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IMPLEMENTATION OF ENVIRONMENTAL MANAGEMENT
ACCOUNTING AS A FORM OF ECO-EFFICIENCY AT PT. PJB UP MUARA
KARANG
Introduction:
The current national electricity consumption is still relatively low, reaching a quarter of the
indicators of developed countries in the world with 956 Kilowatt-hour (kWh) per capita or 23.9%
of developed countries' electricity consumption of 4000 kWh per capita (Minister of Energy and
Mineral Resources 2017). In fact, electricity consumption has a positive correlation with economic
growth. In the next five years, it is predicted that national electricity demand will increase by an
average of 8.7% per year. This will encourage national economic growth to reach 7-8%.
According to projections of electricity demand from 2003 to 2020 conducted by the System
Planning Office of PT PLN (Persero) and the BPPT Energy Team, it shows that national
electricity demand continues to increase every year. The growth of national electricity demand is
dominated by the industrial, household, business and public sectors.
In mid-2016 the government launched a program to build three units of Steam Gas Power
Plant (PLTGU) which is part of the 35 000 Mega Watt electricity program (PLN 2016). One of the
locations where the construction of three PLTGU units was carried out in the Muara Karang
Generating Unit with a generation capacity of 500 MW. In accordance with Indonesian
regulations, every business plan or production activity that is likely to have a major and important
impact on the environment must have an Environmental Impact Assessment (AMDAL). This is
regulated in Government Regulation No. 27 of 2012 concerning Environmental Permits. In
a d d i t i o n , environmental performance indicators
has been regulated in the Government Regulation on environmental liability accounting in the
Statement of Financial Accounting Standards (PSAK) issued by the Indonesian Institute of
Accountants (IAI). PSAK No. 1 paragraph 9 states that companies must present additional reports
on the environment, especially for companies that use the main resources directly from the
environment.
Meanwhile, to encourage company compliance with environmental regulations, the Ministry
of Environment and Forestry (KLHK) since 1996 has implemented the Company Performance
Rating Assessment Program in Environmental Management (PROPER). PROPER assessment
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criteria include the performance of environmental management systems, energy efficiency, water
conservation, emission reduction, biodiversity protection, 3R of B3 and non-B3 solid waste, and
reducing economic disparities by implementing community empowerment programs. Currently,
companies that have participated in PROPER have reached 1,930 companies consisting of 111
types of companies with a compliance rate of 92%. PROPER ratings are divided into five, namely
GOLD, GREEN, BLUE, RED, and BLACK. The following are the PROPER ratings and
assessment criteria.
Currently, PROPER has been used in the assessment of the company's Key Performance
Index (KPI), a prerequisite for banking analysis, a reference for awarding by other ministries, and
has successfully received appreciation from the World Bank. The PROPER award is given
annually to companies that participate in the evaluation of environmental management
performance organized by the Ministry of Environment and Forestry (KLHK). One of the
companies that managed to get the PROPER award in 2017 was PT Pembangkitan Jawa-Bali as
much as 1 Gold PROPER and 13 Green PROPER.
PT Pembangkitan Jawa-Bali (PJB) is a company engaged in power generation, management,
information technology, and development. PJB was established in 1995, has nine Generating
Units (UP) with a total installed capacity of 7 055 Mega Watts. One of PT PJB's UPs that
currently won the Green PROPER award is UP Muara Karang. UP Muara Karang has successfully
achieved Green PROPER since 2016 to 2017. If the company is able to maintain Green PROPER
within three years, then the company has a greater opportunity to get Gold PROPER in the
following year. PT PJB UP Muara Karang is located at Jl. Pluit Karang Ayu Barat No.1 RT.12 /
RW.03, Pluit, Penjaringan, North Jakarta City. In accordance with the Green PROPER assessment
criteria UP Muara Karang has succeeded in creating environmental excellence and is responsible
for the community more than required. The management efforts that have been carried out by the
company in this case are the procurement of Waste Water Treatment Plant (WWTP), separating
TPS for hazardous and non-hazardous waste, innovating 3R hazardous and non-hazardous waste,
composting, as well as energy efficiency, water, and greenhouse gas emissions.
To improve environmental performance, it is necessary to measure the results of strategy
implementation and performance results every year so that it can be used as a standard for
measuring future performance. In line with this problem, environmental management accounting
(EMA) is considered as the right method in overcoming environmental problems and becoming a
benchmark in assessing the company's environmental performance. The application of the EMA
concept for companies aims to improve the efficiency of environmental management by
implementing appropriate accounting systems and practices by identifying, collecting, measuring,
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calculating, classifying, and analyzing environmental information (physical and monetary).
Currently, increasing attention to environmental friendliness is no longer a burden on the
company, but as a tool used by companies in improving environmental performance and eco-
efficiency values to reduce the company's waste output. To assess environmental performance
against the company's financial performance, the authors conducted research on the application of
EMA in terms of physical environmental management accounting (PEMA) and monetary
environmental management accounting (MEMA). PEMA and MEMA analysis will then be used
as the basis for analyzing the level of eco-efficiency at PT PJB UP Muara Karang.
Environmental Performance:
Environmental performance is a measurable result of the environmental management
system, which is related to the control of environmental aspects and the assessment of
environmental performance based on environmental policies, environmental goals, and
environmental targets (ISO 140001). Meanwhile, according to Ikhsan (2009) environmental
performance is the activities carried out by companies that are directly related to the environment.
Environmental Accounting:
According to Djogo (2006) in Ikhsan (2009), Accounting is an activity that provides
information that is usually quantitative and presented in financial units for decision making,
planning, controlling resources, operations, assessing company performance and financial
reporting to investors, creditors, and agencies authorized to conduct financial supervision or
examination. Therefore, accounting is an art to record, classify, and add up the value of
transactions that have been carried out by the company as part of financial accountability
presented in a systematic form.
Meanwhile, the environment based on Law Number 32 of 2009 concerning Environmental
Protection and Management in Article 1 number 1 is:
"The unity of space with all objects, forces, conditions and living things, including humans
and their behavior that affect the continuity of life and the welfare of humans and other living
things".
According to Djogo (2006) in Ikhsan (2009), environmental accounting is a term related to
the inclusion of environmental costs into the accounting practices of companies or government
agencies. Meanwhile, according to Ikhsan (2009), environmental accounting is the prevention,
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reduction, and/or avoidance of impacts on the environment, moving from several opportunities,
starting from the remediation of events that cause disasters for these activities.
