The University of Twente, School of Management and Governance

Master of Environmental and Energy Management (MSc)

An assignment title:
Assessment of Hazardous and Toxic Waste Management
&
Application of the CIT
(Implementation in Indonesia)



By:
Faisal Riza
S1509888


October, 2013

I. BRIEF OVERVIEW
Indonesia is one of the developing countries in Southeast Asia. Since 1980s, the
economics of Indonesia has grown until now although had been struck by Asian currency
crisis in 1997. It was the manufacturing industry that had been the driving force behind
Indonesias economic growth until present time. In one hand, the development in industrial
sector is fruitful for Indonesias economic growth. On the other hand, the manufacturing
industry growth raises some environmental problems.
The following list depicts several environmental challenges faced by Indonesia:
- Land conversion (deforestation)
- Air pollution (fume from industrial chimney)
- Water/river pollution (quality and quantity)
- Soil pollution
- Hazardous and toxic waste
- Exhaustion of natural resources and loss on biodiversity

II. HAZARDOUS AND TOXIC WASTE MANAGEMENT
Among many other environmental problems, hazardous and toxic waste management is
one issue that increasingly incurred attention from Ministry of Environment. Based on
Environmental Protection Act No.23/1997, later modified by Act No.32/2009, the authority
has issued a set of implementation directive such as government regulation no.18/85 of
1999 regarding hazardous and toxic waste.

a. Degree of Implementation
The implementation of those regulation and its derivatives conducted through
various instruments, some of them are regulation (prohibition and permit systems),
tradability, incentives, and negotiated agreement. Regulation, the prominent
scheme carried by command and control mechanism, proves its effectiveness in
diminishing negative impacts of industries to the environment. By its nature, the
regulation characteristic legally binds the actors. However, the success in
implementing a regulation strongly relies on the strength of control. Another
approach in dealing with hazardous waste management is carried out by
negotiated agreement.
The complexity of hazardous substances sometimes provokes the dispute whether
certain waste categorized as hazardous or non-hazardous waste. Industries which
generated hazardous waste in their production process may assign the handling of
its waste to a waste processing company. This company should be legalized by
The Ministry of Environment. Both the industry producing the waste and the
company which handle it make an agreement that outline the rights and
obligations of each party. The agreement also allows the waste generated by the
industry is used as the raw material for waste service company. By adopting the
negotiated agreement, the implementation of hazardous waste management tends
to be more flexible. Moreover, the authority also creates systems that supervise
the performance of the actors in hazardous waste handling through regular
surveillance activities. PROPER is one of the effective surveillance mechanism
carried by the government.
The Corporate Performance Rating Program, acronymed in Bahasa Indonesia as
PROPER, is the yearly control mechanism in the form of surveillance activities and
provision to the management of businesses and/or activities. PROPER are done
based on a set of assessment (air pollution, water pollution, hazardous waste
management, and CSR) which it foundation is exist in the Act No. 32 of 2009 on
the Environmental Protection and Management. One of the PROPER
assessments is dealing with hazardous and toxic waste handling. The rating of
business performance is indicated in color: gold, green, blue, red, and black. Gold
is the best performance, whereas black is the worst. The PROPER program
succeeded in driving companies to improve their environmental management
performance. Companies that have participated in the PROPER program between
2009 and 2011 have increased their performance by 25%. In the other words, it
means that the industries also perform the proper handling in hazardous and toxic
waste.

b. Challenges and Opportunities
Aside of its success, the challenges in hazardous waste management still remain.
By applying the negotiated agreement approach, the authority as implementer
group is demanded to be more adept than the target group. The manufacturing
industry is still growing up to now, and It means that the byproduct as hazardous
waste persist. Thus, the key challenges lie in the law enforcement, control
mechanism, and the strong institutional capacity.
However, the opportunities we can take considering the hazardous waste
management are:
- The invention of new technology enables to reduce toxicity level of waste;
- The waste produced abundantly possible to be created as additive in
another product. For example, bottom ash can be used as additive in brick
production; Hazardous waste from automobile manufacturing can be fed
into kiln in cement industry; etc.
- The actors participated agree to do the collaborative works in handling the
waste. It is shown by the intention of the government to revise the
regulation on hazardous waste management in order to make it more
flexible. Recently, The government (The Ministry of Environment together
with The Ministry of Trade) also ratifies the Rotterdam Convention by
issuing statute Number 10/2013 concerning ratification Rotterdam
Convention on the prior informed consent procedure for certain hazardous
chemicals and pesticides in international trade.

III. APPLICATION OF CONTEXTUAL INTERACTION THEORY
By considering the linkage between the policy implementation and the actors, and the
dynamic interactions among them, we can assess the three key variables in contextual
interaction theory:

(a) MOTIVATION
Basically both government as implementer and industries as target group agree that it
is necessary to manage hazardous material came out from manufacturing industry.
The authority is obliged to play its responsibilities in alleviating the negative impacts of
industries, whilst the company also has a good intention to abide by the regulations in
order to make its business sustainable. Hence, the basic assumption in motivation
variable both for implementer group and target group are positive. Mi (+) and Mt (+).

(b) INFORMATION
The companies as target group have sufficient information concerning management of
hazardous waste. Moreover, the government regularly organizes a workshop
regarding the hazardous and toxic waste management. So, we can assume that the
target group recognizes information adequately. I (+).

(c) POWER
As mentioned above, recently waste is viewed as raw material for producing other
goods. It means that from target group sight, waste is not necessarily considered as
liabilities but also as assets. So, it makes opportunity for company to spread its
business in waste processing. From implementer sight, we also can assume that the
power distribution among actors evenly divided. Particularly, by government intention
to revise the current regulation enables the waste producer to delete their waste from
hazardous waste list when they have strong evidence. So, we also can assume that
power variable is positive. P (+).
In conclusion : Mi (+) Mt (+) I (+) Pi (+) means constructive or active cooperation.







IV. REFERENCES

----------------, 2009, The Statute of Indonesian Republic number 32/2009 on prior to
Environmental Protection and management.
---------------, 1999, The Government Regulation number 18/1999 on prior to Hazardous
and Toxic Waste management.
PROPER Secretariat, 2010, Report on Assessment Result The Corporate Rating Program
2010, The Ministry of Environment.
Reliantoro S., 2012, The Gold for Green, The Ministry of Environment.