The International Journal o f Accounting and Business Society>

ENVIRONMENTAL ACCOUNTING:

A MAP OF ENVIRONMENTAL REGULATIONS AND POLICIES

OF THE INDONESIAN CENTRAL GOVERNMENT

E ko Gants Sukoharsono

A ccounting Department, Brawijaya University, Indonesia

Abstract

T h i s p a p e r is m a p p i n g t h e e n v i r o n m e n t a l r e g u l a t i o n s a n d policies of the Indonesian Government. The regulations and

of the environmental

four direct

regulations relating to environmental concerns: Code Number 23/ 1997 about Environment Management, Code Number 19/2004 about Forestry, Government Decree Number

about dangerous and poisonous material

Decree Number 113/ 2003 on Water Pollution Quality Standard

of the

businesses

and/ or

Coal

Mining

Activities. The regulations have potentials to support the development

Introduction: The Central Government Environmental Regulations And

Policies Classifications

T h i s p a p e r is m a p p i n g a n d j u s t i f y i n g a f e a s i b l e r e f e r e n c e o f C o m p a n i e s ’ Environmental Accounting Reporting on the case of central

gQvemment

e n v i r o n m e n t a l r e g u l a t i o n s . T h e r e g u l a t i o n s a r e c a t e g o r i z e d i n to t w o i m p o r t a n t

a s p e c t s : d i r e c t a n d i n d i r e c t e n v i r o n m e n t a l r e g u l a ti o n s .

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

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

T h e t w o c a t e g o r i z a t i o n s a b o v e d e m o n s t r a t e t h e d i v i s i o n o f th e c e n tr a l

g o v e r n m e n t e n v i r o n m e n t a l r e g u l a t i o n s w h e r e i n t h e d e f i n i t e e s t a b l i s h m e n t to preserve environment recognized as the exclusive requirement of direct environ-mental regulations with classification below: National Scope: (1)

Perundang-Undangan (Code), (2) Peraturan Pemerintah (Government Decree), ( 3 ) K e p u t u s a n P r e s i d e n ( P r e s i d e n t i a l A c t ) , ( 4 ) K e p u t u s a n / P e r a f u r a n M e n te r i (Minister Decree).

c e n tr a l government policies and regulations which are considered as “formless” environmental regulation because they are not stood as the original preserving

The Indirect

Environmental

Regulations

indicate the

e n v i r o n m e n t a l r e g u l a t i o n s in c e t h e y a r e m o s t l y i n t e g r a t e d i n t o t h e o t h e r n o n - environmental field. However, those formless environmental policies by some m e a n s a r e h a v i n g t h e e n o r m o u s a n d w e l l - b u i l t e f f i c a c y in h e l p i n g t h e

e n v i r o n m e n t a l p r e s e r v a t i o n f a c t u a l p r a c t i c i n g . T h e T a b l e b e l o w is i n d ic a ti n g t w o c l a s s i f i c a t i o n s o f d i r e c t a n d i n d i r e c t g o v e r n m e n t e n v i r o n m e n t a l r e g u l a ti o n s

a n d p o l i c i e s in r e l a t i o n to e n v i r o n m e n t a l a c c o u n t i n g .

The Central Government Environmental Regulations And Policies Classifications

Direct Environmental Regulations Indirect Environmental Regulations

• UU No 23 Tahun 1997 (Code

No 32 Tahun 2004 (Code Number 23 Year of 1997) about

UU

Number 32 Year 2004) Environmental Management

• U U N o 19 T a h u n 2 0 0 4 ( C o d e N u m b e r 19 Y e a r 2 0 0 4 ) a b o u t Forestry

• Peraturan Pemerintah No 74 Tahun 2001 (Government Decree

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

The International Journal o f Accounting and Business Society 3

Number 74 Year 2001) on dangerous and poisonous material management

Keputusan Presiden No 2 Tahun 2002 ( Presidential Act Number 2

Tahun 2002)

Keputusan Presiden No 4 Tahun 2002 ( President Act Number 4

Tahun 2002)

• Keputusan Menteri Lingkungan

Keputusan Menteri Perdagangan

H i d u p N o 113 T a h u n 2 0 0 3 Republik Indonesia Nomor (Environmental Minister Decree

35/KP/II/1995 (The Indonesian N u m b e r 11 3 Y e a r 2 0 0 3 ) o n

Republic Commerce Minister Water Pollution Quality Standard

Decree Number 35/KP/II/1995 of the businesses and/ or Coal

Keputusan Menteri Industri No Mining Activities

250/M/SK/10/1994 (Industrial Minister Decree Number

250/M/SK/10/1994)

A f t e r m a p p i n g t h e r e g u l a t i o n s , t h is p a p e r s t a r t s b y a n a l y z i n g s o m e examinations of central government environmental regulations by various m e a n s o f t h e o r e t i c a l f r a m e w o r k i n t e g r a t e d p o i n ts . H o w is t h e p a p e r s u p p o s e d to analyze

then? As what

about the regulation

c l a s s i f i c a t i o n , h e r e , t h e p a p e r a n a l y z e a s y s t e m a t i c s t u d y t o m a i n t a i n t h e l o g ic a l m a i n s y s te m in t h e a n a l y z i n g p r o c e s s o f d e s c r i b i n g , r e p r e s e n t i n g p o r t r a y s , a n d

c l a r i f y i n g p r o b l e m s . T h e p a p e r is c o n c e r n e d w i t h t h e d i r e c t e n v i r o n m e n t a l regulations only.

Direct Environmental Regulations

Direct environmental Regulations are regulations released by the Indonesian Government intentionally and directly by means to preserve and p r o t e c t e n v i r o n m e n t in I n d o n e s i a . It c o u ld b e in d ic a te d b y e x p l i c i t l y g i v i n g th e w o r d s o f e n v i r o n m e n t in t h e tit le s o f th e r e g u l a t i o n s a n d its m e a n i n g in

a s s o c i a ti o n to t h e e n v i r o n m e n t a l m a n a g e m e n t ( s e e t h e t a b l e a b o v e ) .