Environmental Costs:
According to Schaltegger (2000), environmental costs are divided into two, namely
internal company costs and external costs. Environmental costs that are internal to the company
include waste handling costs, training costs re l a t e d to environmental issues, environmental
labeling costs, licensing costs, environmental certification costs, and so on. While external
environmental costs include the cost of reduced natural resources, the cost of noise pollution, the
cost of polluted water, and so on.
According to Hansen and Mowen (2009), environmental costs are all sacrifices made by
companies to maintain environmental stability. Environmental costs are basically related to the
cost of products, processes, systems or important facilities that are useful to help make better
management decisions. The purpose of costing is to increase revenue, reduce environmental costs,
and improve environmental performance by paying attention to current and future situations.
Environmental costs can be classified into four categories:
1. Environmental Preventions Costs, costs for activities undertaken to prevent the production
of waste or garbage that can damage the environment (Hansen and Mowen 2009).
2. Environmental Detection Costs, costs for activities undertaken to determine whether or not
the company's products, processes, and activities meet applicable environmental standards
(Hansen and Mowen 2009).
3. Environmental Internal Failure Costs, costs for activities that are performed due to the
production of waste and garbage, but are not discharged to the external environment
(Hansen and Mowen 2009).
4. Environmental External Failure Costs, costs for activities that are performed and produce
waste or garbage into the environment. This cost is divided into two costs, namely realized
external failure costs and unrealized external costs (Hansen and Mowen 2009).
Environmental Management Accounting (EMA):
According to IFAC (International Federation of Accountants) and UNDSD (United Nations
Division for Sustainable Development) in Ikhsan (2009), environmental management accounting
(EMA) is the management of environmental and financial performance through the
implementation of appropriate accounting systems and practices by identifying, collecting,
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measuring, calculating, classifying and analyzing environmental information (physical and
monetary) to support internal and external decision making. Meanwhile, according to Hazardous
Waste Consultant (2005), the benefits of EMA can be categorized into three, namely compliance
efficiency, eco-efficiency, and as an effort for the company's strategic position. The application of
EMA in the company encourages minimizing the environmental problems faced.
Eco-efficiency:
According to Hansen and Mowen (2005): the core concept of eco-efficiency is to maintain
that organizations can produce more useful goods and services while simultaneously reducing
negative environmental impacts, resource consumption, and costs. According to Muller and Strum
(2001), eco-efficiency or clean products are preventive and integrated environmental management
strategies that need to be applied continuously to the production process and product life cycle
with the aim of reducing risks to humans and the environment.
Results of Previous Studies:
Moedjanarko and Frisko (2013) conducted research on environmental cost management in
an effort to minimize waste at PT Wonosari Jaya. The results of this study concluded that the
environmental cost report of PT Wonosari Jaya, shows that this business entity has paid attention
to internal conditions well and this is evident from the results of the report which shows a large
expenditure on the cost of internal environmental failure. PT Wonosari Jaya did not receive
complaints from the community around the factory even though there were no prevention
activities in the business entity. PT Wonosari Jaya is fully accountable for waste disposal actions
by conducting waste management.
Azizah et al. (2013) conducted research on the analysis of the application of
Environmental Management Accounting (EMA) as a form of eco-efficiency (study at PT.
Perkebunan Nusantara X Ngadiredjo Sugar Factory Business Unit, Kediri Regency for the period
2009-2011). The purpose of this study is to analyze the suitability of environmental management
accounting methods with the developing theory, and describe Environmental Management
Accounting (EMA) as a form of eco-efficiency in increasing the company's competitive advantage.
In this study, researchers tried to explain transparently in terms of PEMA (physical) and MEMA
(monetary) related to environmental performance at Ngadiredjo Sugar Factory. The form of EMA
implementation at Ngadiredjo Sugar Factory is seen from the implementation of the EDO program
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in 2010 and IHK in 2011. The result of this research is eco-efficiency at Ngadiredjo Sugar Factory
averaging 30% from the comparison of all environmental performance to financial performance.
Hadi (2012) conducted research on the Analysis of Environmental Accounting
Implementation at PT Istana Cipta Sembada Banyuwangi. This study aims to determine the
application of environmental accounting in the company. The results of this study state that the
costs used to manage waste and its accountability are included in the company's operational
expenses because the company considers the waste generated from production. The company also
reports the management of the waste in the management report which tends to be positive only so
that there has not been an optimal assessment in assessing the company's performance in a
management effort its waste. The company has also implemented WWTP in its waste
management.
Based on the results of the research that has been done, the difference between this research
and some of these studies is that this study examines the effectiveness in applying the concept of
environmental management accounting as a form of eco-efficiency in an effort to improve the
company's environmental performance with more specific research objects and including state-
owned enterprises.
Framework of Thought:
Since 1995, the Ministry of Environment and Forestry (KLHK) has implemented the
Company Performance Rating Program in Environmental Management (PROPER). The program
is implemented to encourage company compliance with environmental regulations in achieving a
green economy. Currently, companies that have participated in PROPER have reached 1,930
companies consisting of 111 types of companies with a compliance rate of 92%. PROPER ratings
are divided into five, namely GOLD, GREEN, BLUE, RED, and BLACK. One of the companies
that managed to get the PROPER award in 2017 is PT. Pembangkitan Jawa-Bali as much as 1
Gold PROPER and 13 Green PROPER. PT.
Thus, in this study, researchers tried to explain transparently in terms of Physic
Environmental Management Accounting (PEMA) and Monetary Environmental Management
Accounting (MEMA) at PT PJB UP Muara Karang. PEMA and MEMA obtained will be used as
the basis for analyzing the level of eco-efficiency at PT PJB UP Muara Karang. Environmental
Management Accounting is a strategy in improving the environmental performance of companies
that care about environmental conditions and friendliness, no longer a strategy that is only used to
fulfill corporate social responsibility. Increasing attention to environmental friendliness is no
longer a company burden, but a tool used in increasing eco-efficiency to reduce output waste at PT
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PJB UP Muara Karang. The following is the flow of the framework in this research in full.
Data Collection:
The type of data that will be the material to be studied consists of two types of data, namely
primary data and secondary data. Primary data is data obtained directly from the original source
by conducting interviews directly with parties who have the authority to provide information on
existing problems in the company to be studied. Primary data that will be used in this research is
taken by conducting structured and in-depth interviews with company managers or representatives
in this case, namely the environmental management section. In addition to conducting interviews,
researchers will make direct observations of the application of environmental management
accounting as a form of eco-efficiency at PT Pembangkitan Jawa-Bali UP Muara Karang.
