Towards sustainable food production: exploring the opportunities and challenges in Indonesia

Abstract

The increasing intensity of food production in the past few decades have been considered as giving rise to the greenhouse gas (GHG) emissions. This includes the large energy usage, food waste throughout the supply chain, air and water pollution. The sustainable production concept can potentially reduce the food waste within the production process whilst maintaining economic prosperity. Indonesia is the largest GHG emitter in Southeast Asia. This research draws an empirical finding from the food and beverage (F&B) sector in East Java to explore the level of environmental awareness and companies’ engagement with environmental activities. Drawn from the survey of 59 F&B companies, this research examines the key opportunities and challenges for the companies to engage with sustainability. The stepwise regression analysis method was applied to explore the firm-level characteristics on the environmental awareness and practices. This research is concluded with a proposed strategy for Indonesian government to make a transition toward sustainable production within the F&B sector. It is suggested that Indonesia needs more collaborative efforts within its decentralized governance system to an inclusive and effective sustainable food production policies.