Undang-Undang Republik Indonesia No 23 Tahun 1997 (The Indonesian

Code Number 23 Year 1997)

T h e g e n e r a l c o n t e n t o f th e U U R1 no 23 T ahun 1997 Tentang: P en g elo -la a n L in g k u n g a n H id u p is a b o u t E n v i r o n m e n t a l M a n a g e m e n t , w h i c h

c l a s s i f i e s i n to t h o s e g e n e r a l p o i n t s b e lo w : Vol. 13, No. 2 / Agustus 2005

© Center fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University

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

1. L in g k u n g a n hid u p In d o n e s ia y a n g d ia n u g ra h k a n Tuhan - YM E k e p a d a ra k ya t da n b a n g sa I n d o n e s ia m e ru p a k a n k a ru n ia dan r a h m a tN y a y a n g

wajib dilestarikan dan dikembangkan kemampuannya agar dapat teta p

m e n ja d i su m b e r dan p e n u n ja n g hidup b a g i r a k y a t d a n b a n g sa In d o n e sia serta m a k h lu k hidup la in n y a d e m i kela n g su n g a n d a n p e n in g k a ta n k u a lita s hidup itu sendiri.

2. pembangunan sebagai up ay a sadar dal am mengolah dan memanfaatkan sum ber daya alam untuk meningkatkan

b a ik u n tu k m e n c a p a i k e m a k m u ra n lahir m a u p u n untuk m en c a p a i k e p u a sa n bat'm. O leh k a re n a itu. penggunaan sumber daya alam harus selaras, serasi, semibang

kemakmuran rakyat

dengan fu n gsi lingkungan hidup

3. UU ini memuat norma Itukum lingkungan hidup. S e la in itu, uu in i a ka n m en ja d i la n d a sa n u n tu k m e n ila i d a n m en yesu a ika n

s e m u a p e ra tu ra n p e r u n d a n g -u n d a n g a n y a n g m e m u a t keten tu a n te n ta n g lingkungan h id u p y a n g berlaku, y a itu p e ra tu ra n

p e r u n d a n g -u n d a n g a n m e n g e n a i p e n g a ira n , p e r ta m b a n g a n dan energi, kehutanan, k o n s e r v a s i s u m b e r d a y a a la m hciyati dan eko sistem n ya , industri, p e r m u k im a n , p e n a ta a n ruang, ta ta g u n a tanah, d a n lain-lain.

4. u p a y a p e n g e n d a lia n d a m p a k lin g k u n g a n h id u p tid a k dap a t

d ile p a s k a n d a ri tin d a ka n p e n g a w a s a n a g a r d ita a tin y a keten tu a n p e r a tu r a n p e r u n d a n g -u d a n g a n d i b id a n g lin g k u n g a n hidup. S u a tu p e r a n g k a t h u k u m y a n g b e rsifa t p r e v e n t if b eru p a izin m e la k u k a n usaha d a n /a ta u k e g ia ta n lain. O leh k a re n a itu, dala m izin h a ru s d ica n tu m ka n s e c a r a teg a s s y a ra t d a n kew a jib a n y a g

h a ru s d ip a tu h i d a n d ila k s a n a k a n o le h p e n a n g g u n g ja w a b usaha

d a n a ta u kegiatan lainnya. A p a y a n g d ik e m u k a k a n terse but di atas menyiratkan ikut sertanya berbagai ins tans i dalam pengelolaan lingkungan hidup sehingga perlu dipertegas batas

wewenang tiap-tiap instansi ya n g ikut serta di bidang

pengelolaan lingkungan hidup

5. pem erintah memiliki asas y a itu tanggungjawab negara, d im a n a negara

a la m akan m e m b erik a n m a n fa a t b a g i k e se ja h te r a a n d a n m u tu h id u p rakyat s a a t in i dan m a sa datang, d a n j u g a n e g a ra m e n ceg a h p id a

m enjam in p e m a n fa a ta n sumber daya

d ila k u k a n n y a kegia ta n p e m a n fa a ta n s u m b e r d a y a a la m dala m w ila y a h y u rid ik sin y a y a n g m e n im b u lk a n k e ru g ia n terh a d a p w ila y a h y u rid ik si n e g a ra lain, s e r ta m e lin d u n g i n e g a ra terhadap

d a m p a k keg ia ta n d i lu a r w ila y a h n egara. S e la in itu, p e m e rin ta h j u g a p u n y a asas k b e rla n ju ta n y a n g b e rm a k n a b a h w a setia p o r a n g m em iku l k e w a jib a n n y a d a n ta n g g u n g ja w a b terhadap

g e n e r a s i m en d a ta n g d a n te r h a d a p s e sa m a d a la m sa tu generasi. Vol. 13, No. 2 / Agustus 2005

© Center fo r Indonesian A ccounting a n d M anagem ent Research Postgraduate Program, Brawijaya University

The International Journal o f Accounting and Business Society 5

U n tu k terla k sa n a n y a kew a jib a n d a n ta n g g u n g ja w a b terse b u t maka

h a ru s dilestarikan. T erle sta rik a n n y a

kemampuan

lin g ku n g a n

h id u p

h id u p m en ja d i tu m p u a n te rla n ju tk a n n ya p em b a n g u n a n .

kem a m p u a n

lin g k u n g a n

6. audit lingkungan hidup m eru p a ka n s u a tu in stru m en p e n tin g

b a g i p e n a n g g im g ja w a b usaha dan k eg ia ta n u n tu k rneningkatkan

e ftsie n si keg ia ta n da n kin erja n ya d a l am m e n a a ti p e rsy a ra ta n lin g k u n g a n h id u p y a n g d iteta p ka n o leh p e r a tu r a n p e r u n d a n g - u n d angan. D a la m p e n g e rtia n ini, a u d it lin g k u n g a n d ib u a t seca ra s u k a re la u n tu k m e m ve riftka si keta a ta n terh a d a p p e ra tu ra n

p e r u n d a n g -u n d a n g a n lin g ku n g a n h id u p y a n g berlaku. serta

d e n g a n k e b ija ksa n a a n dan sta n d a r y a n g d ite ta p k a n seca ra in te rn a l o leh p e n a n g g u n g ja w a b u sa h a d a n a ta u k eg ia ta n y a n g bersa n g ku ta n .

