GREEN ECONOMY PRACTICES PADA UMKM BAKERY : EKSPLORASI STRATEGI, TANTANGAN DAN KINERJA USAHA DI JAWA TIMUR

This study explores green economy practices among bakery micro, small, and medium-sized enterprises (MSMEs) in East Java, focusing on implementation strategies, adoption challenges, and implications for business performance. A qualitative case study design was employed. Data were gathered through semi-structured interviews, non-participant observation, and business documentation involving bakery MSME owners or managers and relevant supporting informants. The results indicate that green economy practices in these bakery MSMEs are manifested through energy efficiency, food waste reduction, conservation of raw materials and water, container reuse, waste sorting, and the use of eco-friendly packaging. Implementation strategies primarily involve aligning production volume with demand, optimizing the use of equipment and raw materials, and responding to customer preferences for environmentally friendly practices. Key obstacles identified include limited capital, the relatively high cost of technology and eco-friendly packaging, material availability, employee habits, and limited knowledge. The findings also show that the most consistently realized benefits are cost efficiency, waste reduction, and increased productivity, whereas the impact on revenue growth cannot yet be directly attributed to these practices. In some instances, green economy practices also contribute to business image, customer loyalty, and repeat orders. Conceptually, the adoption of green economy practices among bakery MSMEs tends to evolve from efficiency-focused measures toward differentiation strategies driven by customer response.