Deputy for environmental pollution and damage control (PPKL) at the ministry, Rasio Ridho Sani, said that the ministry wants PROPER to serve as an external control instrument that can be used by banking partners and investors of participating companies.
“We also hope that PROPER can be used--the information--for business partners of the company, including banks, capital market parties,” he said on the sidelines of the 2025 World Environment Day (HLH) Expo and Forum in Jakarta on Monday.
“So investors, including lenders, can see whether they are working with companies that do have good performance or not,” he added.
He explained that compliance with environmental regulations can be an indicator of overall performance, considering that environmental risk is closely related to financial risk.
Poor environmental performance erodes the trust of financial institutions in a company, and this can ultimately lead to increased loan interest rates due to high risk.
Sani said that companies with poor performance face high legal risks, and are considered high risk by financial institutions.
Companies with poor environmental regulation implementation face the threat of closure, besides litigation costs and very expensive law enforcement costs. There is also the risk of fines and compensation in the event of environmental damage.
According to Environment Ministry data, the number of companies participating in PROPER has increased from 4,495 in 2024 to 5,476 in 2025.
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Translator: Prisca Triferna Violleta, Cindy Frishanti Octavia
Editor: Azis Kurmala
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