Challenges of Implementing Environmental Accounting in Micro, Small, and Medium Enterprises (MSMES) (Case Study: Siks Tofu And Fermented Soybean Cake Cooperative In Balikpapan City)

Abstract

Environmental Accounting involves identifying, measuring, and recording environmental costs considered by business entities. This practice can be implemented not only by large-scale entities but also by micro and small enterprises. The Somber Small Industry Center (SIKS), a small-scale producer of tofu and fermented soybean cake in Balikpapan City, has generated a significant volume of waste over three years (2020-2022). This waste is processed into new products such as fermented soybean cake fat, livestock feed, and water, which is reused in the production of fermented soybean cake. This study aims to understand the implementation of environmental accounting at the Somber Small Industry Center (SIKS) in their waste processing activities. The research employs a qualitative approach, utilizing semi-structured interviews to gather information from craftsmen. The findings indicate that environmental accounting practices have not yet been implemented by SIKS in their daily waste processing activities. The primary challenges include the craftsmen's lack of preparedness for record-keeping, the absence of comprehensive recording practices, and the lack of cost classification within the environmental accounting framework at SIKS. Therefore, to successfully implement environmental accounting at SIKS, collaboration between craftsmen and administrators is essential to regularly record environmental costs. The importance of recording environmental accounting lies in enabling SIKS to understand the costs associated with waste processing activities, thereby benefiting the economy of both the craftsmen and the area managers.