GREEN PRODUCTIVITY IN THE INDONESIAN LEATHER-TANNING INDUSTRY

Abstract

Green productivity (GP) is a strategy by which production processes are improved by efficiently using resources and materials and adverse impacts on the environment are reduced. This study aims to measure GP of an Indonesian leather-tanning industry and develop alternatives to current processes that would improve its environmental and economic impacts. Two small to medium tanneries (Tanneries A and B) in two provinces were used as a case study. Data were collected through direct observation, measurements, in-depth interviews, and activity documentation. Material flow was analyzed using a green material flow map to determine the six sources of green wastes and the environmental indicators. The GP Index (GPI) was used to measure GP. The best method by which to improve GP was determined using GPI to a ratio of GP along with expert analysis using an analytical hierarchy process. GPI at Tannery A, located in West Java, was 0.14 with economic and environmental indicators of 1.44 and 10.41, respectively. GPI at Tannery B, located in Central Java, was 0.16 with economic and environmental indicators of 1.60 and 9.99, respectively. GP in both tanneries was low because of their suboptimal use of water. High water consumption can lead to a high discharge of liquid waste. Six alternatives for Tannery A and four for Tannery B were created. According to GPI, GP ratio, and expert opinion, the best strategy by which to improve GP was water recycling in the soaking and liming processes. This strategy increased GPI at Tannery A to 0.18 and at Tannery B to 0.20. KEY WORDS: Green productivity, Green productivity index, Green productivity ratio, Indonesian leather-tanning industry