Green industry concept for strengthening SMEs in the borobudur, super priority tourism destination area

Abstract

This study aims to provide an index model to strengthen SMEs based on the draft green industry and factors that influence the application of the green industry. Method study which conducted in the study Index green industry is formulated through several stages: (1) Collecting the definition of green industry in tourism activities from previous research. (2) Identify and analyze each element of the definition that corresponds to a green industry item. (3) Delete some items which similar. (4) Arrange index modification with add indicator ideal. (5) Testing the validity of indicators through Focus Group Discussion (FGD) with experienced academics and industry practitioners, especially related to activities SMEs. The results of the hypothesis test show that the variables of Size and Profitability of SMEs have a positive effect on the implementation of Green Industry in SMEs, while the variables of Management Ownership and Leverage do not affect the application of Green Industry in SMEs. The results of this study are expected to be a model for policies that are carried out to support the SDGs, especially SDG 12, namely ensuring that sustainable consumption and production that leads to the use of resources more efficiently and in better ways. This research is expected to support the G20 Presidency program held by Indonesia in 2022 with the theme "Recover Together, Recover "Stronger"and pillars consisting of: strengthening the partnership environment, encouraging productivity, increasing endurance and stability, ensuring sustainable growth and inclusive, and stronger global collective leadership.