Integrating Green Costing into the Cost of Goods Manufactured of Catering MSMEs in Malang
DOI:
https://doi.org/10.35870/ljit.v4i2.8770Keywords:
Cost of goods manufactured; Environmental management accounting;Green costingAbstract
Food-sector MSMEs contribute substantially to the Indonesian economy, yet their conventional cost of goods manufactured (COGM) calculation ignores environmental costs such as waste handling and energy consumption. This study implements a green costing approach in the COGM model of catering MSMEs in Malang City as a strategy towards simultaneous economic and environmental sustainability. A mixed methods explanatory sequential design with a multiple-case study was applied to three catering MSMEs selected purposively. Qualitative data from nine in-depth interviews, participant observation and internal documents were analysed using reflexive thematic analysis, while quantitative data were analysed using descriptive statistics and a costing model that traces five environmental cost components through the eco-costs and averting costs methods and charges them per portion. Coding produced 142 initial codes consolidated into ten sub-themes and four themes: habit-based COGM calculation, environmental costs as hidden costs, limited resources and accounting literacy as barriers, and market pressure as a driver. Integrating environmental costs raised COGM by 8.40 to 15.60 percent, with an average of 12.33 percent and an average environmental cost of IDR 1,890 per portion, the increase being inversely related to business scale. A joint display of the two strands explains this pattern, and a four-module spreadsheet-based COGM model was developed and pilot-tested.
Downloads
References
Amicarelli, V., Roe, B. E., & Bux, C. (2022). Measuring food loss and waste costs in the Italian potato chip industry using material flow cost accounting. Agriculture, 12(4), 523. https://doi.org/10.3390/agriculture12040523
Bank Indonesia. (2023). Kajian UMKM berwawasan lingkungan: Strategi pengembangan ekonomi hijau di Indonesia. Departemen Kebijakan Ekonomi dan Moneter, Bank Indonesia.
Braun, V., & Clarke, V. (2022). Thematic analysis: A practical guide. SAGE Publications.
Burritt, R. L., Hahn, T., & Schaltegger, S. (2023). Environmental management accounting: A pragmatic instrument for strategic decision-making in the context of sustainability. Journal of Cleaner Production, 397, 136568. https://doi.org/10.1016/j.jclepro.2023.136568
Bux, C., & Amicarelli, V. (2022). Material flow cost accounting in the food industry: Evidence from meat processing. Journal of Cleaner Production, 376, 134248. https://doi.org/10.1016/j.jclepro.2022.134248
Christ, K. L., & Burritt, R. L. (2015). Material flow cost accounting: A review and agenda for future research. Journal of Cleaner Production, 108, 1378–1389. https://doi.org/10.1016/j.jclepro.2014.09.005
Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). SAGE Publications.
Dasanayaka, S. W. S. B., Ranaweera, R. A. A. K., & Samarawickrama, R. (2022). Barriers and drivers of environmental management practices in SMEs: A systematic review. Journal of Small Business and Enterprise Development, 29(4), 565–589. https://doi.org/10.1108/JSBED-01-2021-0012
Databoks. (2024). Jumlah UMKM di Indonesia mencapai 66 juta unit pada 2023. Katadata.
Ecocostvalue. (2023). Eco-costs methodology: Shadow prices for environmental impact assessment. Ecocostvalue Foundation.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Hanif, R., Mustika, R., & Susanto, A. (2023). Environmental management accounting practices and stakeholder pressure: Evidence from Indonesian firms. Journal of Accounting and Sustainability, 5(2), 112–129. https://doi.org/10.1000/jas.v5i2.123
Latifah, S. W., & Soewarno, N. (2023). Environmental accounting strategy and sustainability performance: The mediating role of waste management in East Java MSMEs. International Journal of Environmental, Sustainability, and Social Science, 4(2), 345–360. https://doi.org/10.38142/ijesss.v4i2.567
Miles, A., Smith, P., & Jones, L. (2025). Sustainable development goals and food systems: Interconnections and policy implications. Sustainability Science, 20(1), 45–62. https://doi.org/10.1007/s11625-024-01567-8
Ministry of Cooperatives and SMEs. (2024). Perkembangan UMKM di Indonesia tahun 2023. Kementerian Koperasi dan Usaha Kecil dan Menengah Republik Indonesia.
OECD. (2025). Environmental footprint of SMEs: Policy considerations for greening small businesses. Organisation for Economic Co-operation and Development Publishing. https://doi.org/10.1787/9789264300000-en
PwC. (2024). Global consumer insights survey 2024: Sustainability and consumer behaviour. PricewaterhouseCoopers.
Rahman, M. M., & Islam, M. S. (2023). Green costing for sustainable food production: A conceptual framework. Journal of Environmental Accounting and Management, 11(3), 245–262. https://doi.org/10.5890/JEAM.2023.09.005
Swalih, M. A., Kumar, S., & Adarsh, K. (2024). Environmental accounting practices in food-sector MSMEs: Barriers and opportunities. Journal of Small Business Management, 62(1), 112–135. https://doi.org/10.1080/00472778.2023.1234567
Taheri, B., & Okumus, F. (2024). Mixed methods research in tourism and hospitality: A practical guide. International Journal of Contemporary Hospitality Management, 36(2), 345–362. https://doi.org/10.1108/IJCHM-01-2023-0012
Thongplew, N., Onwong, J., Ransikarbum, K., & Kotlakome, R. (2023). Mainstreaming local organic foods: Organic food provision in a fresh market to promote organic production-consumption system in emerging economy. Environment, Development and Sustainability. https://doi.org/10.1007/s10668-023-03823-8
Usul, H., & Olgun, E. B. (2025). An analysis of material flow cost accounting in companies using different cost accounting systems. Heliyon, 11(4), e42555. https://doi.org/10.1016/j.heliyon.2025.e42555
Vogtlander, J. G., Brezet, H. C., & Hendriks, C. F. (2001). The virtual eco-costs '99: A single LCA-based indicator for sustainability and the eco-costs-value ratio (EVR) model for economic allocation. The International Journal of Life Cycle Assessment, 6(3), 157–166. https://doi.org/10.1007/BF02978734
Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE Publications.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Apit Miharso, Rizky Prasetya, Hesti Wahyuni, Subekhi Hadi Purnomo
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Copyright Retention and Open Access License
Authors retain copyright of their work and grant the journal non-exclusive right of first publication under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
This license allows unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
2. Rights Granted Under CC BY 4.0
Under this license, readers are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, including commercial use
- No additional restrictions — the licensor cannot revoke these freedoms as long as license terms are followed
3. Attribution Requirements
All uses must include:
- Proper citation of the original work
- Link to the Creative Commons license
- Indication if changes were made to the original work
- No suggestion that the licensor endorses the user or their use
4. Additional Distribution Rights
Authors may:
- Deposit the published version in institutional repositories
- Share through academic social networks
- Include in books, monographs, or other publications
- Post on personal or institutional websites
Requirement: All additional distributions must maintain the CC BY 4.0 license and proper attribution.
5. Self-Archiving and Pre-Print Sharing
Authors are encouraged to:
- Share pre-prints and post-prints online
- Deposit in subject-specific repositories (e.g., arXiv, bioRxiv)
- Engage in scholarly communication throughout the publication process
6. Open Access Commitment
This journal provides immediate open access to all content, supporting the global exchange of knowledge without financial, legal, or technical barriers.
