Ecology, Environment and Conservation Paper

THE FRAMEWORK OF GOVERNANCE MECHANISM USING DIGITAL CONTROL TOWER FOR MANAGING INDUSTRIAL AREA TOWARDS ECO-INDUSTRIAL PARK BASED ON THE GAP ANALYSIS

Fatah Sulaiman,M. Iman Santoso, and Guswandi

Abstract

The eco-industrial park (EIP) designs an industrial symbiotic network by collaborating enterprises using each other’s products or wastes in a green atmosphere. Nevertheless, the common area supervision only pays attention to the institutional framework operations, production and the manufacturing impact to the ecosystem as considered factor of an eco-industry. There are very few papers that have noticed the construction area of eco-industry in terms of environmental impact and harmonized such area with the proper governance structure. Ecological issues are not only related to waste and clean production but should also be associated with the governance system of supply, production and distribution in an environmentally sustainable. This research aimed to study and propose scenarios, strategies, operational recommendations to develop an eco-industrial park from the existing park in Cilegon, Indonesia’s and linked it with the holistic governance system. The method of this research firstly uses the gap analysis that study the Cilegon industrial region at the present situation compare to the ideal criteria of eco-industry. The data collected through a survey that represents an observation, in-depth interview, questionnaires and expert judgments. The results show that the current Cilegon Industrial Park (CIP) has many gap standards of criteria to become an eco-industrial park. Based on this gap analysis and solutions, the author develops a governance structure that employs green and lean supply system. The EIP factors inside the governance structure are projected into relational management (RG) or contractual governance (CG). Then, suppliers involved are directed into a transaction specific assets investment, which is not only product oriented but also environmental friendly. Besides that, the EIP will also be measured by its quality, flexibility, and efficiency. All of the processes are monitored and managed by an EIP Control Tower.