Meanwhile, secondary data is data obtained indirectly from the source and is used as a
complement to primary data. In this study, the secondary data required include:
1. Company Profile of PT Pembangkitan Jawa-Bali Muara Karang Generating Unit.
2. Data on the calculation, cost assessment, and allocation of sewage treatment in financial reporting
for the period 2014 to 2017.
3. Data on the types of waste and their management procedures, along with the financing process in
the budget for the period 2014 to 2017.
4. Data regarding PT PJB UP Muara Karang's program in implementing environmental management
accounting.
5. The annual financial report of PT PJB UP Muara Karang for the period 2014 to 2017.
Data Analysis Method:
The data analysis method used in this research is descriptive analysis method, namely the
researcher describes the results of his findings derived from the data collected through the
observation process at the object of research which will then be compared with the theoretical
application method that has been developing in the academic community. Descriptive analysis is a
form of data analysis to test the generalization of research results based on one sample and using
one or more variables but is independent (Misbahuddin and Hasan 2013). In this study, descriptive
analysis was used to analyze the suitability of environmental management accounting methods.
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Compared step by step in the application of environmental management accounting (EMA) as a
form of eco-efficiency in increasing the company's competitive advantage.
Data Analysis Technique:
Data analysis conducted by researchers begins with collecting data using several methods,
namely document collection in the form of written or electronic documents (soft files) from
institutions or institutions that are the object of research.
The purpose of data analysis is to simplify the data into a form that is easy to interpret and
easy to understand and adjust it to the existing theory. The author processes and analyzes the data
through several stages as follows:
1. Collecting and analyzing data that has been obtained including, among others, the Company
Profile of PT Pembangkitan Jawa-Bali UP Muara Karang, data on the use of corporate
environmental costs and waste management allocations in the financial statements, data on the
types of waste and management procedures accompanied by the financing process in the
budget, data on the PT Pembangkitan Jawa-Bali UP Muara Karang program in implementing
Environmental Management Accounting (EMA), as well as the company's annual financial
report using descriptive analysis.
2. Analyzing the application of environmental management accounting (EMA) in terms of
physical environmental management accounting (PEMA) in the waste treatment process,
energy efficiency, social responsibility, reforestation, and biodiversity programs carried out
by the company. There are five combinations of approaches that are carried out
comprehensively according to Berry and Rondinelli (1999), namely:
a. Reduce and prevention for waste, is a way to minimize and prevent waste in order to
protect the environment more effectively by carrying out preventive activities against
useless activities.
b. Demand side management is an activity that leaves no product waste. Sell according to
the amount of consumer needs and make consumers more efficient in using the product.
c. Design for environment is an integral part of the pollution prevention process in the
production process.
d. Product stewardship, is a product alternative that has less pollution and alternative
materials, energy sources, processing methods that reduce waste become a necessity for
companies.
e. Full cost accounting, identifies and quantifies the environmental cost performance of a
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product, production process and project by considering four kinds of costs, namely: direct
costs, indirect costs, unexpected costs, and hidden costs.
3. Grouping and calculating environmental costs used by companies in managing environmental
programs and innovations. Grouping using environmental cost grouping categories according to
Hansen and Mowen (2009), namely prevention costs, environmental detection costs, internal failure costs,
and external failure costs.
4.
Company Overview:
PT Pembangkitan Jawa-Bali (PJB) is a subsidiary of PT PLN (Persero) which was
established on October 3, 1995. PT PJB underwent two restructurings so that two subsidiaries
were formed, namely PT PLN Pembangkitan Tenaga Listrik Jawa Bali I and II (PJB I and PJB II),
each of which has its head office in Jakarta and Surabaya. Then, in 2000 PT PLN (Persero)
changed the name of the two subsidiaries to PT PJB and PT Indonesia Power (IP). Currently PT
PJB manages 9 generation units (UP) namely UP Gresik, UP Paiton, UP Muara Karang, UP
Muara Tawar, UP Cirata, UP Brantas, PLTMG Bawean, and PLTS Cirata, and PLTD Suppa. The
total installed capacity to date has reached 7 055 MW, consisting of Steam Power Plants (PLTU),
Gas Power Plants (PLTG), Gas and Steam Power Plants (PLTGU), and Hydroelectric Power
Plants (PLTA). In addition to managing electricity generation, PT PJB also manages a number of
business units such as management, information technology, and development units.
Muara Karang Generating Unit was first operated in 1979. Initially managed by PLN
Pembangkit dan Penyaluran Jawa Bagian Barat (KITLUR JBB), known as Muara Karang sector.
As a result of restructuring twice the Muara Karang sector has changed its name until now to PT
PJB UP Muara Karang. The total capacity that has been installed and operated by UP Muara
Karang reaches 1610 MW which occupies an area of 32 Ha. In 2016 PJB UP Muara Karang is
building a 500 MW PLTGU to support the electricity program.
35,000 MW launched by the government. The types of power plants operated by Muara Karang
UP include PLTU unit 4 with a capacity of 200 MW fueled by oil/gas, PLTU unit 5 with a
capacity of 200 MW fueled by oil/gas, PLTGU block 1 with a capacity of 500 MW fueled by
oil/gas, and PLTGU block 1 with a capacity of 500 MW fueled by oil/gas. The new 710 MW gas-
fired PLTGU block 2 was commissioned on February 2, 2011.
PJB realizes that without the vision and mission of the company, the strategies and programs
implemented will not be realized. Therefore, the following is the vision and mission of PT PJB:
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a. Vision
To be a trusted company in the integrated generation business with world-class standards.
b. Mission
1. Providing solutions and added value in the integrated generation business to maintain
national electricity sovereignty.
2. Running a quality, competitive and environmentally friendly generation business.
3. Develop Human Capital competencies and productivity for sustainable growth.
PJB UP Muara Karang is located at Jl. Pluit Karang Ayu Barat No. 1, RT. 12/RW. 3,
Pluit, Penjaringan, North Jakarta City, Special Capital Region of Jakarta, 14450. The
existence of the generation center owned by PT PJB UP Muara Karang is considered very
important, because it serves important state facilities (VVIP) such as the State Palace, MPR /
DPR Building and Government Offices, as well as Jakarta's increasing electricity needs. The
following is the organizational structure of PT PJB UP Muara Karang.
