Readiness in implementing green industry standard for SMEs: Case of Indonesia's batik industry

Abstract

Green Industry Standard (GIS) acts as a guideline for industries, including the Small and Medium Enterprises (SMEs) to preserve the environment and economy in their production process. This study aims to assess the industry's readiness in the case of Indonesia's batik industry, to adopt the GIS and optimize its implementation. The method used in this study is survey and interviews. The survey and interviews involved 25 respondents, comprising owners or managers of the batik industry engaged in handcrafted, stamped, or combined batik production, from pattern-making to finishing stages. The analysis has been done using the Stages of Change Readiness and Treatment Eagerness Scale (SOCRATES) instrument to evaluate the industry's readiness and employing TOWS (Threats, Opportunities, Weaknesses, Strengths) analytical tool to formulate optimization strategies. The results of this study show that an assessment of the batik industries' compliance with Green Industry Standards revealed that they have not yet adopted sustainable practices in their production processes concerning materials, energy, water, products, and waste. The SOCRATES analysis also indicates that the batik industry's readiness to meet the technical requirements of the GIS is currently low. In conclusion, the primary approach in applying green industry principles should focus on rectifying existing weaknesses concerning craftsmen's awareness and understanding of green industry practices. After the industry's awareness emerges, utilizing GIS can boost production, improve raw material efficiency, and provide customers with greater "green" value.

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