Green Manufacturing Challenge in Small and Medium Industries (SMEs) Batik Laweyan Surakarta

Small and medium industries (SMEs) are the main contributor of the economic growth in the countries, especially developing countries. On the other hand, SMEs also produce serious problems to the environment. Therefore, SMEs, especially the textile and apparel sector need to apply green manufacturing (GM). GM can reduce the amount of waste and pollution produced. It can lead to financial benefits and a positive public image of the SMEs if properly implemented. It is a challenge to apply GM in SMEs because their limitation of knowledge and resources. It needs a study the enabler and inhibiter factors to the application of GM. It need also an analysis how the factors related each other. The aim of this study is to determine the most significant enabler and inhibiter factors in applying GM to SMEs at Kampung Batik Laweyan Surakarta. This study uses Interpretive Structural Modeling (ISM) approach to compare the perceptions of respondents regarding the relationship of each factor. The results show that the main enabler factor is the implementation of environmental regulations and strict supervision, while the main inhibiter factor is the lack of subsidies provided for SMEs to implement GM