From Traditional to Low-Carbon: Examining the Green Transition of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia

Authors

  • Elimawaty Rombe Department of Management, Tadulako University, Palu, Indonesia
  • Suryadi Hadi Department of Management, Tadulako University, Palu, Indonesia
  • Muhammad Gunawan Department of Management, Tadulako University, Palu, Indonesia
  • Mukhlas Mansyur Department of Management, Tadulako University, Palu, Indonesia
  • Roy Irawan Mendi Department of Management, Tadulako University, Palu, Indonesia

Abstract

Abstract - This study examines green practices in micro, small, and medium enterprises (MSMEs) across the food processing, handicrafts, food and beverage, and fruit retail sectors. The results of the qualitative data analysis obtained from the ten informants produced five main themes, namely the adoption of green practices, market and consumer demand, financial and resource constraints, environmental regulations and policies, and knowledge and skills. This study identifies that MSMEs have a high awareness of waste reduction, energy efficiency, and environmentally friendly marketing. The main obstacles they face are that the cost of environmentally friendly materials is quite high, financing sources are still limited, and there are no standard regulations. Another obstacle is the wide knowledge gap, which limits the achievement of implementation. This study shows that policy support is vital, followed by simpler financing mechanisms, and there is a need for capacity building for MSMEs that provide opportunities for the integration of sustainability in their business practices.

Keywords - low-carbon transition, MSMEs, Indonesia, green practices, thematic analysis

Downloads

Submitted

2025-09-10

Published

2025-09-10

Conference Proceedings Volume

Proceedings of The 9th International Conference on Management in Emerging Markets (ICMEM) SBM ITB

Section

Articles