e f f e c t s o f c r e a t i n g s o c i a l a n d e n v i r o n m e n t a l p r o b l e m s a n d t h e r e f o r e th e y a r e r e s p o n s i b l e f o r g i v i n g r e s p o n d t o t h a t s o c ie t y ” . In g e n e r a l , t h is l a b e l i n g m e a n s about

g e n e r a l c o n t e x t s o f U U N o 2 3 / 1 9 9 7 a ls o b r in g t h e m a t t e r o f e n v i r o n m e n t a l le g a l n o r m s a s t h e f u n d a m e n t a l t o w a r d e n v ir o n m e n t a l r e g u l a t i o n d e r i v a t i o n s f o r mining and energy, forestry, natural resource and ecosystem conservation,

i n d u s t r i e s , h o s p i t a l i t y , l a n d , i r r ig a t io n .

The next important

include about

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

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

government. This paper also finds the derivation of rights and obligations between citizen and government such as UU no 23 Tahun 1997 formulations about government and civil rights and obligations toward the environmental preservation, which derive as:

• Civil Rights:

H a k aias in fo rm a s i lin g k u n g a n hidup, (2) h a k

b e rp era n d a la m p e n g e lo la a n lin g k u n g a n h id u p b era sa ska n p a d a k e te rb u k a a n • Civil

Obligations: m e m elih a ra k e le sta ria n f u n g s i lin g ku n g a n

h idup, (2) m e n c e g a h d a n m e n a n g g u la n g i p e n c e m a r a n dan p e r u s a k a n lin g k u n g a n hid u p

• Government Right: p e n g u a s a a n terh a d a p s u m b e r d a y a alam •

dan m en g em b a n g ka n k e b ija k s a n a a n d a la m ra n g k a p e n g e lo la a n lin g k u n g a n hidup, (2) m e n g a tu r p e n y e d ia a n , p e ru n tu k a n , p e n g g u n a a n , p e n g e lo la a n lin g k u n g a n h id u p d a n p e m a n fa a ta n k e m b a li s u m b e r d a y a alam, te r m a su k s u m b e r d a y a g en etika , (3) m e n g a tu r p e r b u a ta n hukum

Government

obligations:

(1 ) m e n g a tu r

d a n h u b u n g a n h u k u m a n ta ra o ra n g d a n s u b je k h u k u m la in n ya serta p e r b u a ta n h u k u m terh a d a p s u m b e r d a y a a la m d a n su m b e r d aya

b u atan, te r m a s u k s u m b e r d a y a g en etika , (4) m en g en d a lika n k e g ia ta n y a n g m e m p u n y a i d a m p a k social, (5) m en g em b a n g ka n p e n d a n a a n b a g i u p a ya p e le sta ria n f u n g s i lin g k u n g a n hidup.

T h o s e d e r i v a t i o n s o f r i g h t s a n d o b l i g a t i o n s a b o v e a r e m e r e l y s u i t a b l e to t h e s t r u c t u r e t h e o r y b y G i d d e n s ( 1 9 8 6 ) w h o a f f i r m e d t h a t s o c ia l s c ie n c e s n o w a d a y s f o c u s o n a n a l y z i n g t h e i n t e r a c t i v e a s s o c i a t i o n b e t w e e n t h e s tr u c tu r e

a n d a g e n c y n o t o n t h e g r a d a t i o n a l f o c u s a n y m o r e . S u p a r l a n ( 2 0 0 2 ) s ta t e d th a t t h e m i x a n a l y z e s b y G i d d e n s a n d G r a m s c i w i t h h i s H e g e m o n y T h e o r y fo u n d t h a t t h e e q u a l i t y o f g o v e r n m e n t a n d c i t i z e n s ’ r i g h t s a n d o b l i g a t i o n s a r e a lw a y s

a d a p t e d a n d d e v e l o p e d f o r t h e p u r p o s e o f t h e s o c i e t y b y t h e i n d ic a to r s o f democratization, legal supremacy, and civil right esteem. For that particular t h e o r y , U U n o 2 3 T a h u n 1 9 9 7 h o p e s t h a t c l e a r l y d e r i v i n g r i g h t s a n d o b l ig a ti o n s

a m o n g c i t i z e n a n d g o v e r n m e n t c a n i m p r o v e t h e d e m o c r a t i c s y s t e m in I n d o n e s i a also maintain the legal supremacy existence.

Content Analysis of Indonesian Code Number 23 Year of 1997 U U n o 2 3 T a h u n 1 9 9 7 d i s t r e s s e s o n t h e g e n e r a l to t h e s p e c if ic

important policies about environmental preservation actions which about

c o n s i d e r a s t h e i m p o r t a n t m a t t e r in h e l p i n g t h e h a r m o n i z a t i o n b e t w e e n h u m a n and environment.

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

The International Journal o f Accounting and Business Society

a. Transparency

S e c t i o n 5 ( 2 ) a n d ( 3 ) U U N o 2 3 T a h u n 1 9 9 7 m e n t i o n s t h e i m p o r t a n c e in

d i s c l o s i n g t h e e n v i r o n m e n t a l i n f o r m a t i o n a s t h e l o g ic c o n s e q u e n c e d u e to th e r ig h t in s u p e r v i s i n g t h e e n v i r o n m e n t b a s e d o n th e t r a n s p a r e n c y f r a m e w o r k :

• (2) "S e tia p orcm g m e m p u n ya i h a k a la s in fo rm a si lin g ku n g a n

d a la m p e n g e lo la a n lin g k u n g a n h id u p ”,

h id u p y a n g

b erka ita n

dengan peran

• (3) S e tia p o ra n g m e m p u n ya i h a k u n tu k b e rp era n d a la m ra n g k a p e n g e lo la a n

dengan p e r a tu r a n p e r u n d a n g -u n d a n g a n ”.

lin g ku n g a n

h id u p

sesu a i

R o l e s i n v o l v e in t h i s s t a t e m e n t a r e c o n s i d e r e d a s t h e r o l e s in t h e p r o c e s s o f decision taking (public hearing) specifically on the process of analytical assessment which discusses about environmental effects and policies by transparency principle. It hopes that this principle could raise the efficacy of environmental implementation and environmental accounting reporting up. Buritt (1997) mentioned that doing environmental transparency was important

b e c a u s e e n v i r o n m e n t a l m a t t e r s w e r e a l w a y s c o m p l e x w h i c h a b o u t it w a s n o t o n l y s o m e h o w b o u n d t o e n v i r o n m e n t a l e f f e c t, p o l i c i e s , b u t a l s o t h e f i n a n c i a l interest achieved by surroundings.

