Posted by : Ridwan Sobirin Friday, September 28, 2012

The existence and role of the concept of Green Economy in Indonesia at this time is increasingly taken into importance. With the condition of economy as well as the business sector in our country that still depend on the supplies of natural resources, the existence of a concept that could balance the need for benefits and the necessity of the preservation of nature and its resources is needed. Thus, a concept where an economy activity that is concerned in the environmental condition, or we often call it as The Green Economy, was born.

In its progress, Green Economy is indeed gradually have been reducing the environmental damage caused by economic and business activities, particularly by big companies. However, in fact, there is much gap between the use of natural resources and its maintenance. The proportion of Corporate Social Responsibility (CSR) for the environmental conditions are not sufficient to overcome the environmental damage that occurs, especially if compared with the profit they receive. Thus, another method that not only depends on the awareness from those big companies that usually aim to maximize their profits. Here, the strategic role of Small and Medium Enterprises can be played.

Small and Medium Enterprise (SME/UMKM) has a very significant role in the economy of our country, whether by the quantity of human resources involved or by its contribution to the economy. More than 99% of the workforce in our country is in this sector. In addition, more than 50% of the GDP of our country comes from this one sector.

With the large number of human resources working in this sector, the effects on the environment would therefore be greater. Active involvement of the Small and Medium Enterprise sectors in the Green Economy program will give significant progress towards the Sustainable Development movement. Green Small and Medium Enterprise (Green SME) is an alternative method to help promote the establishment of strategic objectives of the Green Economy that seeks to improve the harmony of economic and environmental sustainability.

This sector has significant contribution towards environmental damage such as pollution and the residue from its production process, process of production, until the method to get the resources for the production process that is conducted by the Small and Medium Enterprises. These realities we can find in our daily life such as pollution in the river, garbage, land pollution, and other environmental damage. 

By reducing any kind of pollution and some damages caused by this sector (SME) then we are already helping to contribute the environmental preservation. In the other hand this sector is also the main sector in terms of handling the environmental problems. There have been SMEs that produce many kinds of product based on the 3R (Reduce, Reuse, and Recycle) principle such as Small and Medium Enterprises in furniture merchandise, handicraft, aluminum foil, organic garbage, and plastic. Therefore if we can lead Small and Medium Enterprises Sector into Green Economy concept then the positive effect would be greater to the environment condition in this country.

Green SMEs is one of the alternative methods to help realize the strategic purposes of Green Economy that aims to harmonize between the economic activities and the preservation of nature. The Green SMEs refers to the SMEs that are concerned to the environmental aspects as an important component in the operation of their business or even to use and process the results of waste from the environment as well as the rest of the production process is to be turned into products that have high economic value.

Moreover, with the green production and product method that offered in this paper, more benefits would be received by the SMEs including the larger market for their products, particularly in international markets. In addition to reduce the nature and environment degradation, through Green Economy approach in this Green Economy we can strengthen our product competitiveness and recognition in the international level.

This method is effective since there are many parties involved in this sector, therefore its effects would be significant on the economic and the environmental progress of our country.



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