Environmental Management Accounting in Product Management

Responsible Product Management: Implementation of Environmental Management Accounting The products produced come from the management of environmentally friendly production processes that can be seen at PT Aneka Tambang Tbk. UBPE Pongkor. Likewise, after post-production, the waste produced is managed and also processed properly. The following are the company's main products. Table 1 Products of PT Aneka Tambang Tbk. UBPE Pongkor No. 1 2 Description Gold Silver Source Unit Kg Kg 2012 1.700 14.995 2013 1.722 14.972 Year of Production 2014 2015 1.607 1.498 13.352 12.735 2016 1.463 11.242 : Data processed (2017) Not only the main products that can be traded, the company also innovates in the utilization of company waste, including: a. Utilization of tailings as a basic material for construction material production. UBPE pongkor is a company that has the first tailings utilization plant in Indonesia which was inaugurated directly by the Minister of LH. b. Utilization of B3 packaging into furniture. ANTAM UBPE Pongkor is one of the companies that utilizes B3 packaging into high economic goods as furniture in Indonesia. c. Recycle activities produce composting products. It is divided into two types, liquid and solid compost, which are used in reclamation activities. Full Costing Accounting Table 2 Full costing accounting Description Mining Processing Variable cost Royalties Tax Depreciation Fixed cost Total Source UOM USD/ToZ USD/ToZ USD/ToZ USD/ToZ USD/ToZ USD/ToZ USD/ToZ USD/ToZ 2012 381.04 271.11 652.15 61.93 2.29 328.78 393 1045.15 2013 347,85 215,99 563,84 51,49 8,19 407,62 467,3 1031,14 Year 2014 350,25 216,46 566,71 48,22 8,48 283,76 340,46 907,17 2015 300,12 224,21 524,33 41,15 9,80 310,68 361,63 885,96 2016 334,80 245,78 580,58 45,58 10,21 323,17 378,96 959,54 : Data processed (2017) Full costing accounting of PT Aneka Tambang Tbk. UBPE Pongkor consists of variable costs, namely the cost of mining which is mining and processing activities, while fixed costs consist of royalties, taxes and depreciation. 23 Amortization. The unit of a product used in table 2 is USD/Toz meaning live gold price in USD per Troy Ounce, where 1 troy ounce = 31.1034768 grams of gold. When compared to data per year this can be used as a cost control benchmark because it gives all fixed costs in one group. So that management can focus on the behavior of these fixed costs. In addition, variable costing can also be used to determine short-term selling prices. In the table it can be concluded that the company has reduced the cost of full costing accounting from 2012 to 2015, this can be interpreted that the company's environmental performance has been running well, but the cost increased by 8.30% in 2016 to 959.54 USD/Toz this is due to long-term investments made by the company in 2016 in the form of buildings in the form of environmental monitoring laboratories and technology used as supporting infrastructure in the company's environmental management. Application of Environmental Cost Accounting Environmental costs according to the company are costs that have an impact on the environment that can affect environmental activities. At PT Aneka Tambang Tbk. UBPE Pongkor has issued costs related to its environmental activities, this is in accordance with the theory of Hansen and Mowen (2007). In presenting environmental costs, the company follows the normative model. This model recognizes and records environmental costs as a whole, namely within the scope of one general account space along with other allied accounts. These allied costs are inserted in certain cost account sub-units in the financial statements. PT Aneka Tambang (Persero) Tbk. Pongkor Gold Mining Business Unit is one of the largest companies in Indonesia engaged in mining has made great efforts to reduce waste costs and environmental maintenance. The mining production process that is carried out if it cannot be managed properly can cause additional problems because of its impact on the environment. Domestic and international environmental laws require that the remaining material b e disposed of in an environmentally friendly manner. So leftover materials can add to the cost of generating waste. Environmental costs are costs incurred by the company due to low environmental quality, as a result of the production process. Environmental costs consist of the costs of environmental prevention, environmental detection, internal environmental failure and external environmental failure of PT Aneka Tambang (Persero) Tbk. UBPE Pongkor. In the period 2012 to 2016, PT Aneka Tambang (Persero) Tbk. UBPE Pongkor incurred environmental costs as follows. 24 Table 3 Environmental costs (in rupiah) Year Environ mental costs 2012 2013 2014 2015 2016 Environmental Prevention Cost Research 146.000.000 150.666.965 36.596.868 0 0 Maintenance 539.824.934 546.890.005 647.353.453 719.690.315 795.756.134 Erosion control 7.006.606.877 3.457.570.473 1.367.126.199 1.098.088.468 1.308.120.130 21.405.246.830 14.806.219.980 9.550.785.098 4.716.593.681 322.822.160 373.592.725 223.071.508 277.250.020 Manage tailling 20.300.428.400 Environmental Detection Cost Monitoring 291.947.550 Internal Cost of Failure Manage waste Waste shipment Domestic waste transportation 6.617.641.266 7.685.485.402 6.027.247.322 5.503.590.158 5.626.234.042 72.138.500 120.679.469 145.907.737 235.903.726 245.060.435 164.250.000 162.300.000 131.000.000 113.850.000 105.500.000 Incenerator 62.925.523 96.164.916 80.378.489 9.640.416 0 External Cost of Failure Reclamation Total 1.183.059.026 1.422.673.344 1.113.961.350 805.699.327 4.132.946.062 36.384.822.076 35.370.498.564 24.729.384.123 18.260.319.016 17.207.460.504 Source : Data processed (2017) PT Aneka Tambang (Persero) Tbk. Pongkor Gold Mining Business Unit considers preservation and improvement of the environment to be something that needs attention. The company tries to reduce the environmental burden on every product life. From production, distribution, disposal and recycling. In accordance with one of the company's missions, namely optimizing resources by prioritizing sustainability, work safety and environmental sustainability which focuses on source reduction (preventing waste, and treating waste) as the best way to achieve low environmental costs. The results of field analysis show that the company suppresses environmental costs on environmental prevention and detection costs which are decreasing every year as seen in 2013 over 2012 decreased by 8.69%, changes in 2014 over 2013 decreased by 34.05%, changes in 2015 over 2014 decreased by 32.56% and changes in 2016 over 2015 decreased again by 40.01%. Meanwhile, the cost of environmental detection is fluctuating. It can be seen that the change in 2013 over 2012 has increased by 10.58%, in 2014 over 2013 has increased by 15.73%. in 2015 over 2014 has decreased again to 40.29% and in 2016 over 2015 has decreased by 24.29%. And the cost of internal failure in 2013 over 2012 increased by 16.59%, this is due to adjustments to the implementation of the waste management program so that evaluations of the program are still being carried out which require greater costs, but in 2014 over 2013 the costs i n c u r r e d b y t h e c o m p a n y were higher. 25 in 2015 over 2014 also decreased by 8.17%, but in 2016 over 2015 experienced an insignificant increase of 1.94% due to cost overruns in the waste management program and the delivery of waste to third parties due to increased waste generation causing an increase in environmental costs.