Electric Power Production Process of PLTU and PLTGU:
1. Production Process of Steam Power Plant (PLTU)
The PLTU electricity production process requires main equipment and/or facilities that
support each production process. The main equipment used are boilers, turbines, and generators,
while for supporting facilities there are desalination plants and denim plants. The raw material
used in the electricity production process is seawater which is used as cooling water or boiler
water. First seawater enters the intake canal and chlorine injection occurs. In the intake canal
there is a filter in the form of a plane bar screen and traveling screen which functions as a filter
for objects that are carried along with the sea water. After that the water will be pumped from the
circulating water pump (CWP). In CWP there are two types of lines, the first goes into the
desalination plant for the salinity reduction process (mineral reduction), and the other will enter
the cooling system. Then the water enters the tank system and raw water tank. Raw water in the
raw water tank will be processed back into the denim plant, because if the mineral content enters
the system it can damage equipment such as generators or turbines.
In general, the electricity production process begins with seawater that is first processed
into fresh water in a desalination plant, then reprocessed in a denim plant so that the water meets
the standards as boiler water. After the water is collected in the boiler, the water will be heated
using fuel oil or gas. The steam generated from the water heating process will be flowed into a
turbine with a certain pressure that will move the generator and produce electricity. The electricity
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produced will be connected to the Java-Bali electricity system.
2. Production Process of Gas and Steam Power Plant (PLTGU)
PLTGU is a combination of PLTG and PLTU or commonly known as a combine cycle. The
main equipment needed in this system includes a gas turbine with generator, Heat Recovery Steam
Generator (HRSG), steam turbine with generator, and other supporting facilities. In the process of
producing electricity at the PLTGU, it is usually called the Open Cycle, where air will be
compressed so that it has pressure. Then the air enters the combustion chamber and is mixed with
gas or oil fuel, thus producing hot air (steam) which will move the turbine and generator which
will produce electricity. The remaining combustion in electricity production produces high
temperature exhaust gas (+/- 500o C) which is used to heat water in the HRSG to produce steam
that will drive turbines and generators t h a t will produce electricity. The electricity produced will
be distributed to the Jakarta and Java-Bali electricity systems.
Liquid Waste Management Efforts:
In managing liquid waste, the company makes several efforts including the following:
1) Waste Water Treatment Plant (WWTP) In the processing process there are several installations,
namely chopsticks, oil flotation, waste water storage pond (WWSP), oxidation pit, coagulant and
floculant, clarifier, neutralizing pit, clear pit, sand filter, and effluent pit. Based on research in the
field that the company has not calculated the depreciation costs of each installation unit, so it
cannot be known how much the economic life of each WWTP installation unit is. As for the flow
of the wastewater treatment process in WWTP can be seen in the picture in the attachment, and
the following are activities in WWTP.
First, the wastewater from the remaining production is collected in a chopstick. This sump
has a bar screen that serves to filter and remove discrete particles (large trash) or objects that can
damage the wastewater pump. Afterward, the wastewater will be separated from the oil and sludge
deposited in oil flotation. The oil on the surface of this tub will flow to the oil tank and the water
that has been separated from the oil will go to the WWSP unit, while the sludge will go to the
thickener tub. At
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WWSP occurs an aeration process to contact as much as possible the surface of the liquid with air
so that turbulence occurs between the two. This process serves to remove ammonia substances
(NH3 ) in wastewater.
The next process occurs in the oxidation pit installation unit which functions to neutralize
wastewater by adjusting the pH level of the water entering the Coagulant / Floculant tank. In the
Coagulant tank, water is mixed with polyaluminum chloride coagulant from the chemical tower,
and the Floculant tank functions to unite colloidal particles that have coalesced in the coagulation
process to become larger. After the coagulation and flocculation process is complete, the water
will move slowly and uniformly in the settling basin (clarifier), then the sludge at the bottom will
be pumped into the thickener tub and the wastewater will go to the neutralizing pit. In the
neutralizing pit tub, monitoring of the pH value of the wastewater is carried out, and the
wastewater will be collected and rechecked against the pH value level in the clear pit tub before
flowing into the sand filter.
The sand filter functions to filter using sand to separate suspended solids from the treated
water, the water from the backwash results will be recirculated to the WWSP. Then, the
wastewater will be collected in the effluent tank which is the last reservoir after the physico-
chemical treatment process. This basin serves as a monitoring point for checking wastewater
quality data whether it meets quality standards. After the treatment process is complete, the
wastewater will be discharged directly into the sea.
2) Sludge treatment (Thickener and Filter Press):
Sludge from oil flotation and clarifier will be collected into the thickener tub. In the
thickener tub there will be a mud thickening process using a mud scrapper, after the mud is
compacted the mud will go to the filter press and the separated water will be flowed back to the
WWSP. The sludge in the filter press is not completely free from moisture content, so in this tool
the moisture content still contained in the sludge will be removed and the sludge will be dried,
then the dried sludge will be put into sacks and stored in the B3 (Hazardous and Toxic Material)
waste storage area.
Efforts to manage hazardous and non-hazardous waste:
Efforts made in managing B3 and Non-B3 waste, namely B3 and Non-B3 Temporary
Disposal Sites (TPS), 3R innovation (reduce, reuse, recycle) B3 and Non-B3 waste, and
composting. The three programs in 2015 began to be carried out continuously so that in the
following year the company has felt the benefits, namely starting to reduce the output of B3 and
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Non-B3 waste which is directly proportional to the reduction in processing costs. The following
are the efforts made in managing the waste including:
1) TPS (Temporary Disposal Site)
TPS owned by PT PJB UP Muara Karang is located at two points, for B3 waste 3R waste is
next to the WWTP and for non-B3 waste is next to the intake canal. This TPS is managed in
accordance with Law No. 18 of 2008 in regulating the amount and type of waste, sanitation,
health, and environmental aesthetics. The B3 waste TPS building has a permit according to DKI
Jakarta BPTSP Decree No. 89-16 which will then be transported by a 3rd party. In 2014 to 2016,
the transportation of Non-B3 solid waste was carried out within a p e r i o d of 4 to 7 days per
unit, so the costs incurred for waste transportation were very expensive. Respectively, the cost of
non-hazardous waste transportation in 2014, 2015, and 2016 amounted to IDR 840,000,000, IDR
780,000,000, and IDR 905,000,000. At the beginning of 2017, the company succeeded in
switching cooperation with an organization that agreed to transport waste directly from the three
units in the company, thus successfully cutting transportation costs to Rp350,000,000. In addition
to the cost of transporting w a s t e , other costs incurred are the cost of labor for managing the
TPS and the cost of hazardous waste treatment equipment.
