Environmental sustainability criteria in the multi-oriented shipbuilding industry in Indonesia

Abstract

ABSTRACT Preliminary studies have highlighted the potential of Indonesia's geographical, suprastructural, and infrastructural conditions to develop a strong shipbuilding industry, which is crucial for the success of the world maritime axis program and sea toll. However, despite high expectations, the industry faces challenges that threaten business sustainability, leading to bankruptcies. To assess business sustainability, it is essential to establish criteria and sub-criteria, which previous studies have overlooked, focusing only on technical and economic factors. Therefore, this research generally aims to develop and analyze environmentally friendly sustainable criteria in the multi-oriented shipyard industry so that it develops in accordance with the vision, mission, goals and strategies. The criteria development process involves identifying and reviewing relevant articles, classifying and refining the criteria, conducting expert validity testing, Pearson Product Moment validity testing, and reliability testing using the Alpha (Cronbach) method. The expert validity testing indicates that ‘people' received the highest average score of 4.67 among the criteria, and ‘infrastructure' scored the highest in the sub-criteria, with a score of 4.75. The validity testing with the Pearson Product Moment method demonstrates that the criteria and sub-criteria are valid and the reliability of 32 sub-criteria indicating their influence on promoting multi-oriented and environmentally sustainable shipbuilding industries.