Environm ental Accounting; A Map o f Environmental Regulation and Policies o f the Indonesia Central Government

20 Environm ental Accounting; A Map o f Environmental Regulation and Policies o f the Indonesia Central Government

Environmental business Sales contribution of environmental products activities

(environmental solutions and Green Products) Efficiency improvements

Cost savings from paperless operations and use of management systems from environmental

activities

E f f e c ts o f i n - h o u s e t r a i n i n g o f e n v i r o n m e n ta l IS O activities

Environmental education

consultants and auditors Total

* 4 : C a l c u l a t e d a s t h e s u m o f p r o p o r t i o n s o f p r o d u c t v a l u e - a d d e d a t e a c h p la n t, depending

protection activities u n d e r t a k e n a t e a c h s it e *5: Estimate of risk avoidance assuming such events arise

on th e

proportion

of environmental

B a s e d o n t h e t a b l e a b o v e , it s h o w s t h e r e a d e r s h o w b r o a d th e

e n v i r o n m e n t a l a c c o u n t i n g s c o p e in its t e r m o f c o s t a n d b e n e f i t s in w h i c h it is

f u n d a m e n t a l t o c l a r i f y t h o s e i te m s t o c o m p r e h e n d a n a l y z e g o v e r n m e n t e n v i r o n ­ mental policies and regulations. Moreover, as the theoretical qualifications, Gray, Babbington (2001) cited from Swanson (2006) states that actually there w a s a b i g e x p a n s i o n o n e n v i r o n m e n t a l a c c o u n t i n g r e p o r t i n g in t h e a r e a p r a c t ic e

a n d t h o u g h t in w h i c h t h o s e t w o e l e m e n t s a r e i m p o r t a n t in d e r i v i n g th e

c o m p r e h e n s i v e c l a u s e s a b o u t e n v i r o n m e n t a l a c c o u n t i n g r e p o r t i n g m a t te r . T h a t is w h y ; t h e r e a r e s o m a n y e v i d e n c e i n f l a m e n o w a d a y s , t h a t m a n y c o m p a n i e s try to make various environmental accounting reporting based on management

b o a r d ’s a u t h o r i t i e s . R u b e n s t e i n ( 1 9 9 4 ) c i t e d f r o m S w a n s o n ( 2 0 0 6 ) in h is journal of “A S y s te m View o f The E n v iro n m e n t o f E n v iro n m e n ta l A c c o u n tin g ” states about; “ ....c o m p r e h e n siv e a b stra c tio n o f e n tire e c o sy ste m be v a lu e d by v a rio u s e stim a tio n p r o c e d u r e s a n d r is k a n a ly s is ’’ which means that various p o s s i b i l i t i e s in e n v i r o n m e n t a l a c c o u n t i n g r e p o r t i n g w h i c h c a r r i e s e c o s y s t e m ’s abstraction are happened by the reason of various estimation procedures and risk analysis. The association between those researchers’ views above about environmental

our government

environmental policies and regulations are that on the risk of performing the

e n c l o s e t h e c o s t s a n d b e n e f i t s m a t t e r , b u t u n f o r t u n a t e l y t h e r e a r e n o n e o f it which are straightforwardly instructed by government as environmental

a c c o u n t i n g i te m s . T h e r e f o r e , t h i s p a p e r o v e r m o r e , d e c l a r e s t h a t t h i s p o l ic y is not quite enough

in f a c i l i t a t i n g c o m p a n i e s f o r a c h i e v i n g s u b s t a n c e s o f

e n v i r o n m e n t a l a c c o u n t i n g r e p o r t i n g , b e c a u s e it o n l y s t r o l l s in t h e m a t t e r o f

Vol. 13, No. 2 / Agustus 2005 © Center fo r Indonesian Accounting and Managem ent Research Postgraduate Program, Brawijaya University

The International Journal o f Accounting and Business Society’

environmental actions reporting only, without gives the major detailed

c r i t e r i o n s o f w h i c h o n e s a r e t h e i te m s o f c o s t s a n d b e n e f i t s b e l o n g to environmental accounting reporting. Additionally, this paper discovers a fact t h a t e n v i r o n m e n t a l a c c o u n t i n g is a c t u a l l y n o t f a i r l y k n o w n in c o m p a n i e s ' p r a c t i c a l s c o p e b e c a u s e it is n o t s o c i a l i z e d e n o u g h . T h e n , w h o s h o u l d b e blamed on?

Conclusions

It c o n c l u d e s t h a t t h e r e a r e f o u r d i r e c t r e g u l a t i o n s c o n c e r n i n g t h e a s p e c t o f environmental accounting. The regulations are Code Number 23/ 1997 about

E n v i r o n m e n t M a n a g e m e n t , C o d e N u m b e r 1 9 /2 0 0 4 a b o u t F o r e s t r y , G o v e r n m e n t Decree Number 74/ 2001 about dangerous and poisonous material management, and Environmental Minister Decree Number 113/ 2003 on Water Pollution Quality Standard of the businesses and/ or Coal Mining Activities. The regulations have potentials as the basis of the implementation of environmental

a c c o u n t i n g f o r t h e b u s i n e s s a c t i v i t i e s in I n d o n e s i a .

Vol. 13, No. 2 / Agustus 2005 © Center fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University