THE IMPLEMENTATION OF ENVIRONMENTAL GOVERNANCE TOWARD SUSTAINABLE INDUSTRIAL DEVELOPMENT; A CASE STUDY OF INDONESIAN BOTTLED WATER INDUSTRY

• Main Author: Krisna Rachman, Okky
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42223
• Institution: Institut Teknologi Bandung

Industrial sector has given a significant contribution for Indonesia national income; moreover, it also has provided basic needs as well as jobs for the society. However, along with the growth of industrial development, there is always issue regarding the sustainability of this process. In this case study, bottled water industry has become one of the most vital industry in Indonesia since it provides drinking water needs for society and also contribute significantly for national GDP; yet, there are some environmental drawbacks of this industry such as the exploitation of natural water resource and plastic waste of the product. Environmental governance has been used as theoretical approach of the research and then Sustainable Development Goals as the contextual approach. Those two approaches being used in order to give a comprehensive elaboration of industrial and governance practices to increase the sustainability of this commodity. This research identifies related stakeholders of the industry, their role, regulation and inter-relation among them that could affect the production practices of bottled water industry. Methods use are stakeholder analysis, need-gap analysis and system thinking approach. The data used is based on field observation and semi-structured interview to 9 different stakeholders as well as secondary data of their regulation and standard related to the observed industry. Based on the analysis, there are some standard gaps in water resource exploitation procedure, unavailability of coordination mechanism, inefficiency in surveillance system and lack integration in rewarding system of the industry. The analysis then continued with the confabulation of system thinking approach that resulting a governance model based on 5 sub-systems, namely surveillance system, regulation and procedure, coordination mechanism, economic incentive and research development. From these findings some recommendations are proposed that consist of strengthening surveillance system, establishing a clear regulation of natural water resource exploitation procedure, promoting an intensive coordination among stakeholders and stimulating companies by giving economic incentives. Furthermore, those findings and recommendations could also be applied to other industrial sector with similar characteristics like provide basic needs for the society, related to natural resource exploitation and produce plastic waste from the production process.