2) Hazardous Waste 3R Innovation
PT PJB UP Muara Karang consistently innovates to improve the performance of 3R (reduce,
reuse, recycle) hazardous waste so that the generation of hazardous waste becomes as minimal as
possible. The 3R B3 waste innovation program being carried out by the company is the
substitution of Heat Recovery Steam Generator (HRSG) insulation material from Rockwool (B3)
to Aerogel (Non B3). The addition of a cooling system that uses aerogel as insulation in the
HRSG Process Input Output Module makes the temperature signal reading accurate, so it does not
cause operating disturbances such as trips (unit shutdown) or derating (decreased production
capacity). However, if a disturbance occurs and causes the STG unit (105 MW) to shut down, then
as many as 80 770 households (1300 VA/KK) are not served with electricity and the company
suffers a loss of Rp147 000 000 per hour. This innovation program has succeeded in reducing the
dominant hazardous waste generation by 2 304 tons and hazardous waste transportation costs by
Rp 17 921 000 in 2016. The program has gained recognition from aerogel vendor PT Aspen Indo
Aeroteknika as the first company to use aerogel as heat insulation in HRSG or boilers.
3) 3R Non hazardous solid waste
In this program the company extended the overhoul interval from once a year to once every
4 years by upgrading the combustor material (combustion) so that the material lasts for 32 000
Equivalent Operation Hour (4 years) without the need for maintenance (overhoul). In addition to
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reducing maintenance costs, the program can improve the readiness of the generating unit to
operate, increasing the power generated by 0.55 Gwh/year. This innovation program was only
implemented in 2016, so the positive impact began to be obtained in 2017. Where in 2017 the
company can save on the purchase of spare parts for replacing TL and Fluorescant lamps to LEDs
amounting to Rp18 146 000 000. With these savings, the generation of non-B3 waste in the form
of metal or metal can be reduced by 2.26 tons / year.
4) Composting
The company started this program in 2015. Composting is managed by 7 workers who also
manage non-hazardous solid waste and hazardous waste. In its production, waste is chopped using
a tool, after which the waste is mixed with MOL and stirred until evenly distributed and the waste
is stored in an airtight room. Within one week, repeat the steps of stirring and spraying MOL. This
program has successfully reduced organic domestic waste generated by the company. The amount
that has been successfully produced from this composting successively from 2014 to 2017
increased respectively by 0.32 tons, 2.93 tons, 3.91 tons, and 3.34 tons. The costs incurred in
composting include labor costs, and operational costs of purchasing materials used in composting
activities. Composting costs are constant annually at IDR 30,000,000 which is spent on the
purchase of equipment and materials needed in compost processing. However, these costs do not
include the cost of tool maintenance, because the company has not calculated depreciation costs
for tools used in the composting program.
Implementation of Environmental Management Accounting (EMA):
A. Reduce and Preventation for Waste
PT PJB grows and develops with various business fields, without leaving corporate social
responsibility for the realization of community independence and environmental sustainability in
accordance with Law No. IX.
32 Year 2009 on Environmental Protection and Management. As one of the generation units
owned by PT PJB, UP Muara Karang has done several ways in an effort to handle its production
waste. The main source of waste at PT PJB UP Muara Karang is wastewater that comes from oil
spills or contaminated water from the gas turbine generator area of PLTU units 4 and 5 and
PLTGU block 2. The following efforts are made by the company in preventing and minimizing
waste.
1) Liquid Waste
The characteristics of liquid waste produced by PT PJB UP Muara Karang can be known by
testing liquid waste parameters which are carried out once a month and in collaboration with third
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parties. The results obtained from the test can be used to determine whether the liquid waste
management unit of PT PJB UP Muara Karang has met the standard standards set by the
government in the Decree of the Minister of Environment No. 04.23.10.
Figure 8 states that the liquid waste generated by the company tends to fluctuate, from 2014
to 2016 the volume of liquid waste generated continued to increase, while in 2017 it decreased.
The increase in the volume of liquid waste is caused by several factors such as total water usage
for production and support activities, maintenance, or unit projects. In 2015 the volume of liquid
waste increased by 40 221.20 m3 (up 4.70%) higher than in 2014. Likewise, in 2016 liquid waste
continued to increase by 52 036.00 m3 (up 29.37%) over 2015. This made 2016 the year with the
largest increase in liquid waste volume of the last four periods, as for the cause is the increase in
total water usage of 290 129.36 m3 (up 24.66%) due to the start-stop operation pattern carried out
by the company. However, in 2017 the volume of liquid waste managed to decrease to 43 557.19
(down 16.29%) from 2016.
The following is a picture of the liquid waste management costs incurred by the company in
the period 2014 to 2017.
Figure 9 shows that the costs incurred by the company in managing liquid waste averaged
per year from 2014 to 2017 amounted to IDR 376 275 000. In the last four years the costs incurred
by the company for liquid waste management have fluctuated. This is directly proportional to the
increase in the volume of liquid waste. Therefore, it can be said that the company's efforts in
reducing and managing waste as a corporate responsibility are quite good. In 2016, environmental
costs increased by Rp 487 682 000 (up 63.96%). The increase was due to the maintenance of the
waste water treatment plant (WWTP), the purchase of WWTP chemicals, and the transition of
third-party cooperation for Liquid Waste Analysis Services which caused the analysis costs to
increase dramatically. The company still has not grouped environmental costs specifically, such as
in the purchase of WWTP chemicals that are safety stock, the company includes these costs in
environmental costs. In fact, these costs should be included in the inventory cost group.
2) Hazardous waste and non-hazardous solid waste (domestic waste)
The next effort made by PT PJB UP Muara Karang in handling the waste generated by the
company is through temporary disposal facilities (TPS), 3R innovation for non-B3 and B3 solid
waste, and composting. Hazardous and toxic waste generated by the company includes used
lubricating oil, chemical cleaning, contaminated waste, refractories (rockwool), Waste Water
Treatment Plant (WWTP), batteries, used B3 packaging, used cloth, electronic waste, laboratory
waste, and chimney waste. Meanwhile, domestic waste comes from internal (10%) and external
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(90%) unit activities. Internal sources come from around the company's administration building,
while external sources come from domestic waste from the Water Intake. The condition of waste
at the Water Intake depends on the surrounding waters, namely Kali Karang and the Jakarta Sea.
The following is the volume of domestic waste and hazardous waste generated by PT PJB UP
Muara Karang.