The e sse n c e o f e n v iro n m e n ta l a c c o u n ta b ility a n d tra n sp a re n c y is th a t environm ental matters are too complex and crucial to be left entirely in th e a lre a d y o v e rb u rd e n e d h a n d s o f c o rp o ra tio n s. Tw o re a so n s a re p r o v id e d in su p p o rt o f G ra y e t a l ’s (1993) view. First, th e y c la im th a t it is “u n rea so n a b le ” to e x p ec t c o rp o ra tio n s to a d d to the n u m b e r o f d ecisio n s th ey m a ke a ffe c tin g th e w elfa re o f in d iv id u a ls b eca u se o f the la ck o f a p p ro p ria te in fo rm a tio n a b o u t

e c o lo g ic a l im p a cts th a t c o rp o ra te a ctiv itie s m ake. S econd, th ey p r o te s t th a t fin a n c ia l m a rkets have sh o w n

an “a w eso m e in d iffe r e n c e ” to th e so c ia l a n d e n v iro n m e n ta l a c tiv itie s o f the

c o m p a n ie s th e y own, unless there are fin a n c ia l g a in s to be m ade

f r o m th ese activities. The cle a r m essa g e is th a t w ith o u t (a n d p e r h a p s e ven w ith) reg u la tio n co rp o ra tio n s w ill ignore the

e n v ir o n m e n t, i f it is no t in th e ir fin a n c ia l in te r e st to do so

b. Environmental Disclosure Substances

U U n o 2 3 T a h u n 1 9 9 7 S e c ti o n 5 (2 ), 6 ( 2 ), 7 ( 2 e ) , 1 5 ( 1 ) f o r m u l a t e t h e

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

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

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

o r d e r to a s s e s s t h e r e s p o n s i b l e g r o u p c o m p l i a n c e t o w a r d g o v e r n m e n t p o l ic ie s

a n d r e g u l a t i o n s . A c c o r d i n g t o S e c ti o n 5 ( 2 ) , it is s t a t e d t h a t ;

In fo r n ia si lin g k u n g a n hidup se b a g a im a n a d im a k s u d padci ayat ini

■ d a p a t b e ru p a d a ta , kete ra n g a n , a ta u in fo n n a s i lain va n g b erkenaan

d e n g a n p e n g e lo /a a n lin g ku n g a n h id u p y a n g m e n u ru t sifa t dan tu ju a n n y a m e m a n g terb u ka u n tu k d ik e ta h u i m a sya ru ka t, se p erti

d o k u m e n a n a lisis d a m p a k lin g ku n g a n hidup, la p o ra n d a n eva lu a si

h a s il p e m a n ta u a n lin g ku n g a n hidup, b a ik p e m a n ta u a n p e n a ta a n tn a u p u n p e m a n ta u a n p e ru b a h a n k u a lita s lin g k u n g a n hidup, dan r e n c a n a ta la ruang.

A b o v e p a s s a g e e x p l a i n t h e U U n o 2 3 T a h u n 1 9 9 7 's e l e m e n t s o f e n v i r o n m e n t a l r e p o r t i n g w h i c h a b o u t c l a s s i f y in to A M D A L r e p o r t , e n v i r o n m e n t a l m o n i t o r i n g report and evaluation (UKL, UPL) and space arrangement plan. Moreover,

A M D A L is c o n s i d e r e d a s t h e p r e e m p t i v e p o l i c i e s in w h i c h it w o r k s o n t h e b a s e o f p l a n n i n g a n d d e c i s i o n t a k i n g t e r m . H o w e v e r , A M D A L is only

acquired by

t h e b u s i n e s s d o e r s , w h i c h f u l f i l l t h e r e q u i r e m e n t o n c l a i m i n g t h e i r p o s it i v e a n d n e g a t i v e e f f e c t s b e l o w t h e d a n g e r o u s e x te n t . A s s e s s i n g a n d f o r m u l a t i n g t h o s e p o s i t i v e a n d n e g a t i v e e f f e c t s a r e m a p p e d in to : ( a ) t h e a m o u n t o f h u m a n w h o

w i l l g e t t h e i m p a c t b y s o m e a c t i v i t i e s a c ti o n , ( b ) t h e s p r e a d a r e a s in w h i c h t h o s e

e f f e c t m u l t i p l y , ( c ) i n t e n s i t y a n d d u r a t i o n , ( d ) c u m u l a t i v e e f f e c t s , ( e ) r e v e r s ib l e and irreversible effects.

c. Environm ental Accounting Disclosure Substances

U U n o 2 3 T a h u n 1 9 9 7 g i v e n o c l e a r e x p l a n a t i o n a b o u t t h e p o s s i b i l i t y in

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

a c c e p t a b l e b e c a u s e U n d a n g - U n d a n g is t h e g e n e r a l p o l i c i e s w h i c h c a n b e w i d e ly derived more into Peraturan Pemerintah, Keputusan Presiden, Keputusan M e n t e r i , a n d e tc . M o r e o v e r , t h i s p a p e r f in d s t h a t a c t u a l l y c l a u s e s i n t e g r a t e d o n

d ire c t or less ta n g ib le, with short or long­

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

The International Journal o f Accounting and Business Society

In t h e o t h e r w o r d , e n v i r o n m e n t a l c o s t s e x p o s e t h e c o r r e l a t i o n b e t w e e n t h e a c t i v i t y o f t h e c o r p o r a t e d e a l i n g w i t h its e n v i r o n m e n t a l a t t a c h a n d t h e possibility to perform the monetary aspects of the environmental reporting as

their responsibilities

f o rm of enclosing

e n v i r o n m e n t a l c o s t s t o w a r d c o m p a n i e s r e p o r t is p o s s i b l e s u c h b e l o w ( b y th e m o n e t a r y a n d n o n m o n e t a r y t e r m ):

