Research Report on Trends in Environmental Considerations related to Overseas Activities of Japanese Companies FY 1997

How to Use This Book

The structure of this book is shown below.Each chapter and sections within chapters are all independent of one another, and are arranged so as to allow the reader to extract the necessary environmental information in accordance with the current state of environmental initiatives of each company.Please note that the English translations of the names of laws and regulations and organizations used in this book are provisional ones adopted by this Forum.

In Chapter 1, the most recent information concerning the current state of environmental problems and movements in laws and regulations in Indonesia are brought together.Section 1 gives an overview on the whole chapter.Section 2 and subsequent sections are divided by topics and discuss environmental laws and regulations in Indonesia and other information which are essential for Japanese companies to implement environmental measures.Particularly, Section 2, which comments on environmental laws and regulations, presents the features of the new Environmental Management Act enacted in September 1997 as well as the points that need to be taken notice of by Japanese companies.Section 3 discusses measures against water pollution, which is a top-priority issue in Indonesia's environmental conservation.The structure of Chapter 1 is as follows:

• Section 1: Overview of Environmental Problems and Environmental Policies
• Section 2: Environmental Administration, Laws and Regulations Centering on the New Environmental Management Act
• Section 3: Water Pollution Control Measures
• Section 4: Air Pollution Control Measures
• Section 5: Hazardous and Toxic Waste Control Measures
• Section 6: Environmental Impact Assessment System

In Chapter 2, Section 1 outlines the current state of Japanese companies doing business in Indonesia and the features of their environmental conservation activities.The subsequent sections introduces 18 cases of leading initiatives of Japanese companies toward environmental conservation.These cases were collected in the on-site survey, and are separated into four categories: Section 2 for Cases of Complying with Stringent Effluent Standards (4 cases), Section 3 for Cases of Companies Located in Industrial Estates (4 cases), Section 4 for Cases of Various Environmental Conservation Activities (6 cases), and Section 5 for Cases of Establishing Environmental Management Systems (4 cases).Corporate initiatives toward environmental conservation in Indonesia are almost exclusively against water pollution due to its severity among various environmental issues and the priority placed on it in Indonesian environmental policies.Therefore, initiatives to tackle water pollution formed the mainstream of the cases gathered on this occasion.Additionally, it is currently prohibited in principle to locate new factories in existing urban areas in Indonesia, and policies are in place to attract them to industrial estates.Therefore, the cases of environmental measures of Japanese companies located in industrial estates are presented separately as Section 3.

In addition, the following information was recorded at the end of the book as a reference.

• [Appendix 1] The Environmental Management Act of 1997 (Law No.23 of 1997) and its Elucidation
• [Appendix 2] Current Status of Environmental Practices of Japanese Companies in Indonesia and Other Asian Countries (from the 1995 Research)
• [Appendix 3] Trends in International Standards for Environmental Management Systems
• [Appendix 4] Sources of Environmental Information in Indonesia and Japan

Appendix 1 shows the whole text of the new Environmental Management Act discussed in Section 2 of Chapter 1 together with the whole text of the supplementary Elucidation, which is equivalent to a commentary of a law in Japan, while in Indonesia it is positioned as an integral part of a law.