Articles

Proposed Business Strategy for Implementation of Green Port at Merak Ferry Port to Achieve Sustainability

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Climate change is a challenge for the global world, requiring immediate action to reduce its impact on the environment. Indonesia is a party to the Paris Agreement, where Indonesia is committed to reducing reduce greenhouse gas emissions by 31.89% by 2030. As a state-owned company, PT. ASDP Indonesia Ferry (Persero), which operates in the port and ferry sector, is one of the transportation industry entities in Indonesia that plays a role in supporting this commitment. Merak Ferry Port, the largest port managed by PT. ASDP Indonesia Ferry (Persero) requires the implementation of environmentally friendly port practices to be in line with sustainability goals. This research aims to develop a business strategy for implementing a green port at the Merak Ferry Port to achieve sustainability.  Identify best practices from globally successful green port initiatives, evaluate the status of Merak Ferry Port in terms of sustainability initiatives, and propose actionable strategies to transition towards sustainable port operations. The research methodology includes qualitative analysis by collecting primary data through stakeholder interviews and collecting secondary data from case studies and related documents. Analytical tools such as Benchmarking, PESTEL, VRIO, and Value Chain analysis are used to assess internal and external factors influencing port sustainability. These findings indicate that there is a great opportunity for the Merak Ferry Port to improve environmental performance through the application of renewable energy, energy-saving technology and a comprehensive waste management system. The proposed strategy emphasizes the integration of environmental, economic and social dimensions of sustainability by utilizing the Triple Bottom Line approach. The green port implementation strategy implementation plan outlines specific actions, timelines, and resource allocation to ensure successful implementation of environmentally friendly port practices. This study contributes to knowledge about sustainable port management and provides business solutions for PT. ASDP Indonesia Ferry (Persero) to increase operational efficiency and concern for the environment. The results of this research underscore the importance of aligning business strategy with a commitment to national and international sustainability to achieve long-term viability and competitiveness in the port and ferry industry.

Implementation of ESG as a Strategy for Business Sustainability in a Public-Listed Tobacco Company in Indonesia

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Environmental, Social, and Governance (ESG) has been introduced to the business communities for the past two decades. It has grown in importance as a framework for measuring a company’s sustainability and as a guide for investment decision-making. In Indonesia, the publicly listed companies at the Indonesia Stock Exchange (IDX) have been required to implement and report ESG practices since 2021 through a regulation issued by the Financial Services Authority (OJK) in 2017. Among those is a tobacco company operating in Indonesia, PT HM Sampoerna Tbk. (Sampoerna/The Company/IDX: HMSP) that has been an affiliate of an international tobacco company, Philip Morris International (PMI), since 2005. The tobacco industry’s ESG implementation is particularly interesting due to the adverse externalities generated by its products, which is stated by WHO as one of the biggest issues for public health. This research focuses on analyzing the company’s ESG initiatives and creating improvement strategies in the context of a company operating in the tobacco industry with the objective of maximizing the role of ESG implementation to ensure business sustainability.

Advanced TRST01 ESG Scoring Model with Beta Based Financial Metrics and Machine Learning Techniques

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In the current corporate world, assessing a company’s sustainability performance is very important for investors, stakeholders, and policymakers. The TRST01’s ESG (Environmental. Social and Governance) Scoring Model introduces an innovative approach integrating beta-based financial metrics with advanced machine learning techniques to comprehensively evaluate ESG credentials. This study demonstrates the development and application of the TRST01’s ESG scoring model, which leverages data from the most reputable sources such as MSCI and S&P Global to ensure its reliability and accuracy. The model’s unique methodology involves calculating country-specific beta values to normalize carbon emission data, thereby providing a standardized metric for meaningful comparisons across countries. Further, ESG scores are adjusted using both country and company beta values to reflect specific risk exposures, enhancing the precision and relevance of the assessments. The model ensures robust input data quality, by taking Market capital, Scope 1, Scope 2, industry wise data and beta values as predictors through extensive data preprocessing and encoding categorical variables for top 1000 listed companies. A comparative analysis of Traditional model such as Simple Linear Regression (SLR) and multiple Machine Learning (ML) models, including Gradient Boosting (GB), Support Vector Regression (SVR), and Random Forest (RF), demonstrates that the Gradient Boosting model achieves superior performance with minimal overfitting and consistent prediction accuracy. The study employs a comprehensive evaluation framework using various metrics such as Mean Absolute Error (MAE), Mean Squared Error (MSE), and R-squared, supplemented by detailed visualizations of actual vs. predicted values, residuals, and error distributions. This research underscores the significance of incorporating advanced financial metrics and machine learning techniques in ESG assessments, providing a reliable, accurate, and holistic framework for understanding corporate sustainability. The TRST01 ESG Scoring Model sets a new standard in sustainability evaluation, offering valuable insights for stakeholders committed to integrating sustainability into core business strategies.

