Enviro News Asia, Jakarta – The Ministry of Environment has reaffirmed its commitment to maintaining environmental quality by evaluating the performance of 5,476 companies through the Corporate Performance Rating Program on Environmental Management (PROPER). The results of this assessment will be published as a form of transparency and accountability, while also pressuring companies to take responsibility for their environmental impact.
Rasio Ridho Sani, Deputy for Pollution and Environmental Damage Control at the Ministry of Environment, emphasized on Monday (September 15, 2025) that companies receiving red and black ratings would face strict sanctions. “This is not merely about complying with regulations but ensuring that businesses actively contribute to environmental protection,” Sani said in an official ministry statement.
PROPER, which now refers to Minister of Environment Regulation No. 7/2025, applies stricter evaluation standards, including a focus on industrial zones, toll roads, and companies in priority river basin areas such as Citarum, Ciliwung, and Tukad Badung. The palm oil sector dominates participation with 960 companies (18%), followed by hospitality (311 companies) and textiles (259 companies). West Java tops the list of participating provinces with 1,171 companies.
The ministry also highlighted waste management, noting that only 39.1 percent is properly managed. Companies are encouraged to enhance their contributions through the 3R principle, energy efficiency, biodiversity conservation, and social innovation. Companies that comply with regulations are awarded a Blue rating, while those exceeding standards receive Green or Gold ratings—the highest recognition for active participation in carbon trading and social programs.
PROPER’s evaluation involves 137 districts/municipalities, 37 provinces, 20 universities, and the PROPER Advisory Board, comprising academics, media, and public policy experts. According to Nixon Pakpahan, Director of Air Protection, this multi-layered mechanism is designed to ensure objectivity and credibility.
Preliminary results indicate that most companies remain non-compliant, including 150 industrial zones. PROPER participants have until September 27, 2025, to submit objections to the evaluation results.
Through PROPER, the ministry hopes businesses will transform from merely fulfilling obligations to becoming drivers of environmental preservation. “The public also plays a crucial role,” Sani added, “by appreciating companies with Green and Gold ratings and pressuring non-compliant ones to change.” (*)