- id e n tify e n v iro n m e n ta l m a n a g e m en t c o st -

p r io r itiz e a n d se le c t the costs to in vestig a te in m o re d e ta il -

q u a n tify a n d q u a lify the costs -

a llo c a te c o sts to p r o d u c ts o r p r o c e s s e s re sp o n sib le f o r th eir

g e n e ra tio n s -

in te g ra te c o sts into fa c ility d e c isio n -m a k in g ( W ritar, 1997)

Undang-Undang Republik Indonesia Nomor 19 Tahun 2004 (Indonesian Code Num ber 19 Year 2004 About The Establishment o f Government

Decree Substitution Over The Code Number 1 Year 2004)

T h e U n d a n g - U n d a n g R e p u b l i k I n d o n e s i a N o m o r 19 T a h u n 2 0 0 4 a n d Peraturan Pemerintah Nomor 1 Tahun 2004 regulations work for the same

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

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

Content Analysis o f Indonesian Code Number 19 Year 2004

Those two regulations above, unfortunately mention nothing about

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 t h e y a r e o n l y t a l k e d a b o u t th e m a g n i t u d e o f l e g a l a u t h o r i z a t i o n c o m m i t m e n t in t h e m i n i n g a c t i v i t i e s w ith in th e forestiy areas. There are no clauses about transparency

or environmental r e p o r t i n g , a n d e v e 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 e n c l o s e d o n th e U n d a n g - U n d a n g R e p u b l i k I n d o n e s i a N o m o r 19 T a h u n 2 0 0 4 a n d P e r a t u r a n P e m e r i n t a h N o m o r 1 T a h u n 2 0 0 4 . H o w e v e r , t h e s e r e g u l a t i o n s n e e d to b e

c o n s i d e r e d a s p r a c t i c a b l e f o r m o f l e g i t i m a c y p r e m i s e in g e n e r a l , w h e r e in it is nothing to do with

l e g i ti m a c y in reporting matter. According to Buritt (1997).

h e s a id t h a t l e g i t i m a c y t h e o r y d e a l t w ith t h e c o m p a n i e s ’ w a y s in p r e s e r v i n g its r i g h t t o b e e x i s t e d in s o c i e t y b y i n t e g r a t i n g s o c i e t y v a l u e s i n s i d e t h e c o m p a n i e s . In t h e o t h e r w o r d , t h i s p r e m i s e s c a r r i e s s a m e v a l u e a s w h a t l e g i ti m a c y in r e p o r t i n g a l s o h a s w h i c h a r e s o c i a l v a l u e s ’ s u b s t a n c e s f o r t h e s a k e o f s o c ia l

perception forming and credible performance upholding.

Peraturan Pemerintah N om or 74 Tahun 2001 Tentang Pengelolaan Bahan Berbahaya dan Beracun (G overnm ent Decree Number 74 Year 2001

About the B3 Management)

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

e l e m e n t s e s p e c i a l l y in t r a d e s a n d i n d u s t r i e s b r i n g a t e n d e n c y o f t h e r is i n g n u m b e r o f t h e d a n g e r o u s a n d p o i s o n o u s m a t e r i a l s , w h i c h a r e w i d e l y u til iz e d . N o w a d a y s , t h e r e is n o r e g u l a t i o n c o n c e r n e d o n t h e m a n a g e m e n t o p e r a t i o n o f t h o s e d a n g e r o u s a n d p o i s o n o u s m a t e r i a l s e s p e c i a l l y o n t h e m a t t e r o f p o l lu t io n p r e v e n t i o n a n d e n v i r o n m e n t a l q u a l i t y r e d u c t i o n - m i n i m i z a t i o n . T h a t is w h y , t h is p o l i c y is t r y i n g t o p r e v e n t t h e i n c r e a s i n g n u m b e r o f n e g a t i v e i m p a c ts , w h i c h

c a u s e e n v i r o n m e n t a l d i s a s t e r , a n d m e n ’s h e a l t h b y p r o v o k i n g t h e m a n a g e m e n t s y s t e m o f p o i s o n o u s a n d d a n g e r o u s c h e m i c a l s a s w h a t b e e n w e ll i n f o r m e d b y the science and technology. Moreover, this “ P e ra tu ra n P e m e rin ta h R e p u b lik In d o n e s ia N o m o r 74 Tahun 2 0 0 1 T en ta n g P e n g e lo la a n B a h a n B e rb a h a ya dan

B e ra c u n ” is a ls o e s t a b l i s h e d t o a n s w e r f a c t u a l o d d e v e n t w h i c h is a b o u t p a rt ia l m a n a g e m e n t s y s t e m o f c o m p a n i e s in o r g a n i z i n g t h e B 3 t o x i c w a s t e s in a w e ll management

storage, packaging,

s y m b o l i z i n g a n d l a b e l in g , c a r r i a g e , c o n s u m i n g , i m p o r t i n g , e x p o r t i n g a n d removing.

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1. Section 4 “ S e tia p o r a n g y a n g m ela ku ka n keg ia ta n p e n g e lo la a n B 3 w a jib m e n c e g a h te r ja d in y a p e n c e m a r a n da n k e ru sa k a n lin g k u n g a n ”, this clause

d e ta i l a n d c o m p r e h e n s i v e ite m s o r c l a u s e s o f B 3 s u p e r v i s i o n n e e d to b e established.

2. S e c ti o n 1 ( 2 ) , ( 3 ) , ( 4 ) , ( 5 ) , ( 6 ) , ( 7 ) d i s t r e s s o n t h e s u b s t a n c e s o f B 3 ( B a h a n Berbahaya dan Beracun-Poisonous and Dangerous Material) management, registration,

storage, packaging,

symbolization,

labeling, consuming,

F u r t h e r m o r e , it s h o u l d b e c o m p r e h e n d t h a t t h e o t h e r c l a u s e s , e v e n t h o s e that are not having any correlation to the need of environmental p r e s e r v a t i o n a r e r e c o g n i z e d a s i m p o r t a n t in a t e r m o f d i s c l o s i n g s u b s t a n c e s .

