KPI THE PERFORMANCE INDICATOR FOR ENVIROMENTAL MANAGEMENT

To Pertamina, Indonesia's state Oil and Gas Company, Key Performance Indicator (KPI) was most important to evaluate and stipulate company’s rank­ing and social participation. If the performance declined by appraisal system, it was not impossible that the company’s manager could be expelled. “Even the President Director of the company can be dismissed because the company’s rating is demoted by one grade” Surna Tjahja Djajadiningrat. Head of the Tech­nical Team of PROPER of the Ministry of Environmen­tal Affairs disclosed to Business News (4/12).

The Ministry of Environmental Affairs (KLH) presented awards to companies which had shown good performance in environmental management. The program for Company's Performance Rating (PROPER) of 2011 - 2012 was constantly improved. This year ranking stipulation consisted of five categories, i.e. Black, Red, Blue, Green and Gold. In this period, 1,317 companies of the manufacturing, mining, en­ergy, oil-gas, ago-industry, industrial estate and ser­vice category had been evaluated through examina­tion of environmental management by the controlling officials of environment (PPLH) and the Ministry of KLH and/or the officials of Regional Controller of Envi­ronment (PPLH) of 22 provinces. “Gold is the highest award. If Pertamina’s performance was rated as low, the rating could be degraded from Green to Blue or even Red. The consequences was that leaders of ev­ery unit must be rated as not performing well. We will evaluate” Surna Tjahja said.

Meanwhile non Pertamina companies kept growing in number. Many company executives were getting more and more aware of environmental prob­lems and social responsibility. Their awareness level referred to the system applied in PROPER. The Minis­try of KLH had registered 1,370 companies with bet­tered awareness. “They are aware that operational activities and performance are inseparable from envi­ronmental and social aspects.”

Previously there were many company execu­tives who did not internalize environmental affairs. Now thankfully company executives were changing their mindset. The Ministry of KLH and the Evaluat­ing Team would continue to build company’s mind­set which were environment and social oriented. As soon as companies joined the PROPER appraisal sys­tem, they must comply with the rules. If their aware­ness level was still good, they might be promoted from Blue to Green, or from Green to Gold. In tandem with that there were four points which might serve as company’s reference i.e. image, efficiency, competi­tiveness and environmentally friendly. “In 2013 the number of companies must increase from 1,370 to 1,600 companies.” Tjahja concluded.

The result the total and composition of cat­egories are as follows:

• Gold category including 12 companies (1%)
• Green category including 119 companies (9%)
• Blue Category including 771 companies (59%)
• Red category including 331 companies (25%)
• Black category including 331 companies (6%)

Compared to the previous period where the participants numbered 1002, Gold Award companies rose by 140%, Green rose by 119%, Blue by 59% and Red rose by 25% and Black 6%. The increased number of Red and Black Award winners was on account of growing member of PROPER participants which had not understood all the regulations in ef­fect. As in previous years, the Black Award of PROP­ER would be followed up by law enforcement by the Deputy of Law Establishment of and Environment of the Ministry of KLH.

In the appraisal period of 2011 - 2012, there were 12 companies which were entitled to Gold Cat­egory and received direct award from the Vice Presi­dent, they were: 

1. PT. Indocement Tunggal Prakarsa, Tbk. Pabrik Palimanan
2. Chevron Geothermal Salak, Ltd
3. PT. Pertamina Geothermal Energy Area Kamojang
4. Chevron Geothermal Indonesia. Ltd. Unit Panes Bumi Drajat
5. Star Energy Geothermal (Wayang Windu) Ltd.
6. PT. Holcim Indonesia, Tbk - Cilacap Plant
7. PT. Unilever Indonesia, Tbk - Pabrik Rungkut
8. PT. Semen Gresik (Persero), Tbk - Pabrik Tuban
9. PT. Erna Djuliawati (Lyman Group)
10. PT. Adaro Indonesia
11. PT. Badak NGL
12. PT. Medco E&P Indonesia - Rimau Asset

Meanwhile Vice President of RI Boediono un­derscored that the concept of sustainable develop­ment was a green economy concept which referred to change of extravagant habit into thrifty and efficient habit in tapping natural resources and energy. Fur­thermore he said. “Economic growth must be promot­ed but by still observing environmental management and therefore it is necessary to have reconfiguration in doing business so investment of natural resources and human resources and capital could bring mutual benefit. PROPER is one of the instruments to per­suade companies to change habit. Companies who do not consider the aspect of environment in doing business might lose the chance to grab market share which is more and more related to environmental factor,” Boediono said as quoted by Business news upon delivering his message at the PROPER Award Night (3/12).

On the other hand the Minister of Environmental Affairs Balhatsar Kambuana explained that the execution of PROPER to enhance company's obedient level to Environmental Regulation and to make PROPER as motivator of innovation and competitiveness “One of the implementation was to exercise the 3 R (Reduce-Reuse-Recycle) so company's per­formance would be more effective and efficient and be contribution to the effort of minimizing pollution” Bahaltsar disclosed to Business News (3/12).

PROPER was a KLH premium program which aimed at exercising control through the mechanism of public disclosure which offered incentive or dis­incentive to entrepreneurs or activities regulated in the Regulation no. 5 of the Ministry of Environmen­tal Affairs 2011. Presentation of PROPER award was aimed at persuading companies to obey regulation of the Ministry of Environmental Affairs toward achiev­ing Environmental Excellence through integration of the principles of sustainable development in produc­tion and service industry, application on environmen­tal management, 3R, energy efficiency, conservation of resources and execution of ethical and respon­sible business to the public through people’s develop­ment program.

The criteria of obedience was used in the award giving of blue, red and black and criteria ap­plied for beyond compliance attainment was Green and Gold, The aspect of obedience was rated on the basis of execution of environmental document (AM­DAL/IKL-UPL) efforts in controlling water and air pol­lution, and management of poisonous and hazardous wastage.

 

Business News - December 7, 2012