THE ROLE OF GREEN ACCOUNTING AND MATERIAL FLOW COST ACCOUNTING (MFCA) IN ENHANCING ENVIRONMENTAL PERFORMANCE IN THE BASIC CHEMICAL INDUSTRY IN CILEGON, BANTEN FOR THE PERIOD 2022-2025
DOI:
https://doi.org/10.8844/ddb2fw46Keywords:
Green Accounting, Material Flow Cost Accounting (MFCA), Environmental Performance, Basic Chemical Industry, Corporate SustainabilityAbstract
The basic chemical industry in Indonesia, particularly in Cilegon, Banten, faces significant challenges in managing the environmental impacts arising from its production processes. The implementation of Green Accounting and Material Flow Cost Accounting (MFCA) is considered a potential solution to improve environmental performance by reducing resource waste and waste generation. This study aims to examine the impact of the implementation of Green Accounting and MFCA on environmental performance in the basic chemical industry in Cilegon, Banten, during the period 2022-2025. This quantitative research employs a survey design with purposive sampling, involving six basic chemical companies listed on the Indonesia Stock Exchange (BEI) and operating in the area. Data obtained from the companies' annual reports are analysed using multiple linear regression to test the relationships between the variables. The results show that the implementation of Green Accounting and MFCA (Production Costs) significantly impacts environmental performance, while MFCA (Production Output) does not have a significant effect. These findings provide important contributions for companies in the chemical industry to enhance transparency in environmental cost management and material efficiency.
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