Content Analysis o f Government Decree Number 74 Year 2001

( 1 ) S e c ti o n 2 : “ P e n g a tu ra n p en g elo la a n B3 b ertu ju a n u n tu k m en ceg a h dan

a ta u m e n g u r a n g i re sik o d a m p a k B 3 terh a d a p lin g ku n g a n hidup, keseh a ta n m a n u sia d a n m a k h lu k hid u p lainnya. ” T h i s c l a u s e e x p l a i n s a b o u t t h e a c ti o n in m a n a g i n g B 3 in o r d e r t o d i m i n is h t h e i m p a c t r is k o f B 3 t o w a r d th e

e n v i r o n m e n t , m e n ’s h e a lt h , a n d o t h e r l iv i n g c r e a t u r e s . It h o p e s t h a t

c o m p a n i e s w i l l f i n a l l y d i s c l o s e t h o s e p a r t i c u l a r a c ti o n s .

( 2 ) S e c ti o n 5 c o n c e r n s a b o u t t h e c l a s s if i c a t io n o f B 3 w h i c h a re : e x p l o s i v e , o x i d i z i n g , e x t r e m e l y f l a m m a b l e , h i g h ly f l a m m a b l e , f l a m m a b l e , e x t r e m e l y Vol. 13, No. 2 / Agustus 2005 © Center fo r Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University

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

toxic, highly toxic, moderately toxic, harmful, corrosive, irritant, dangerous to t h e e n v i r o n m e n t , c a r c i n o g e n i c , t e r a t o g e n i c , a n d m u t a g e n i c w h i c h h e r e , in t h is p o l i c y , - t h e r e is n o s p e c i f i c f o r m o f d i s c l o s i n g t h o s e c la s s i f i c a t i o n . M o r e o v e r , t h i s p a p e r h o p e s t h a t t h is c a t e g o r i z a t i o n w o u l d h e l p to in fo rm s o c i e t y a b o u t t h e i r k n o w l e d g e f o r t h e s a k e o f t h e i r a w a r e n e s s t o w a r d th e (a ) utilizable B3, (b) un-utilizable of B3, (c) moderate utilizable of B3.

(3) Section 6 concerns on the B3 authorization facilitates the harmonization of environmental

preservation among companies through the im p o r ta n t

d e t e r m i n e d a c t i o n s i n c l u d e d in c l a u s e s o f G o v e r n m e n t P o l i c y N u m b e r 74 Y e a r 2 0 0 1 . H e r e , t h is p a p e r w il l a ls o e n c l o s e t h e a u t h o r i z a t i o n 's s y s te m w h i c h a r e d i v i d e d in to :

(a)

Producers and importers must register their B3 elements,

(b) the obliged B3 authorizations are only applied for one chance toward t h e f i r s t m o m e n t f o r t h e i m p o r t e d o r p r o d u c e d i te m s ,

(c) The institutions, which are responsible for authorizing B3, must s u p p l y c o p y o f its B 3 p o l l u t i o n t o t h e o t h e r i n s t i t u t i o n s , w h i c h a re

d i r e c t l y o r i n d i r e c t l y in c h a r g e o f it.

( 4 ) S e c t i o n 11 a n d 12 a r e a b o u t t h e a c t i o n t o a t t a c h t h e “ M a t e r i a l D a t a S h e e t ” to

production, labeling, s to r a g e , t r a n s f e r / t r a n s p o r t a t i o n , a n d d i s t r i b u t i o n . T o b e n o t i c e d t h a t t h o s e ite m s w h i c h a r e i n c l u d e d in “ M a t e r i a l D a t a S h e e t ” a r e b a s e d o n t h e re a l completing of companies’ preservation.

( 5 ) S e c t i o n 19 t r i e s t o p r e v e n t t h e p o s s i b l e e m e r g e n c y a c t i o n s o f B 3 s to r a g e m a n a g e m e n t , w h i c h in S e c t i o n 2 5 it is a g a i n d i s c l o s e d a b o u t s t e p - b y - s t e p movement to overcoming the accidents because of emergency conditions such as:

( a ) I s o l a t i n g t h e p l a c e o f a c c i d e n t a re o c c u r r e d ,

( b ) S o l v i n g c a s e b y t h e f ix p r o c e d u r e s o f a c c i d e n t m a n a g e m e n t ,

(c) Forwarding the

report of incidents

or emergency case to th e

g o v e r n m e n t a l s ta f f s in o r d e r to f u lf il l t h e s y s te m o f g o v e r n m e n t a l supervision.

( 6 ) S e c t i o n 2 7 is a b o u t t h e c o m p a n i e s ’ r e s p o n s i b i l i t i e s in r e s o l v i n g th e

e n v i r o n m e n t a l q u a l i t y , w h i c h a r e a l r e a d y i n - d e v a s t a t e d s t a t e o r p o l lu t e d condition.

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c a p a b i l i t y in d i s c l o s i n g its e n v i r o n m e n t a l a c t i o n s b y t h e s u b s t a n c e w h i c h to b e mentioned above.

