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Lingkungan Hidup

PT SMART’s PROPER Green Awards shows our commitment to environmental protection and responsibility


Environmental protection has become a top global concern. When Indonesia experienced fire and haze in 2015, the national disaster quickly became an international issue.

The Indonesian government is fully aware of the importance of dealing with these issues. According to Vice President of Indonesia Jusuf Kalla, “Following human rights and democracy issues, environmental preservation becomes the third most prominent issue globally. Therefore, businesses need to be environmentally-friendly.”

Amongst the Indonesian Government programmes to ensure companies take environmental protection into account is the Program Penilaian Peringkat Kinerja Perusahaan or PROPER. This is a system that evaluates companies on compliance with environmental protection and social responsibility standards.

PT SMART along with over 1900 companies from 111 industries took part in this year’s PROPER. We were amongst four companies in the palm oil sector to receive Green PROPER awards (the highest achievable). PT SMART also secured the most awards for its eight Indonesian-based mills with 22 PT SMART-operated mills receiving Blue Rating and none of the company’s mills receiving Red or Black ratings.

PT SMART takes all aspects of the PROPER assessment very seriously as we believe that the programme will help the government drive green economy practices. In addition, the environmental and social indicators rated under PROPER are aligned with GAR’s Social and Environmental Policy (GSEP). In response to the fires and haze of 2015, this year, the PROPER programme was designed to encourage companies to conserve and minimise damage to peatlands, especially through water management.

Head of Compliance and Certification PT SMART Ismu Zulfikar saat menerima penghargaan PROPER dari Kementrian Lingkungan Hidup dan Kehutanan
Head of Compliance and Certification of PT SMART Ismu Zulfikar receiving the PROPER award from the Ministry of Environment and Forestry

The rating system is also a way for the public to evaluate a company’s environmental performance. “Businesses with black rating (must be) announced to the public and brought to trial to be imposed with revocation of permits, punishment, fines, or other legal sanctions. Therefore the public can differentiate between those who are good and bad”, Kalla said.

PROPER spurs improvement

By using PROPER ratings, a company is able to benchmark its performance against its peers and this will hopefully spur it to continue improving its environmental performance.

As PROPER looks at a number of indicators, including the impact of a company’s community development programmes; progress of biodiversity conservation efforts; efficiency of water management; and innovations in emissions reduction, waste management and energy efficiency – companies participating in PROPER can also share their best practices and lessons learned in these areas with their peers.

Through its social programme indicators, PROPER is also encouraging companies to move towards social programmes based on community empowerment, and to go beyond charity or philanthropic campaigns.

At PT SMART, we won’t be resting on our laurels. We’ll be training our staff, strengthening our internal controls and monitoring of our operations, as well as encouraging our suppliers to further improve their sustainability practices as we strive to continuously improve ourselves and our industry.

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