Figure 10 states that the volume of hazardous and toxic waste in the last four years has
fluctuated greatly. Where in 2015 the volume of B3 waste experienced a very significant decrease
of 101.43 tons (down 64.19%) over 2014. This is because in 2015 the implementation of
continuous improvement of the B3 waste 3R innovation program began. In 2016 B3 waste
increased by 118.06 tons (up 16.40%), so the company carried out a waste study unit project. And
in 2017 B3 waste decreased again by 101.28 tons (down 14.21%) over 2016.
Whereas for Non B3 waste from 2014 to 2017 successively continued to decrease by
1,452.21 tons (down 23.30%), 1,058.72 tons (down 27.10%), and 713.82 tons (down 32.58%)
over the previous year. This is because every year improvements are made to the composting
program and the 3R innovation of Non-B3 waste that is being carried out by PT PJB UP Muara
Karang. The following are the costs incurred by the company in managing hazardous and non-
hazardous waste:
Figure 11 shows the amount of environmental costs incurred by companies to treat B3 and
Non-B3 waste with an average per period from 2014 to 2017 of IDR 1 531 478 750, and tends to
fluctuate. The last four years the cost of managing hazardous and non-hazardous waste has
increased in 2015 and 2016 by IDR 1 602 000 000 (up 19.80%) and IDR 1 602 000 000 (up
19.80%).
886 768 000 (up 17.78%). This is because in 2015 the company procured the purchase of oil
dispersant and oil cleaner for hazardous waste treatment, while in 2016 the company carried out a
waste study project, TPS management and hazardous waste management equipment, and in both
years the company experienced swelling costs of transporting Non B3 solid waste. In 2017, there
was a decrease of Rp1 299 900 000 (down 31.10%), because in that year the 3R program for
hazardous and non-hazardous solid waste was running quite well, and there was no procurement
of oil dispersant and oil cleaner.
B. Demand Side Management:
PT PJB UP Muara Karang in this case only produces electricity as its main product. The
company makes sales according to the number of consumer needs and makes consumers more
efficient in using the product.
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C. Design for Environment
All operational activities of PT PJB UP Muara Karang have implemented the ISO 14000
environmental management system, and have been internationally certified by Transpacific
Certification Limited since 2004. One of the forms of responsibility carried out by the company is
to reduce the impact of production by implementing improvements at the design stage (Design for
Environment). The following are PT PJB UP Muara Karang activities related to improvements in
the design stage:
1) Energy Efficiency
PT PJB UP Muara Karang has made several energy efficiency program innovations which
are said to be successful, because currently the company's energy usage intensity position against
similar industries at the national, Asian and worldwide levels has succeeded in being in the < 25%
World group.
Figure 12 states that from 2014 to 2017 the company succeeded in making energy efficiency
of 1 079 230 GJ, 3 676 360 GJ, 6 191 370 GJ, and 6 960 520 GJ or with a ratio of 1.49%, 5.08%,
8.99%, and 22.28%. The energy efficiency innovation program is the redesign of the low pressure
steam regulating valve STG 1.0 PLTGU as a form of effort to improve efficiency and pollution
prevention with an increase in performance of 25 MW per 24 hours of operation. This program is
designed to reduce hydraulic oil leakage, currently the company has succeeded in reducing oil
leakage by 208 liters / year and saving costs worth Rp82 445 220 000 in 2016. Costs incurred in
implementing the program included the cost of making manifolds, tension rods, piston rods,
stoper spring removal and assemblies amounting to Rp91 000 000 in 2015. The cost was used as a
long-term investment by the company. This energy efficiency innovation has been recognized
within the PLN Group as the third winner of the West Java regional level in 2016.
2) Water Efficiency
The company continues to develop a water efficiency innovation program as an effort to
minimize the use of inputs, especially saving the use of production raw materials. The savings
made by the company also have an impact on reducing the WWTP load, because the wastewater
discharge from blowdown will be less.
Figure 13 states that the company's water efficiency has continued to increase in the last four
years by 175.20 m3 , 33.933.59 m3 , 40 724.10 m3 , and 55 105.7 m3 . One of the water efficiency
programs that the company has carried out is evaluating the standard value of the silica parameter
in the boiler blowdown opening process from 0.2 to 0.7 PPM. This evaluation results in better and
longer water quality in the HRSG and boiler so that it can save the use of process water as much
as 25 162.92 m3 in a year and save costs of Rp1 066 516 800 / year. In addition to this program,
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the company also conducted a rainwater collection program, cooling the IO module, redesigning
the cooling water system, and retubing the HRSG PLTGU block 1.
3) Emissions and Greenhouse Gas Efficiency
The reduction of emissions and greenhouse gases is a follow-up to PJB UP Muara Karang's
commitment in dealing with climate change issues. The following is the ratio of emission and
greenhouse gas reduction results both related to the main activities and supporting activities.
Figure 14 shows that each year the company's emissions and greenhouse gas efficiency
continues to increase. In the period from 2010 to 2017 the company has succeeded in reducing
99.30% of SO emissions2 , 55.54% of total particulate emissions, 63.62% of NO emissionsx , and
56.25% of CO emissions2 equivalents. The program in reducing emissions and greenhouse gases
is a modification of the start-up procedure for steam turnine generator 1.0 by utilizing residual
steam from high pressure steam to replace the combustion function in the auxiliary boiler by
1.18 tons/hour. By conducting this program, the generation operation is able to eliminate CO2
emissions from HSD combustion as much as 1 600 L equivalent to
4 189.33 Kg CO2 every start up process, and can save the energy required to turn the turbine worth
Rp1 300/Watt or equivalent to Rp111 656 000 for the energy saved in 2016.
4) Greening
The increasing concentration of pollution in the air, the decreasing ability of the soil as a
water catchment area, and the decrease in the aesthetic value of the power plant construction are
one of the sources of impact felt in the area around the generation area. In accordance with
Minister of Public Works Regulation No. 5/PRT/M/2008 concerning Green Open Space, PJB UP
Muara Karang continues to conduct greening in a sustainable manner. Greening activities are
carried out by the company through planting and maintaining trees in the power plant area. Care
and maintenance of parks and plants are carried out continuously both old and new plants to be
planted. Based on the results of the inventory of plant diversity in the PJB UP Muara Karang
Private Concentration Area, there are 451 species of plants which are divided into three locations,
namely the working area (PLTU and PLTGU) as many as 200 species, Kali Adem location as
many as 34 species, and Cibunian Village location as many as 255 species. The following are the
costs issued by the company in the realization of reforestation and biodiversity conservation
programs.