Predicting a Higher Heating Value for Torrefied Kesambi Leaf Biobriquettes through Ultimate Analysis

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The escalating global pursuit of sustainable energy solutions has led to the emergence of biomass-derived fuels, such as biobriquettes, as feasible substitutes for traditional fossil fuels. Kesambi leaves, which are abundant in Southeast Asia and boast a high calorific value, represent a promising prospect for the production of biobriquettes. In this investigation, a conclusive analytical method is employed to construct a predictive framework for estimating the Higher Heating Value (HHV) of torrefied kesambi leaf biobriquettes. By incorporating ash content (PS), volatile matter (BR), carbon (C), hydrogen (H), and oxygen (O) percentages, alongside experimental HHV data, through multiple linear regression and elemental composition data acquired from proximal analysis, the model aims to forecast HHV. The model’s modest positive Mean Bias Error (MBE) and satisfactory Root Mean Square Error (RMSE) suggest a good fit. The substantial R-squared value indicates the model’s capability to adeptly capture HHV variability. Ultimately, this approach grounded in fundamental principles contributes significantly to the sustainable exploitation of biomass resources by providing a pragmatic and effective technique for predicting HHV for kesambi leaf biobriquettes.

Identifying Environmental, Social, and Governance (ESG) Implementation towards Growth and Sustainability: A Case Study at Assisted Micro, Small, and Medium Enterprise (MSME) by Bank Indonesia

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As one of the financial institutions in Indonesia which also has important role in determining the direction of Indonesia Economy, Bank Indonesia currently already assist 1.143 MSMEs within several sectors. Previously known that approximately 59,1% of total assisted MSMEs are dominantly still not adapting the environmentally friendly practice into their business. With the requirement of Environmental, Social, Governance (ESG) implementation within every organization as well as enterprises become necessary since already stated in the provision POJK No. 51/POJK.03/2017. Whereas Environmental is one of the elements on ESG itself. Through the ESG implementation particularly for enterprises, it offers added-value for the business itself. Not only added-value, ESG implementation could also lead to the growth and sustainability which also become important for the enterprises. The research aims to provide portrait/mapping the condition of assisted MSMEs based on ESG elements. Through the literature review, author enrich the rubrication measurement tool of assisted MSMEs with the ESG standard that already used internationally i.e. Sustainable Accounting Standards Board (SASB) and Climate Disclosure Standards Board (CDSB). all of the ESG elements have significant impact on Growth and Sustainability. The result also shown that there is one sub-indicator which comes from Social element regarding pension insurance which has high influence to the assisted MSMEs business but most of the respondent haven’t concerned about it yet. There are other items with high influence to the business but still need to be improved which are leave for employee, health facilities guarantees, diversity and stakeholder support. Other than that, since the dominant of respondent are coming from Processing Industry, the subindicator regarding guarantee for consumer health and safety need to be considered. The result of this research could be the recommendations both for Bank Indonesia and assisted MSMEs which requires special concern for ESG elements if the enterprises want to achieve growing and sustainable business ahead.

Transforming NGO Projects into Social Enterprise

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Introduction: Non-Government Organization (NGO) is Non-Profit Organization founded to create social impact without looking for profit. NGOs are generally funded through charitable donations, however, many of those sources of funds have dried up. For sustainability, NGOs need to find ways to enhance their sustainability, diversify their income source and become less dependent on donors. This research will study Global Peace Foundation Indonesia using Gap Analysis to find how to transform an NGO into a Social Enterprise and the innovation of the business model needed.

Literature Review: This research benchmarks Fowler’s steps of social enterprise, Ann Mei Chang’s hybrid organization, and Burkett’s social business model.

Research Methodology: This research collects primary and secondary data through interviews, FGD, and desk research. The data obtained data from the collection methods will be processed and analyzed with a qualitative approach: logic model, PESTEL Analysis, and SWOT Analysis.

Result and Discussion: From the logic model of Global Peace Foundation Indonesia, can be seen that some projects can potentially be transformed into a social enterprise, and the nearest industry to those projects are Tourism Industry. Continuing the logic model analysis, PESTEL Analysis was done, and the result showed some positive opportunity in the tourism industry that relate to what Global Peace Foundation Indonesia value. As there’s a positive opportunity, SWOT Analysis was used to find the strategies to implement. Those Analyses were used to produce the Value Proposition Canvas and Social Business Model of Global Peace Foundation Indonesia.

