Enviro News Asia, Jakarta — The Ministry of Environment through its environmental performance rating program, Program Penilaian Peringkat Kinerja Perusahaan (PROPER), reaffirmed its strategic role in accelerating the transformation of businesses toward sustainable practices. The statement was delivered in Jakarta on April 7, 2026, highlighting the program’s growing impact on corporate environmental accountability.
Participation in PROPER for the 2024–2025 period reached 5,476 companies across various sectors, marking a 22 percent increase compared to the previous year. The rise reflects stronger corporate awareness in disclosing environmental performance and enhancing public accountability.
Hanif Faisol Nurofiq emphasized that PROPER has evolved beyond a compliance-based mechanism into a key driver of industrial transformation. He stated that the program now encourages companies not only to meet regulatory standards but to exceed them through innovation, resource efficiency, and tangible contributions to society.
The assessment results show progress alongside ongoing challenges. A total of 282 companies achieved beyond-compliance status, including 39 companies with Gold ratings and 243 with Green ratings. Most companies remain in the compliant Blue category, while others still fall into non-compliant categories such as Red and Black.
Hanif noted that these outcomes reflect the real conditions of Indonesia’s industrial landscape. He stated that the government will continue to appreciate companies demonstrating environmental leadership while enforcing strict supervision and legal action against those failing to meet environmental standards.
Sudharto P Hadi highlighted that companies achieving Green and Gold ratings are required to implement more comprehensive innovations. He explained that the approach now emphasizes Life Cycle Assessment (LCA), which evaluates the entire lifecycle of products from raw materials to waste management.
He added that Gold-rated companies must go beyond environmental innovation by integrating social innovation, aligning community needs with corporate strategies to create sustainable and independent local communities.
Recognition of PROPER achievements was also expressed by industry representatives. Aryo Djojohadikusumo stated that achieving a Gold rating reflects not only recognition but also a strong commitment to environmental integrity, including efforts to prevent pollution and create added value for surrounding communities.
Throughout the assessment period, participating companies generated 1,806 environmental and social innovations, contributing to energy and water efficiency, greenhouse gas emission reductions, circular economy-based waste management, and biodiversity protection.
These initiatives also delivered direct community benefits, with empowerment programs valued at approximately Rp1.01 trillion and tens of thousands of activities supporting the Sustainable Development Goals (SDGs).
The PROPER 2024–2025 program demonstrates a shift in Indonesia’s environmental policy from compliance toward systemic business transformation. Through transparency, innovation, and reputational incentives, PROPER is shaping a new ecosystem where environmental performance becomes integral to business strategy and competitiveness.
This transformation is expected to serve as a foundation for the future of national industry, ensuring that economic growth, environmental sustainability, and social welfare advance in a unified direction aligned with global standards. (*)
