Small and Medium Industries (SMIs) in Indonesia play a crucial role in the manufacturing sector but face significant barriers in adopting sustainable manufacturing (SM) practices, including financial, technological and regulatory challenges. This barrier hinders the contribution of SMIs to sustainable development goals. This research investigates these barriers and proposes strategic approaches to implementing SM within Indonesian SMIs, focusing on enterprises in Java. Utilizing Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS), this study aims to prioritize the barriers impeding SM adoption and identify the most effective strategies for overcoming the barriers. By analyzing survey data, the research uncovers key barriers such as lack of consumer awareness, limited manufacturing technology, financial constraints, knowledge gaps, and insufficient commitment from top management. To address these challenges, a multi-faceted approach is proposed, encompassing various strategic include enhancing financial policies and incentives to encourage SM investments, fostering collaborative research and development initiatives to drive technological innovation, advocating for supportive regulatory frameworks that streamline SM adoption, and institutionalizing capacity-building programs to empower SMIs with the necessary knowledge and skills. This research emphasizes the need for a comprehensive strategy combining financial support, technological advancement, and robust policies to enable Indonesian SMIs to adopt SM. By implementing these strategic approaches, SMIs can overcome existing barriers, capitalize on potential avenues for growth, and contribute to a more sustainable and resilient industrial landscape. This study provides valuable insights for policymakers, industry stakeholders, and researchers seeking to promote SM and foster economic, environmental, and social well-being in Indonesia.

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Overcoming Barriers to Sustainable Manufacturing in Indonesian Small and Medium Industries: A Fuzzy AHP and Fuzzy TOPSIS Approach

  • Dudi Sentana Iskandar,
  • Shih-Che Lo,
  • Rachmawati Wangsaputra,
  • Nur Faizatus Sa’idah

摘要

Small and Medium Industries (SMIs) in Indonesia play a crucial role in the manufacturing sector but face significant barriers in adopting sustainable manufacturing (SM) practices, including financial, technological and regulatory challenges. This barrier hinders the contribution of SMIs to sustainable development goals. This research investigates these barriers and proposes strategic approaches to implementing SM within Indonesian SMIs, focusing on enterprises in Java. Utilizing Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS), this study aims to prioritize the barriers impeding SM adoption and identify the most effective strategies for overcoming the barriers. By analyzing survey data, the research uncovers key barriers such as lack of consumer awareness, limited manufacturing technology, financial constraints, knowledge gaps, and insufficient commitment from top management. To address these challenges, a multi-faceted approach is proposed, encompassing various strategic include enhancing financial policies and incentives to encourage SM investments, fostering collaborative research and development initiatives to drive technological innovation, advocating for supportive regulatory frameworks that streamline SM adoption, and institutionalizing capacity-building programs to empower SMIs with the necessary knowledge and skills. This research emphasizes the need for a comprehensive strategy combining financial support, technological advancement, and robust policies to enable Indonesian SMIs to adopt SM. By implementing these strategic approaches, SMIs can overcome existing barriers, capitalize on potential avenues for growth, and contribute to a more sustainable and resilient industrial landscape. This study provides valuable insights for policymakers, industry stakeholders, and researchers seeking to promote SM and foster economic, environmental, and social well-being in Indonesia.