Conclusion and Recommendation: Fowler’s steps of Social Enterprise are slightly different from the transforming steps of Global Peace Foundation Indonesia. This research can be used by other field affiliates of the Global Peace Foundation and other NGOs who want to transform into social enterprises too. Future research can focus on the assigning human resource and leadership to the transformation process.

Repair, Reused and Recycle as a New Business Model for Furniture Enterprise in Indonesia to Support Sustainability Program: Case of Oo-Furni Furniture Enterprise.

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This research aims to study about the condition of furniture business on MSME (Micro Small Medium Enterprise) in Indonesia by case study is Oo-Furni as knowledge to build the correct strategy for new business which has decreased the sales trend due to tough competition. Furthermore, the furniture industry in Indonesia has problem with sustainability which is related to environmental. The two problem issues are decrement the availability of raw material and waste from furniture used. The analysis has conducted in this research with internal analysis and external analysis. The internal analysis was consisting of the sales trend, general capital & profit data and SWOT. The external analysis was consisting of customer perceptions, porter five forces, PESTEL. The data has been retrieved from primary data and secondary data. The analysis results   have been followed up by Business Model Canvas to build new business model and the marketing mix strategy. The recommendation for new business model to growth and survive over long time was repair, reused and recycle.  The new marketing strategy for new business model was developed to increase the sales of Oo-Furni.

Influence of Management Commitment in the Implementation of Hotel Environmental Management Practices and its Effect on Business Sustainability among Hotels in Tanzania

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This study aimed to assess the influence of management commitment in the implementation of hotel environmental management practices and its effect on business sustainability among hotels in Tanzania. Studies have shown that management commitment plays a significant role in the implementation of hotel Environmental Management Practices (EMPs). Based on that argument, two hypotheses were formulated as follows; Firstly, Management commitment influences the implementation of environmental management practices. Secondly, Implementation of environment practices have effects on hotel business sustainability. The study was conducted in two cities namely: Arusha and Dar es Salaam whereby a structured questionnaire with Likert scale range from 1 to 5 was used to collect information from the sample of 400 managers and supervisors of hotels.   SPSS software was used for data entry and AMOS software version 23 was used to analyze multivariate analysis and Structural Equation Modeling (SEM) was used to test the hypotheses. The findings indicated that both hypotheses were accepted that is, Management commitment has a positive influence on the implementation of the EMPs with highly significant at p<0.000. Also, the implementation of EMPs has a positive effect on hotel business sustainability strongly significant p<0.000. Therefore, the implications to industry managers and expertise are: first, hotel managers’ commitment plays a pivotal role in the EMPs implementation. Second, the implementation of EMPs in hotels serves as a vehicle in achieving hotel business sustainability. This contributes to a body of knowledge by showing that an environmental factor is a major external component that affects business sustainability in organizations like hotels. Moreover, the study has enlightened that, a hotel manager stands a strategic role in managing the organization based morals and values that address the interest of a bigger segment of its stakeholders. The study recommends future research on further study of water conservation especially on reducing water for showering and bathtubs. It was concluded that commitment of hotel managers in the implementation of EMP plays a pivot role in the sustainability of hotel business in Tanzania.

Vermicomposting in Silver Oak Plantation Areas for Sustainable Waste Management and Enhanced Livelihood: A Case Study of Kolli Hills, Tamil Nadu, India

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Silver Oak plantation on farmlands growing coffee and black pepper has gained importance in recent times in the areas surrounding the Kolli hills in the Namakkal district of Tamil Nadu, India. The Silver Oak trees shed significant quantities of dry leaves during the summer season which the local Malayali tribal community burns and/or leaves on ground. The current case study is based on an experiment of vermicomposting using local Silver Oak leaf litter, cow dung and earthworms. The results show that joint production of manure from agroforestry practices is an option in self-sufficiency for the rural communities and has the potential for a business model. Moreover, this ensures environmental sustainability by avoiding green-house gas emissions that are caused by the practice of burning leaves and/or leaving the mulch to rot. The present paper attempts to develop a sustainable model of vermicomposting in the Kolli hills region that can offer triple solutions encompassing organic manure production, environmental quality improvement and livelihood opportunity enhancement. Based on field surveys and physiochemical experiments in the Perungiraipatti village of the Kolli hills, the study presents a sustainable model of vermicomposting with specifications on nutritional quality, environmental sustainability and economic development.