ENVIRONMENTAL AUDITING

I.  Subject

A nationwide campaign for the establishment of public awareness on the environmental conservation linked with government proposal on the  sustainable development had been taken in the early 1980s. It was not until 1982 that government introduced  the Law on the Principles of Environmental Management. The legislation dealt exclusively with water pollution had then been authorized under  the Government Regulation Number 20 of 1990 Regarding Water Pollution Control. This was followed by the Ministerial Decree Number 35A of 1995 on The Performance Valuation for Industries.

In the late 1990s, a more powerful legislation was stipulated by Government namely State Law Number 23 of year 1997 Regarding Environmental Management. This, besides displaced the 1982 law aforementioned, has put the Government in a position to protect the environment in a much more comprehensive and effective way than the old once possible.

Nevertheless, the condition is confusing where the environmental legislation as well as associated regulatory controls increased in number, the environmental health on the contrary is downward. As a matter of fact, environmental problems caused by irrevocable exploitation of natural resources seem to be uncontrolled at present. Among them, decreasing water in quality is the one of the significant environmental impact of highly increased of industrial development.

Since 2000, Government has announced a plan of action namely The Clean River Program 2000-2005. The main objective of this on-going program is to protect the river against pollution across the country. One of the rivers that should be covered under this project is River Ciliwung which flows through town of Jakarta. Today, since the environmental audit is now under preparation, the long range effects of that Program are still not known.  

Environmental cases and audit carried out by the Audit Board

►The discharge of waterwaste and other hazardous materials into River Ciliwung is the major cause of environmental problems. The polluters who were identified come from various business activities, such as Hospitals, Hotels, Electronic Industries, Metal Industries, etc.

►Environmental Problems in the Temporary Garbage Disposal Area in Cakung-Cilincing and the waterwaste disposal area in Duri Kosambi and Pulo Gebang caused by negligence on the part of The Management in performing the required Environmental Management Planning.

►In 2001, Audit Board carried out the environmental audit on these in some limited area.

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Audit projects

►Eventhough  the audit which had been performed  in 2001 was not dealt exclusively on water pollution, it was nonetheless considered as an early good step forward.

Audit Scope

►Review the government agencies’ overall report respecting on implementation of Environmental Management Planning between  2000-2001 in pursuance to environmental pollution control regulations.

►The actions of the Regional Environmental Impact Control Board (BAPEDALDA) of Jakarta and  Provincial Government of Jakarta, the first responsible for controlling environmental impact and the second for applying environmental standards were audited.

►Every single audit  performed consumes  averagely 30 days. 

Types of audit

Currently, the Audit Board has such a kind of task force namely Environmental Audit Application Team. Since the organization for environmental auditing within the Audit Board has not yet officially been  created, the audit was carried out by  this team attached to the Performance Audit framework.  

Objectives of audit

►To verify compliance of both government agencies and companies with specific regulations, standards or policies, to the goal for which standards may not exist.

Audit Standard

►Government Regulation Number 20 of 1990 regarding Water Pollution Control.

► Ministerial Decree Number 35 of 1995 regarding The Clean River Program.

► Ministerial Decree Number 35A of 1995 on The Performance Valuation for Industries Ministerial Decree Number 35 of 1995 regarding The Clean River Program.

►State Law Number 23 of year 1997 Regarding Environmental Management.

►Regional Regulation Number 5 of year 1998 about Organization and Management of Regional Evironmental Impact Control Board (BAPEDALDA) of Jakarta.

►Government Regulation Number 27 of 1999 on Environmental Impact Analysis  in section 32  stated that the Regional Environmental Impact Control Board (BAPEDALDA) of Jakarta is to control and to evaluate the implementation  of any company’s Environment Management Planning.

Auditees

►The Regional Environmental Impact Control Board (BAPEDALDA) of Jakarta.

►The Provincial Government of Jakarta.

►Companies.

Audit methodologies

►The procedures implemented for monitoring and reporting of the companies’ required Environmental Management Planning documents was studied,  in which their commitments stated and submitted them to BAPEDALDA of Jakarta, which is responsible for controlling compliance with the environmental policies.   

►The government facilities and tools for environmental  impact controlling were also observed.   

Audit findings

►The BAPEDALDA of Jakarta, with expenditures of more than  Rp199 billions in the last two years (2000-2001), did not perform its jobs effectively in which the environmental damage cases of significant impact  in Jakarta area however remain unsettled.

►The Management of Hotel “HM” was not subject to the Ministerial Decree Number 35 of 1995 regarding The Clean River Program for unauthorized waterwaste discharging.

►The approximately 27 of parameters at the sewage inlet and outlet as well were not detected. These problems caused by unusable waterwaste treatment installation and other six equipments of the water monitoring station of BAPEDALDA of Jakarta.

►According to the Central Board of Statistic database,  there were 2,271 companies operated in Jakarta territory. It was found that  out of a total of 2,271 companies which were categorized as potential environment polluters, the BAPEDALDA of Jakarta only  reported 651. This lack of coordination indicate that the responsible officials in the BAPEDALDA of Jakarta  made performing their duties look effortless.

►Failure to comply with the liquid waste standard, Wira Gufindo Sarana, the company  which was hired to run the Temporary Garbage Disposal Area in Cakung-Cilincing, should be liable for any environmental damage caused.

►In the performance of its duties, The Management of the waterwaste disposal area in Duri Kosambi and Pulo Gebang failed to reach the required standard in compliance with General Guidance for Environmental Management Planning under the State Minister for Environmental Affairs Decree 14 of 1994. Tests have shown that high levels of pollutant such as  chemical oxygen demand (COD), biochemical oxygen demand (BOD), total suspended solids (TTS) and pH parameters  have contaminated the groundwater in its controlled  area.

Audit recommendation and opinions

 ►The Provincial Government of Jakarta as well as its agent (BAPEDALDA of Jakarta) which is responsible for overseeing environmental impact should implement their internal control system, optimizing the use of  their waterwaste treatment installations and other six equipments of the water monitoring station.  

►The provincial environment authorities should take all necessary measures to protect watersupply against restricted materials.

►The companies involved must take account for non-compliance with the environmental regulations by conducting such as legal action against them.

Follow-up audit.

►Audit Board is making preparations for it.