Competitiveness and SMEs production sustainability through the cleaner production (case study: SMEs of fish processing unit in Pinrang Regency, Indonesia)

Abstract

The challenge for the success of SMEs in Indonesia is increasing competition that demands adaptation to environmental changes. In 2018 SMEs fish processing for boneless frozen milkfish in Pinrang Regency has a production capacity of 150 tons, potentially producing solid, liquid or gas waste. The purpose of this research is to analyze the potential of SME's fish processing waste and its utilization in supporting the sustainability of production. The study was conducted in Pinrang Regency from December 2018 to April 2019 with a qualitative descriptive approach. Data collection through field observation, interviews, and documentation. The results showed that the potential of waste produced by 20-30 percent was used as food, feed and fertilizer products. The diversification of the main products into "fish meatballs" and "fish crackers" increases competitiveness and reduction of solid waste. Solid waste is also used to produce by-products in the form of "shredded milkfish" and "fishbone sticks". SMEs fish processing has dynamically applied the concept of clean production in handling and utilizing waste. Waste management has reduced the impact on the SME's fish processing environment. The implementation of clean production has increased production capacity, product diversification, guaranteed product quality, and the welfare of owners and workers. The strategy for handling and managing waste has optimized added value and supports the improvement of competitiveness and sustainability of production.