Challenges and strategies for enhancing environmental performance in Indonesia’s batik industry

Sustainability is now accepted by all stakeholders as a guiding principle for public policy making and corporate strategy. However, the biggest challenge still lies in the implementation of achieving environmental performance in an industry. The current concept of environmental waste focuses on the total waste production from the remaining production results. Therefore, there is an emphasis on limiting waste within the boundaries of the industry and implementing post-production processes to clean it up. The batik industry as a livelihood for some Indonesian people still produces waste from production (solid and liquid waste) which disrupts environmental sustainability. This study aims to determine the effect of eco-efficiency, non-product output, and waste reduction on environmental performance. The associative method was used in this study. The types of data used are primary and secondary data, with data collection methods through questionnaires. Quantitative methods with Smart PLS analysis tools were used in collecting research data and analyzing the answers collected to questions from available respondents. The results showed that the relationship between eco-efficiency and environmental performance had a significant effect, as well as the relationship between non-product output and environmental performance, the results were significant. However, the relationship between waste reduction and environmental performance was not significant. Efforts to achieve better environmental performance must be carried out by reducing sources such as low-waste technology and on-site management performance. Meanwhile, encouraging sorting behavior such as increasing stakeholder awareness of waste, improving regulations, strengthening government supervision and controlling illegal dumping should be emphasized.