Pertama Penulis memohon maaf karena progress jurnal yang terhambat dikarenakan :

1. Menggan; topik jurnal “ Pengaruh Internal Audit dalam Fraud Preven;on" karena
feedback “reinvent the wheel” dan sudah banyak yang membahas topik ini.
2. Kesulitan dalam mendapatkan sample data karena penulis ;dak memiliki akses kepada
auditor lainnya
3. Penulis memilih topik PROPER karena saat ini program lingkungan dari pemerintah
menjadi salah satu target utama perusahaan kami (Krakatau Posco Energy) dan memiliki
latar belakang ilmu pengetahuan terkait lingkungan.

The Relationship Between Financial Performance and the Success of

PROPER Compliance."

Abstract:

This research aims to analyze the relationship between a company's financial performance and its
compliance with the PROPER (Program for Rating the Performance of Environmental
Management) in Indonesia. PROPER is a government program that evaluates and ranks
companies' environmental sustainability performance. The study utilizes financial data and
PROPER ratings from a range of registered companies in Indonesia over a specific period (to be
determined later).

Introduction:

Public Disclosure Program for Environmental Compliance, or PROPER, is a prominent

government initiative in Indonesia, drawing significant attention as part of efforts to promote
sustainable practices among companies. PROPER represents a concrete step taken by the
government to address the increasingly urgent environmental challenges of the modern era. This
program plays a crucial role in integrating environmental sustainability into the business sector,
exerting a substantial influence on both companies and society.

PROPER employs a color-coded rating system, with gold indicating the best performance,
followed by green, blue, red, and black for the worst. The primary objective of this program is to
incentivize and encourage companies to enhance their compliance with environmental
management performance. This research seeks to investigate the link between a company's
financial performance and its ability to meet the standards set by PROPER, shedding light on the
broader implications for businesses and environmental sustainability in Indonesia.

Based on SK.1299/MENLHK/SETJEN/KUM.1/12/2022 regarding the 2021-2022 Proper

Assessment Results, it is known that a total of 3,200 companies participated in Proper, consisting
of 1,180 Agroindustry, 1,356 Infrastructure Services Manufacturing, and 664 Mining and Oil &
Gas companies. The Proper assessment results show that 51 companies achieved the GOLD rating,
170 companies received the GREEN rating, 2,031 companies received the BLUE rating, 887
companies received the RED rating, 2 companies received the BLACK rating, and 59 companies
faced legal enforcement/suspension or were not operational.

The proportion of companies meeting regulatory compliance has shown a decline compared to
the previous Proper assessment period. It is worth noting that in the prior Proper assessment
period (Proper 2020-2021), out of a total of 2,593 participants, 2,548 companies were evaluated.
Among these, 1,903 companies, equivalent to 75% of the total, achieved a rating indicating
compliance (Blue, Green, and Red). This group was composed of 1,670 Blue-rated companies,
186 Green-rated companies, and 47 Gold-rated companies.

In contrast, there was an uptick in companies that did not comply with regulations, specifically
those with Red and Black ratings, during the 2021-2022 period. During this time, two companies
received a Black rating, which had not been the case previously, and a total of 887 companies
received a Red rating, compared to 645 companies in the 2020-2021 period.
Referensi :

Al-Tuwajri, S.A., Christensen, T.E. and Hughes II, K.E. (2003) The Relationship Among
Environmental Performance, and Economic Performance: A Simultaneous Equation Approach,
Vol. 9, No. 5, pp.447–471.

KLHK, “Penetapan Peringkat PROPER periode 2020-2021”, Sumber:

(h]ps://proper.menlhk.go.id/proper/berita/detail/348),

Koesnadi Hardjasoemantri, Hukum Tata Lingkungan, ed. VIII, Cet. ke-19, (Yogyakarta: Gadjah

Mada University Press, 2006), hlm. 298

Haninun, Lindrianasari (2018) The effect of environmental performance and disclosure on

financial performance.

Ullman, A.E. (1985) ‘Data in search of a theory: a critical examination of the relationships
among social performance, social disclosure and economic performance of U.S. firms’,
Academic of Management Review, Vol. 10, No. 3, pp.540–557.