D o w n to t h e f o c u s o f ite m , w h i c h b e e n b r o u g h t b y S u k o h a r s o n o ( 2 0 0 2 ) , t h is p a p e r in f a c t , f i n d s t h a t t h e r e a r e n o s p e c i f i c c l a u s e s i n c l u d e d in Government Policies Number 74 Year 2001, which directly concern on environmental cost;

E n v iro n m e n ta l a c c o u n tin g w ill a lso serv e as a s o lid fo u n d a tio n f o r an

e n v iro n m e n ta l m a n a g e m en t system (EM S), or in crea se the

e ffe ctive n e ss o f a n e x istin g one. In addition, h a v in g an e n v iro n m e n ta l

a c c o u n tin g sy ste m in p la c e allo w s fir m s to: better manage environmental cost, ............... more accurately cost products and

processes , include potential environmental costs in appraisal

processes and investment analyses

S o m e h o w , it d o e s s t a t e a b o u t t h e ite m o f ''‘‘d isc o v e r n ew o p p o rtu n itie s to o ffse t o r m in im ize e n v iro n m e n ta l c o sts th ro u g h e n v iro n m e n ta l th in k in g ” which talks

a b o u t a n e n f o r c e m e n t t o s h o w c o m p a n i e s ’ a c ti o n in c l a s s i f y i n g e n v i r o n m e n t a l o p p o r t u n i t i e s w i t h s t r a i g h t c o r r e l a t i o n to e n v i r o n m e n t a l c o s t. T h e r e f o r e , it would not be mistaken for saying that actually the environmental cost are the

major issues which being a groundwork toward the clauses of harmonizing the

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

a c c o u n t i n g a c t i o n s t h r o u g h e a c h c o m p a n y ’s u n i q u e s u b s t a n c e s .

Keputusan Menteri Negara Lingkungan Hidup Nomor 113 Tahun 2003

(Environmental Minister Decree Number 113 Year 2003)

T h e w a t e r q u a l i t y s u p e r v i s i o n a n d w a t e r c o n t a m i n a t e d p r e v e n t i o n is th e

g e n e r a l ite m o f K e p u t u s a n M e n te r i N e g a r a L i n g k u n g a n H i d u p N o m o r 113 T a h u n 2 0 0 3 T e n t a n g B a k u M u t u A i r L im b a h B a g i U s a h a d a n A t a u K e g i a t a n P e r t a m b a n g a n B a t u B a r a w h i c h t h e n , t h is p o l i c y d e f i n e s t w o d i v is i o n ite m s s u c h a s ; m i n i n g , a n d p r o c e s s i n g / w a s h i n g . T h i s p a r t i c u l a r p o l i c y a ls o s u g g e s t s t h e q u a l i t i e s e x t e n t o f c o a l w a t e r p o llu t io n w h e r e i n im p l y o n t h e l i m it a ti o n

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

1. Section 3(2) “ a p a b ila b aku m u tu a ir lim b a h b a tu b a ra seb a g a im a n a

d im a k s u d d a la m a y at (1) te rla m p a u i k a ren a k e a d a a n te rte n tu dan a tau k o n d is i c u a c a te rte n tu m a ka p e n a n g g u n g ja w a b u sa h a da n a ta u kegia ta n wcijih

keg ia ta n p e n a n g g u la n g a n pencemaran

m e la p o rka n

da n

m en y a m p a ik a n

kepada

B u p a ti/W a lik o ta

dengan

tem b u sa n kep a d a

G u b e r n u r /M e n te r i”. T h e p r e v i o u s c l a u s e c o n s i d e r s a s t h e a c ti o n c f p r e v e n t i n g t h e q u a l i t y e x t e n t o f c o a l w a t e r w a s t e a s in its n o r m a l ra te ,

h o w e v e r , i f c e r t a i n c a s e s h a p p e n b y t h e c a u s e o f t h e o v e r r a t e n u m b e r in c o a l w a s t e w a t e r , it is o b l i g e d b y c o m p a n i e s in r e p o r t i n g a n d l a u n c h i n g t h e action of preventing those pollutions toward the responsibility government. T h i s i m p o r t a n t e v e n t n e e d s t o b e p u b l i s h e d in c o m p a n i e s ’ 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 o s t l y in t h e m a t t e r o f c o s t s a n d b e n e f i t s s u b s ta n c e s .

2. Section 5 “a p a b ila h a s il k a jia n A M D A L , UKL, U PL d a r i u sa h a da n a ta u k e g ia ta n p e r ta m b a n g a n b a tu b a ra m e n sy a ra tk a n b a k u m u tu a ir lim b a h leb ih k e ta t d a r i o u k u m u tu a ir lim b a h se b a g a im a n a d im a k s u d dala m S e c tio n 4, m a k a d ib erla k u ka n b a ku m u tu a ir lim b a h se b a g a im a n a y a n g

d ip e rsy a ra tk a n o le h A M D A L a ta u UKL, d a n U P L ”, this clause talks about t h e c o m p a n i e s p r e v e n t i o n a c t i o n s w h i c h a r e o b l i g e d b y g o v e r n m e n t in o r d e r t o m a i n t a i n t h e e n v i r o n m e n t a l l i f e ’ s q u a l i t i e s . I t is i m p o r t a n t t o u n d e r s t a n d

some stiff qualities control toward some businesses, which AMDAL do not

c o n f e s s o n it, a n d U K L a ls o U P L m u s t b e e m p l o y e d b y c o m p a n i e s w ith th e n e w o t h e r c o m p l e x r e q u i r e m e n t s . T h i s c l a u s e c o n s i d e r s a s i m p o r t a n t v a lu e

b e c a u s e it is g o o d o u t c o m e s w h i c h a r e ; e n v i r o n m e n t a l p r e s e r v a t i o n , environmental reporting harmonization, and environmental accounting reporting

somehow, it contains of

e n v i r o n m e n t a l p r e s e r v a t i o n c l a u s e , f u r t h e r , it a ls o h e lp s in h a r m o n i z i n g a n d s y n c h r o n i z i n g 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 y its p r a c t ic a l fo rm involved.