Figure 15 states that the increase in costs in 2016 and 2017 amounted to Rp750 000 000 and
Rp3 490 000 000, due to the fact that in this year the company conducted KEHATI monitoring,
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management of private conservation areas, and increased the cost of planting and plant
maintenance in PLTU and PLTGU. One of PJB UP Muara Karang's reforestation (Biodiversity
Improvement) programs is the Clean Jakarta Bay program, carried out to improve the ecosystem
in the Kali Adem area which is one of PJB UP Muara Karang's private concentration areas. This
program in collaboration with Muara Angke Mangrove Community (KOMMA) in 2010 began
with planting 1,000 mangrove trees, then replanting in 2014 and 2018 until now there are 27,000
mangroves.
At the Kali Adem location, the company also established an anthropod insect observation
site which has succeeded in increasing the anthropod species diversity index (H') from 2.48 in
2016 to 3.18 in 2017, where if H'>3 then the diversity value is already high. In the program, not
only mangrove planting and or anthropod insect observation sites, but there are several other
programs such as silvofishery ponds, mangrove fruit processing, and mangrove seedling
procurement which began in 2016.
D. Product Stewardship:
The products produced by the company come from the management of environmentally
friendly production processes that can be seen at PT PJB UP Muara Karang. Post-production
activities are also managed and processed quite well. The following are the main products of the
company.
Not only the main products produced, the company also innovates in the utilization of
company waste including:
1) Composting activities that produce products in the form of solid fertilizers and are used in
fulfilling one of the needs of greening activities in the work environment (PLTU and PLTGU).
2) Utilization of non-B3 waste (aerogel) as heat insulation in HRSG or boiler. PT PJB UP Muara
Karang is one of the first companies to use aerogel as an accurate temperature signal reading so
that it does not cause operating disruptions such as trips (unit shutdown) or derating (decreased
production capacity), thereby reducing the output of B3 waste.
Implementation of Environmental Cost Accounting:
Environmental costs according to PT PJB UP Muara Karang are all costs related to
environmental activities that have the potential to spend resources financially and will be
recognized as environmental costs. PT PJB UP Muara Karang has issued costs related to
environmental activities, in accordance with the theory of Hansen and Mowen (2009). In
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presenting environmental costs, the company adheres to the normative model, where the company
recognizes environmental costs as a whole within the scope of one general account space along
with other allied accounts. These allied costs are inserted in certain sub-units of cost accounts in
the monthly financial statements, while in the annual report the company records environmental
costs as one unit in maintenance costs. Meanwhile, the recording and preparation of the company's
financial statements adheres to the cash basis accounting model where costs are reported when
money is paid.
Table 4 shows that the environmental costs incurred by PT PJB UP Muara Karang continue
to increase from year to year, this shows that the company's performance is increasingly
concerned about environmental quality. PT PJB UP Muara Karang views the maintenance and
improvement of the environment as something that needs to be considered. The company strives
to reduce the environmental burden on every product life, starting from the production process,
maintenance, and waste treatment. The company carries out environmental responsibility in
accordance with one of the company's missions, namely running a quality, competitive and
environmentally friendly generation business in order to make a trusted company in the integrated
generation business with world-class standards.
The results of field analysis show that PT PJB UP Muara Karang suppresses environmental
costs on environmental detection costs and internal failure costs. Environmental detection costs
have increased every year, as seen from 2015 over 2014, an increase of IDR 1,429,388,000 (up
from the previous year). 60.20%), the change in 2016 over 2015 increased by Rp1 716 786 000 (up
20.11%), and the change in 2017 over 2016 still increased by Rp1 855 780 000 (up 8.10%).
Although each year there is an increase in costs, the percentage increase has decreased
significantly, or it can be interpreted that the increase in environmental detection costs is not too
much.
The cost of internal failures fluctuates. There were changes in 2015 over 2014, an increase
of Rp265 753 000 (up 17.81%), due to the procurement of oil dispersant and oil cleaner used in
the treatment of B3 waste, which increased from the previous year. In 2016 over 2015 there was
another increase of Rp437 738 000 (up 25.00%), due to the maintenance of WWTP facilities, B3
and non-B3 TPS, as well as the cost of shipping non-B3 solid waste to third parties, and the
purchase of liquid waste treatment chemicals. Whereas in 2017 over 2016 there was a significant
decrease of Rp695 651 000 (down 31.78%), due to the fact that the procurement of oil dispersant
and oil cleaner was not carried out, and the purchase of liquid waste treatment chemicals was less
than the previous year because the liquid waste treatment chemicals used by the company were
safety stock.
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Environmental Management Accounting as a Form of Eco-Efficiency:
In the calculation of eco-efficiency, it is necessary to identify between environmental
performance at PEMA and financial performance at MEMA. Where both of these are part of
environmental management accounting. The following are the results of the identification of
PEMA and MEMA conducted at PT PJB UP Muara Karang.
1. Physic Environmental Management Accounting (PEMA)
PEMA is a flow of physical use in the form of inputs and outputs at PT PJB UP Muara
Karang. The first is the input used by t h e company for environmental management carried out by
the company so that the non-product output produced can decrease and the costs incurred
decrease. PEMA at PT PJB UP Muara Karang includes.
a. Raw materials
The raw materials used by the company are raw materials that come directly from nature,
namely seawater. The use of water in the production or post-production process always increases
every year, except in 2017 when it decreased. The increase in total water usage is directly
proportional to the amount of electricity produced, the more electricity produced, the more water
used. The following are the raw materials used by PT PJB UP Muara Karang from 2014 to 2017.
b. Energy
The energy use of PT PJB UP Muara Karang tends to fluctuate, experiencing an increase in
2015 over 2014, and experiencing a decrease in the following two years, namely 2016 and 2017.
This is because in 2016 an energy efficiency innovation program was carried out in increasing the
ability of the low pressure turbine (LPT) to increase power so as to minimize the costs incurred by
the company. The following is the total energy consumption used by PT PJB UP Muara Karang.
In addition to PEMA-related inputs, there are also non-product outputs produced by the
company as a result of the production process activities during the period 2014 to 2017. The non-
product output produced by the company is the result of the program implemented by the
company in environmental management. The following is the non-product output of PT PJB UP
Muara Karang.
