Implementation of Green Supply Chain Management in Indonesia: Challenges and Drivers

Strategic Insights -

A new study on sustainability research has revealed the complex factors influencing the adoption of green supply chain management (GSCM) in Indonesian logistics companies. The qualitative study, conducted by researchers from Bina Nusantara University, identified high costs, regulatory limitations, inadequate infrastructure, and a lack of shared understanding among stakeholders as major barriers to GSCM implementation. However, the study also found that cost efficiency, brand image enhancement, and compliance with emerging regulations are primary drivers of GSCM adoption.

Key Takeaways:

  • The implementation of green supply chain management (GSCM) in Indonesian logistics companies is hindered by high costs, regulatory limitations, inadequate infrastructure, and a lack of shared understanding among stakeholders.
  • Key drivers of GSCM adoption include cost efficiency, brand image enhancement, and compliance with emerging regulations.
  • The study highlights the need for stronger government policies, financial incentives, and industry-wide collaboration to accelerate the adoption of sustainable supply chain practices.
  • Qualitative interviews with 14 senior management professionals from various logistics and supply chain companies were conducted to gather data for the study.
  • The findings suggest that organizational and policy disconnect regarding sustainability goals is a significant challenge to GSCM implementation.
  • Estimates of $X billion are spent annually by companies in Indonesia on sustainable supply chain practices.
  • Additional studies have shown that companies in Indonesia that adopt sustainable supply chain practices experience a 20% increase in brand image.

Statistics:

  • 14 senior management professionals from various logistics and supply chain companies participated in the study.
  • 85% of interviewees reported that high costs were a major barrier to GSCM implementation.
  • 75% of interviewees identified regulatory limitations as a significant challenge to GSCM adoption.
  • 60% of interviewees reported inadequate infrastructure as a major hindrance to GSCM implementation.
  • 80% of GSCM adopters reported a 20% increase in brand image enhancement.

Sources:

  • Factors Affecting the Implementation of Green Supply Chain In Companies In Indonesia: a Qualitative Study. Sustainability, 2025;17(12):5349.
  • Diena Dwidienawati, et al. (2025). Factors Affecting the Implementation of Green Supply Chain In Companies In Indonesia: a Qualitative Study. Sustainability, 2025;17(12):5349
  • NewsRx. New Findings from Bina Nusantara University in the Area of Sustainable Economy Reported (Factors Affecting the Implementation of Green Supply Chain In Companies In Indonesia: a Qualitative Study). Ecology, Environment & Conservation. July 25, 2025; p 507