Driving factors for the success of the green industrial estate: A case study of Pasuruan Industrial Estate Rembang

Abstract

The concept of green industry became a hot issue all over the world as a result of scarcity of resources and environmental quality degradation. Several developed and developing countries have obligated the implementation of the green industry. Indonesian government through the Ministry of Industry also strives to implement green industry principles by adding green industrial standards through law number 3/2014. Pasuruan Industrial Estate Rembang (PIER) is one of the developing industrial estates in East Java, Indonesia. This paper aims to map out the key factors of environment management that make up a green industrial estate (GIE) in PIER. Data was collected by questionnaire, interview, observation, and documentation. The interview was done with experts from PIER management and several industries in the region and also the local government in Pasuruan Regency who understand and are related to this research. The methods used are the Delphi technique survey, the average descriptive statistical and the Analytical Hierarchy Process (AHP) to determine the priority factors for the success of the GIE perspective. As a result, success factors in developing green industrial areas must be supported by several factors, including: clean technological innovation; waste management, operational standard systems; sustainability of Corporate Social Responsibility (CSR); availability of energy, raw materials, water, infrastructure and technology; and the existence of legal certainty and security are the main important factors in driving the success of industrial estates into green industrial estates.