In-Person Panel PS5.7

Sustainable Innovations: Navigating Economic and Environmental Challenges in Contemporary Indonesian Practices

Implementation of Circular Economy on Business in Indonesia  

Ignatia Martha Hendrati, Wirya Wardaya, Putra Perdana

The circular economy, an innovative model aimed at waste reduction and resource efficiency, is integral to sustainability. This paper examines strategies for implementing circular economy principles in the Indonesian business landscape. Functioning as a regenerative system, this model extends resource life through recycling, reusing, and waste reduction, fostering a closed-loop system. In Indonesia, grappling with environmental challenges and being a significant food waste contributor globally, circular economy adoption is crucial. However, challenges include infrastructure deficiencies, demanding urgent attention, and the need to raise awareness and education. A comprehensive policy framework is essential for fostering circular practices. Despite these challenges, Indonesia has a pivotal opportunity to curb waste, enhance resource efficiency, stimulate new business prospects, and contribute significantly to sustainable development. This presentation aims to underscore the transformative impact of circular economy initiatives on business resilience and environmental sustainability, offering insights into practical approaches for grassroots-level sustainable development. 

Financial Performance Impact on ESG Disclosure of Listed Agro-Industrial Company in Indonesia: Do Environmental Sensitivity and Customer Proximity Matter? 

Regina Niken Wilantari, Bayu Aprillianto, Markus Apriono, Isti Fadah

This study explores the complex interrelation among Agro-industrial Firm Financial Performance (FFP), environmental, social, and governance (ESG) practices, and macroeconomic factors. The objective is to reveal how macroeconomics moderates the connection between FFP and ESG. Utilizing a diverse dataset spanning industries and regions, we conduct empirical Moderated Regression Analysis (MRA) to scrutinize the intricate dynamics of this tripartite relationship. Our results unveil a significant link between FFP and ESG, indicating that financially robust firms are more inclined towards sustainable business practices. However, this correlation's intensity depends on various macroeconomic factors such as inflation rates, GDP growth, and interest rates, acting as crucial moderators. Importantly, our study offers empirical evidence supporting the idea that industries sensitive to macroeconomic fluctuations exhibit unique patterns in integrating ESG considerations into strategic decision-making. This highlights the contextual nature of the FFP-ESG relationship, emphasizing the need for tailored sustainability strategies aligned with industry-specific macroeconomic conditions. The findings contribute valuable insights for academics, policymakers, investors, and corporate decision-makers, emphasizing the importance of adaptive, context-specific ESG approaches in the ever-changing economic landscape. 

Cultural Narratives and Sustainable Practices in Disaster Management: Media Insights from Mr. Merapi's Eruption

Elis Zuliati Anis

This research explores the intersection of sustainable environmental practices and local beliefs during the Mt Merapi eruption of Central Java. It analyses how cultural narratives shape disaster response, evaluates how media reflect both local beliefs and scientific discourse, and assesses whether media coverage adequately represents both human and non-human victims in the context of sustainable disaster management practices.  The findings emphasise the importance of cultural beliefs in shaping local communities’ responses to the 2010 Mt Merapi eruption. The late Mbah Maridjan, the spiritual gatekeeper of Mt Merapi, influences the local community's attitude towards disaster planning and resilience. Despite scientific warnings, evacuation decisions were often influenced by charismatic leaders like Mbah Maridjan, showing the complex interplay between scientific and cultural understandings. Integrating traditional beliefs with scientific knowledge is crucial for environmental sustainability and resilience in disaster-prone areas. Fostering scientific literacy and respecting traditional wisdom ensures culturally sensitive and effective disaster preparedness. The study emphasises the importance of including wildlife in comprehensive disaster reporting, which is often overlooked by Indonesian media. A holistic approach to disaster management should value cultural narratives and recognise the interconnectedness of human and non-human victims. This promotes environmental sustainability and strengthens government policy and frameworks.

Nurturing Environmental OCB Through Green HRM Practices and Sustainable Leadership: How Islamic HEIs in Indonesia Manage Their Environmental Performance

Rina Hastuti, Toto Suharto, M. Ramawan Arifin, Muhammad Lutfi Hamid, Sirajul Arifin 

Higher education institutions (HEIs) have a significant role in the environmental awareness movement that follows the hazardous threat of the environmental apocalypse. Human sensitivity to environmental issues is essential for the organisation's environmental performance to be successful. Therefore, investing in human capital is the central point for an organization to boost its performance. In the Indonesian context, with Muslims as the majority, Islamic HEIs have a potential contribution to this issue. This research aims to unpack how the development of environmental awareness in Islamic HEIs can be built through a top-down strategy. This research measures the efficacy of green HRM practices and sustainable leadership style on the employee's environmental organizational citizenship behavior (environmental-OCB) by creating a green psychological climate. In addition, this research highlights the local wisdom variable by proposing religious moderation in the framework to moderate the effect of green psychological climate on environmental-OCB. The findings indicate that a sustainable leadership style is significantly associated with a green psychological climate. The efficacy of green HRM practices in fostering green psychological climate is also statistically significant. In addition, religious moderation is significantly strengthening the effect of green psychological climate on employees' environmental-OCB. This research presents novel contribution to the literature by addressing sustainable HRM practices from the perspective of Islamic organization in global south country. 

Effort in Reducing Flooding Risk in Desa Sekapuk Through Bio-pore and Infiltration Wells: A Participatory Model  

Achmad Room Fitrianto, Abdul Halim 

Environmental degradation poses a grave threat to local ecosystems and community livelihoods, demanding immediate action to identify its causes and implement effective mitigation. This paper portray village innovation of Sekapuk Village in dealing with flooding through bio-pores, and infiltration wells. 

Poverty, arising from limited economic opportunities, begets a slew of associated issues, including poor education, healthcare, and living conditions. Inadequate infrastructure and services have spawned slum areas, amplifying health risks and environmental degradation.  

To address these issues, a participatory model is adopted, engaging the community to devise tailored solutions through interviews, observations, and participation in community events. Proactive measures, including constructing biopore infiltration holes and wells, are taken by the community, enhancing soil water absorption and reducing flood risk. This community-driven approach, rooted in local expertise, exemplifies the efficacy of simple, cost-effective solutions to bolster resilience against environmental challenges and stimulate local employment opportunities, revitalizing agriculture in formerly flood-prone areas. 

Sekapuk Village's case underscores the potential of community-driven initiatives to combat environmental challenges. The construction of biopore infiltration holes and wells offers a sustainable, economically beneficial approach, reinforcing local resilience against flooding and environmental degradation. It stands as a testament to grassroots efforts' power in fostering more sustainable, resilient communities.