Influence Factor Analysis on Building Material Certification System with Ecolabel in Indonesia

These past few years in Indonesia the concept of environmentally friendly products started to become a trending topic among the professionals. One of these indicators is when the Ministry of Industry issued a regulation called "Standar Industri Hijau"hereinafter abbreviated as SIH in 2015. SIH stated that a production process of a product should be environmentally friendly and efficient. Not only green, but the company that wants to adopt SIH should also have a clear social responsibility program. Another regulation is issued by the Ministry of Environmental and Forestry. This regulation is known as "Standar Nasional Indonesia Ekolabel"or simply called "SNI Ekolabel", a regulation that more focuses on the product. But there is a new problem that arises, that becomes a concern through all those professionals. The amount of companies that could adopt or follow those standards is still quite small. Many said that those standards are too rigorous to adopt. Seeing this problem, some of the professionals with the endorsement of some company, establish a Non-Governmental Organization called Green Product Council Indonesia. Green Product Council Indonesia is an NGO that publishes an environmentally friendly certification scheme known as Green Label Indonesia, a less rigorous standard for environmentally friendly products, especially a building material and product. But still, the number of companies that already have been certified to these standards is small in number. Therefore the goal of this research is to analyze the barriers that preventing or the factors that influencing a company to certify its products with ecolabel in Indonesia. The methodology which will be used in this research is the Structured Equation Model (SEM).