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The International Journal o f Accounting and Business Society

4. S e c t i o n 8 ( 1 ) a n d ( 2 ) m e n t i o n a b o u t c o m p a n i e s ’ a c t i o n in h a v i n g t h e p o i n t of compliance study about coal wastewater. This move, once again, should

b e d i s c l o s e d b e c a u s e it i n v o l v e s c o s ts a n d a ls o f u t u r e b e n e f i t s v a l u e s t o w a r d

c o m p a n i e s , a s w h a t h a d b e e n m e n t io n e d in S e c ti o n 8 ( 2 ) “ L o k a si titik p e n a ta a n s e b a g a im a n a d im a k s u d d a l am S c c tio n (!) h a ru s b e ra d a p a d a s a lu ra n a ir lim b a h y a n g : (a) k e lu a r d a r i k o la m p e n g e n d a p a n air lim b a h ...................................... tid a k terk e n a p e n g a r u h d a ri k e g ia ta n la in d a n

a ta u s u m b e r la in ..., (b) k e lu a r d a ri u nit p e n g e lo la a ir l i m b a h .......... tid a k terk e n a p e n g a r u h d a r i keg ia ta n lain d a n a ta u su m b e r lain. This paper

b e l i e v e s t h o s e m o v e w h i c h is m e n t i o n e d b y S e c t i o n 8 ( 2 ) s o m e h o w b r i n g s n o t o n l y to t h e e f f e c t in e l e v a t i n g u p c o m p a n i e s ’ c o s t s , b u t a l s o i n c r e a s i n g

c o m p a n i e s ’ e f f i c a c y in t h e i r p r o g r e s s o f o p e r a t i o n a n d m a n a g e m e n t

c o m p a n i e s ’ p r o j e c t s . M o r e o v e r , S e c ti o n 10 ( 2 ) a ls o m e n t i o n s i t e m s o f companies’ obligation which deal with coal mining activities such as: (a) m e la k u ka n s w a p a n ta u k a d a r p a r a m e te r b a ku m u tu a ir lim b a h ...., (b) m e n g a m b il d a n m e m e r ik sa se m u a ka d a r p a r a m e te r b a ku m u tu lim b a h .... s e k u r a n g -k u ra n g n y a s a tu k a li d a la m sa tu b u la n ... , (c) m e n y a m p a ik a n la p o ra n te n ta n g h a s il a n a lisis a ir lim b a h .... T h o s e t h r e e p r o j e c t s a b o v e in

g e n e r a l m e n t i o n a b o u t c o m p a n i e s ’ d u t i e s in s u c c e s s f u l l y f a c i l i t a t e d t h e

e n v i r o n m e n t a l g r e e n ’s m i s s i o n s b y d o i n g o b s e r v a t i o n , m o n t h l y a s s e s s m e n t , and reporting. Below there will be performed the form of “

B a k u M u tu A ir L im b a h K e g ia ta n P en a m b cm g a n B a tu B a ra — M in in g W aste W a ter-Q u a lities Extent” w h i c h t h i s K e p u t u s a n M e n te r i N e g a r a L i n g k u n g a n H i d u p N o m o r

113 T a h u n 2 0 0 3 e x p e c t s t o b e c o m p l i e d b y c o m p a n i e s f o r t h e n e e d o f reporting synchronizations.

K a d a r m a k sim u m (Parameter)

P a r a m e te r

Satuan

(maximum rate) PH

( A m o u n t)

6 -9 Residu Tersuspensi

400 Besi (Fe) total

M g/1

7 Mangan (Mn) Total

M g/1

Mg/L

B a k u M u tu A ir L im b a h P en g o la h a n /P e n c u c ia n B a tu B a ra - Coal Waste Water o f T h e P r o d u c t i o n a n d W a s h P r o c e s s - Q u a l it ie s E x t e n t

K a d a r m a ksim u m (Parameter)

P a ra m e te r

Satuan

(maximum rate) pH

( A m o u n t)

6-9 Residu Tersuspensi

M g/1

7 Mangan (Mn) Total

B e s i ( F e ) t o ta l

M g/1

4 Volume air limbah maksimum 2m3 per ton produk batu bara

M g /L

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

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

Content Analysis o f Environmental M inister Decree Number 113 Year

a. Transparency

Section

10 ( 2 c ) m e n t i o n s “ m e n y a m p a ik a n la p o ra n te n ta n g h a sil

a n a lisis a ir lim b a h d a n d e b it h a ria n se b a g a im a n a d im a k s u d d a la m h u r u f a dan

b s e k u r a n g -k u ra n g n y a tig a b u la n se k a li k e p a d a B u p a ti/W a liko ta , d e n g a n te m b u sa n G u b e r n u r d a n M e n te r i se rta in sta n si la in y a n g te rk a it s e s u a i d en g a n p e r a tu r a n p e r u n d a n g -u n d a n g a n y a n g b e r la k u ”, which clarifies the clauses of t r a n s p a r e n c y a m o n g c o m p a n i e s ’ a c t i v i t i e s w h i c h d i r e c t l y c o r r e l a t e to th e s o c i e t y . B a s e d o n h t t p : / / w w w . t r a n s p a r a n s i . o r . i d . / m a i a l a h / e d i s i 4 / 4 b e r i t a _ 2 .h t m l

a b o u t P R O P E R , t h i s p a p e r t r i e s to e x p l a i n t r a n s p a r e n c y v a l u e w h i c h is

e m b e d d e d o n S e c t i o n 10 ( 2 ) b y g i v i n g t h e P R O P E R a n a l o g y w h e r e i n it d e a ls with

preservation. As th e illustration, PROPER here believes as media of transparency formalization and

practical implementation

of environmental

a l s o t h e s o c i e t y e n t a n g l i n g , w h e r e i n P R O P E R in t h e o t h e r f o r m , c a n b e s u g g e s t e d a s d e m o c r a t i z a t i o n in c o n t r o l l i n g t h e e n v i r o n m e n t a l c a t a s t r o p h e s t h a t are actively supported by society. Moreover, PROPER as the environmental preserving actions supposes to be legitimate by applying Good Environmental Governance

fairness, accountable, and stakeholders participations. By that illustration above, this paper hopes that S e c t i o n 10 ( 2 ) c o u l d b e s o m e h o w in t h e s a m e d i r e c t i o n a s w h a t P R O P E R h a s ,

i n c l u s i v e r e p o r t i n g a b o u t w h a t f a c t u a l h a p p e n i n g , e v e n t s , a c t i o n s t o w a r d th e s o c i a l e l e m e n t o f w o r l d , w h i c h h e r e c o n s i d e r s a s t h e s o c ie t y . A c t i o n i n c l u d e s in S e c t i o n 10 ( 2 c ) a b o u t e x p o s i n g t h e r e s u l t o f w a s t e w a t e r study

by some means,

a r e t h e w a y in e n t r a p p i n g t h e s o c i e t y to f u l l y m a x i m i z e t h e i r r o l e in p r e s e r v i n g environment and