50.4 Percent of Companies Rated Red, KLH Encourages Improvement of Environmental Performance

JAKARTA, GARISBUMI.com – More than half of the companies assessed in PROPER 2024/2025 are still ranked Red. These findings become homework for the business world when the government encourages companies to improve their environmental performance to exceed required standards.

Based on data from the Ministry of the Environment/Environmental Control Agency (KLH/Environmental Management Agency (BPLH)), 2,762 of the 5,476 companies participating in the assessment received a Red rating, or around 50.4 percent.

Meanwhile, 2,265 companies were ranked Blue, 253 companies received Green, and 39 companies received Gold.

The encouragement to improve performance was conveyed in the Socialization of More Than PROPER Compliance 2025–2026 in Jakarta, Wednesday (7/10/2026). This forum emphasizes the importance of reducing emissions, resource efficiency, waste management, and benefits for society.

Director of Air Quality Protection and Management at KLH/Environmental Management Agency (BPLH), Edward Nixon Pakpahan, said that PROPER is not only an instrument for assessing company compliance, but also encourages better environmental performance.

"Through the beyond compliance approach, companies are encouraged to develop innovations in reducing emissions, efficient use of energy and water, waste management, as well as programs that provide benefits to society," explained Nixon.

The beyond compliance approach places compliance with standards as the starting point. Companies are encouraged to continue with innovations that can reduce the impact of business activities on the environment.

Emission Reduction and Resource Efficiency

KLH/Environmental Management Agency (BPLH) noted that the implementation of PROPER 2025 resulted in a reduction in greenhouse gas emissions of 117.6 million tonnes of carbon dioxide equivalent or CO₂e.

In the same period, energy efficiency reached 812.65 million gigajoules (GJ), while water use efficiency was recorded at 207.79 million cubic meters.

This achievement is the basis for the ministry to encourage more companies to develop more efficient business practices while reducing pressure on the environment.

Apart from encouraging innovation, Nixon warned of the consequences of administrative sanctions on ranking results. According to the KLH/Environmental Management Agency (BPLH) explanation, Regulation of the Minister of Environment/Head of Environmental Management Agency (BPLH) Number 7 of 2025 regulates that participants who are subject to administrative sanctions during the ranking process will receive a Red rating.

PROPER Participants Targeted to Increase

PROPER coverage also continues to be expanded. From 85 industries in 1997, the number of companies assessed has now reached 5,476 and is targeted to increase to 6,070 companies by 2026.

The assessment includes controlling water and air pollution as well as managing hazardous and toxic waste (B3). Company self-reporting is also integrated through the Environmental Electronic Reporting Information System (SIMPEL).

Through this expansion, KLH/Environmental Management Agency (BPLH) hopes that environmental management will become part of daily business activities. Companies are encouraged to reduce their environmental footprint while generating economic and social benefits for society.