2. Monetary Environmental Management Accounting
MEMA is monetary information obtained from environmental management accounting
shown in the profit and loss balance sheet of PT PJB UP Muara Karang for the period 2014 to
2017. After analyzing PEMA and MEMA, the eco-efficiency value can be calculated. The value of
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eco-efficiency is obtained by comparing environmental performance obtained from the company's
environmental costs with financial performance obtained from the value of the company's
environmental costs added the results of the reduction between sales and purchased goods and
services contained in the company's income statement in the period 2014 to 2017, so that the eco-
efficiency value of PT PJB UP Muara Karang will be obtained as follows.
Table 8 shows that the value of eco-efficiency at PT PJB UP Muara Karang has increased
from 2015 to 2017, and decreased in 2015 over 2016 by 1.04%. Based on the processed data, it
can be concluded that the application of environmental management accounting as an eco-
efficiency effort and/or environmental improvement at PT PJB UP Muara Karang is still relatively
low with an average of 2.67% from the comparison of all environmental performance to the
company's financial performance. This proves that the increase in the efficiency of environmental
improvements that the company has made reaches 2.67% per year 2014 to 2017 and is still
relatively low. In improving it, companies are required to continue to create programs and
innovations related to environmental improvement, and continue to evaluate continuous
improvement of programs and innovations that lead to environmental management accounting
such as WWTP, composting, 3R innovation of B3 and non-B3 waste, Waste Bank program,
reforestation and biodiversity preservation that have been implemented by PT PJB UP Muara
Karang. In addition, companies need to pay attention to and improve environmental management
accounting reporting by making special environmental financial reporting, because environmental
management accounting reporting is one of the great opportunities to attract investors in assessing
the company's sustainable development, as well as an effort to implement environmental
management accounting better.
Environmental Management Accounting in Improving Competitiveness:
Every company always has unique strategies, programs, and innovations in improving the
performance of its company. The increase in the level of eco-efficiency or environmental
improvement at PT PJB UP Muara Karang along with the implementation of programs and
innovations that lead to environmental management accounting such as WWTP, composting, B3
and non-B3 waste innovation, Waste Bank program, reforestation and biodiversity proves that the
company views environmental improvement as something that needs to be considered. PT PJB UP
Muara Karang tries to reduce the environmental burden on every product life in accordance with
one of the company's missions, namely running a quality, competitive and environmentally
friendly generation business. The mission explains that the company not only focuses on quality
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and competitiveness but also on the quality of the surrounding environment by focusing on
reducing resources in an effort to prevent waste and treat waste as the best way to improve
environmental performance on financial performance. Here are some of the company's awards
related to the environment.
Based on research in the field, the results of qualitative analysis of environmental
management accounting at PT PJB UP Muara Karang are included in the eco-efficiency effort.
Efforts made in improving the company's environmental performance have a fairly good impact
on the company's profitability where in 2015 and 2016 it increased by an average of 12.4%,
although in 2017 it decreased by 7.5%. However, efforts to improve environmental performance
have no impact on increasing productivity. This can be seen from the continuous decline in
electricity productivity from 2016 to 2017. PT PJB still has not conducted financial reporting
related to environmental management accounting specifically. In fact, the company's
environmental performance efforts are quite good, it can be seen from the results of the eco-
efficiency calculation. In each year The percentage value of eco-efficiency continues to increase,
although with a low average value of 2.67%. Environmental management accounting reporting
can be used as a huge opportunity to attract investors, facilitate internal management in making
decisions, and be used as a tool in increasing the competitiveness of companies both nationally
and internationally.
Managerial Implications:
Based on research on the application of environmental management accounting as a form of
eco-efficiency, it is revealed that the efforts made by UP Muara Karang are included in the eco-
efficiency effort with a positive value and an average of 2.67%. This can be taken into
consideration and attention of the company, where the average of 2.67% shows that the company's
commitment to environmental sustainability is still quite low. In fact, the environmental programs
and innovations carried out are quite a lot and are recognized by the acquisition of Green
PROPER from KLHK for the last two years. So that in this case UP Muara Karang needs to carry
out continuous evaluation planning for programs and innovations that are running and will run.
One of them is by providing waste processing education to the Waste Bank so that the type of
waste processed becomes more, increasing composting productivity, building cooperation with
schools and communities around the company to carry out environmental care programs,
providing counseling to all employees on the importance of environmental sustainability so that
awareness arises that the environment is a shared responsibility.
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In addition, in environmental management accounting reporting, the company has not
conducted financial reporting specifically related to environmental performance, even though the
company has an environmental division. The company's environmental financial reporting has not
been made specifically and in detail is still incorporated into maintenance costs. This is evidenced
by the existence of several costs that have not been calculated, such as the cost of depreciation and
maintenance of each waste treatment tool, grouping costs that are still not well organized, and
accounts that disappear and appear. For this reason, companies need to make special financial
reporting regarding environmental management accounting so that its implementation can be
carried out more optimally. Special financial reporting can act as a controller for the
implementation of environmental management accounting in the company, and can assist internal
management in evaluating and making decisions related to environmental cost control and
resource use which aims to improve competitiveness and environmental performance on financial
performance.
Conclusions:
1. The implementation of environmental management accounting at PT PJB UP Muara Karang
can be seen from the implementation of programs and innovations that have been carried out by
companies such as WWTP, composting, efficiency and diversification, Waste Bank programs,
greening and biodiversity preservation, and 3R innovations for B3 and non-B3 waste. Where in
the last three years the company has continued to make improvements to each program and
innovation, so that every year environmental costs continue to increase.
2. The implementation of environmental management accounting at PT PJB UP Muara Karang is
included in the eco-efficiency effort with a positive value and a value that has continued to
increase in the last three years. Based on the processed data, the results of the application of
environmental improvement or eco-efficiency of the company have an average of 2.67% from
the comparison of all environmental performance to financial performance. The low value of
eco-efficiency is due to the company has not recorded financial reporting of all environmental
improvement activities in the company's environmental costs specifically.
3. The application of environmental management accounting is a form of competitive advantage
that contains PEMA and MEMA information that can be used by internal management to
evaluate and make decisions more easily, and help investors assess the level of sustainable
development of the company. The strategy of increasing the competitiveness and profit of the
company with environmentally friendly efforts is no longer included in the strategy that is only
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used to fulfill corporate social responsibility. PT PJB UP Muara Karang in implementing
environmental management accounting as a form of eco-efficiency based on the company's
commitment to environmental sustainability is proven by programs and innovations as well as
several awards that have been successfully achieved by the company. It is certain that every
company that implements environmental management accounting in the form of any program
will have advantages compared to companies that do not implement environmental
management accounting.
