The Role of Education on Green Investment in Pasar Governance
Budi Supriatono Purnomo
1
, Alfira Sofia
1
, R. Nelly Nur Apandi
2
and Denny Andriana
3
1
Universitas Pendidikan Indonesia, JL. Dr Setiabudi 229, Bandung, Indonesia
2
Universitas Indonesia, Depok, Indonesia
3
University of Strathclyde, Glasgow, Scotland
Keywords: Education, Green Investment, and Pasar Governance.
Abstract: The increased development and modernization in various sectors has driven public sector management to
initiate a mutual partnership with private sector entities. Private sectors are expected to act as investors and
bring professionalism in the development of pasar. However, the process has also made some of the
administrators of traditional market to focus more on gaining profit and neglected the surroundings. This
study aims to describe what factors that are necessary in achieving a good pasar governance. The research
method applies in this study is a literature study and depth interview with multiple environmental education
experts. The results of the study provide an illustration that in an effort to realize a good pasar governance, it
is necessary to provide education on green investment.
1 INTRODUCTION
The existence of traditional indigenous pasar (pasar)
in millennium era is decreasing (Purnomo et.al,
2016). Pasar are claimed to be no more able to meet
merchants and consumers effectively and efficiently.
Private modern pasar or online mall have become
other alternatives used by merchants and customers to
do trade transactions (Susilo; Indiastuti et.al, 2008))
Poor infrastructures and facilities have triggered
merchants and consumers to leave pasar (Purnomo,
et al 2016).
The shift of transaction from pasar to private
managed modern pasar and/or virtual pasar has
become an important note for Local Governments
(Regency/City) in providing public services
optimally to their citizens. This has encouraged the
government to accelerate development involving
private sectors to improve pasar facilities (Holidin
and Handini, 2014). Private sector involvement in
managing pasar has become a dilemma in realizing
public service need. On one side, pasar infrastructure
development can improve pasar facilities, but on the
other side, private sectors are more concerned in
gaining profits for short-run, putting aside
sustainability development.
One of the impacts of private sectors in pasar
development is the increase of pasar stall rental cost
which is not affordable for most merchants. Hence,
welfare and economical improvement can only be felt
by merchants with big capital. Moreover, there is lack
of communication between management
team/developer-merchants-consumers and
government resulting in government pasar condition
far beyond people's expectation. These conditions can
only engender difficulties for pasar constructed even
with luxurious infrastructures to attract merchants or
consumers due to the high price of pasar stall or non-
strategic location.
Researches Purnomo et.al (2016) and Sofia et.al
(2015) have shown that government investment that
puts forward environmental, social, and economical
aspects has become a critical issue in realizing
sustainability governance. Profit-oriented
development will be considered a success for a short-
term, but in long term, this will be a failure.
Development that can support future generation's
needs in clean and safe environmental is a sustainable
development. However, numerous pasar
developments and management in Indonesia
involving private sectors have not focused on
environmental aspect.
Awareness on the importance of green investment
that considers environmental aspect in its
development and management (Sofia et.al, 2015;
Martinelli and Midtun, 2010) can be raised through
good education process both formally and informally
to all pasar stakeholders. Awareness on the
Purnomo, B., Sofia, A., Apandi, R. and Andriana, D.
The Role of Education on Green Investment in Pasar Governance.
In Proceedings of the 1st International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP 2017) - Transforming Islamic Economy and Societies, pages 527-531
ISBN: 978-989-758-315-5
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
527

importance of green investment will encourage
environmentally friendly pasar governance. Based on
the above description, a study on green investment
education at higher level discusses in detail important
matters to be implemented in pasar management to
realize environmentally friendly pasar is necessary.
Contributions of this study are: 1) earlier studies
analyzing pasar governance have not included
education aspect and the importance of green
investment in pasar development and governance.
Therefore, this study can complete the literature on
these aspects; 2) this study aims to offer an insight for
policy establishment for stakeholders in pasar
development to put forward environmental aspect as
a measure to realize sustainability governance.
2 THEORETICAL STUDY
2.1 Green Investment Education
Green investment is a process of funding in goods or
services purchasing projects that consider business
sustainability not only on short term projects, but also
on long-term ones by paying attention on
environmental aspect that can maintain their business.
(Li et al, 2017; Stoever and Weche 2017).
Environmental aspect is a crucial factor that must be
considered by business actors because their
enterprises shall be beneficial for all stakeholders
including future generations who have the right to
have clean and comfortable environment.
For a short term, enterprise operational process
considering environmental aspect even further will
need higher cost as a logical consequence. However,
in a long term, the benefice that will be obtained by
the enterprises will be greater compared to the cost
spent because it will maintain the sustainability of
their business. The awareness of the long-term
benefice from enterprise’s investment that is
environmentally friendly may arise through
education.
Green investment education encourages all
stakeholders to understand the importance of
allocating available resources to projects or works
that pay greater attention to environmental aspect.
Business actors' concern to the balance of ecosystem
and comfortable environment is not easy to develop
at once (Candamio et al, 2018). This awareness may
arise if people around has provided them with these
values since a long time, and this awareness will arise
and be internalized if other people have collective
understanding of these values.
Education of environment is important to be
taught at early childhood to higher education level
(Candamio et al, 2018) so that young generations who
will be future leaders will always pay attention to
their environment in economical decision making.
Education of environment is not only needed for
future investors who have sufficient fund to invest in
projects/works. Education of environment is also for
consumers so that they can think wisely in choosing
products from suppliers who have high concern of
environment. And if necessary, education of
environment is also intended for government officials
in local decision making encouraging sustainability
governance.
2.2 Pasar Governance
Good governance is a series of process, habits,
policies, and regulations implemented by an
organization in directing, managing, and controlling
the operation of the organization. Good governance
in public sectors has become a concern of many
parties because it is related to public infrastructures
and facilities () One of these facilities is government-
managed pasar. Governance of public sectors is not
significantly different than that of private sectors the
principles of good governance are transparency and
accountability that must be met in managing public
services.
The paradigm of public services is always
identified as inefficiency, poor quality, complicated
bureaucracy resulting in the new public management
emphasizing effectivity, efficiency, and
economization (Fatemi and Behmanesh, 2012). This
concept started to develop in England, However, the
development of this concept causes polemics, i.e.,
generalizing public services to meet efficiency
causing public services to focus not to service quality
but more to profit and loss experienced by the
country. This concept is not relevant for some basic
services such as health, education, and public space
services. Government cannot operate like enterprises
which are profit-oriented. Therefore, the new public
governance has aroused to complete the concept of
the new public management (Kapucu, 2008)
Government services in providing public space
such as pasar shall also focus on long-term
management. One of determining factors for
continuity of a country is government projects that are
concerned with environmental aspect to be able to
provide clean and healthy environment for future
generations. Awareness on the importance of green
investment shall be implemented through formal and
informal education. Formal education of environment
ICIEBP 2017 - 1st International Conference on Islamic Economics, Business and Philanthropy
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may start at early child hood education to high
education level. Environment education at higher
education can be focused on selecting government
project investment that supports nature preservation
also called as green investment education.
Behavioral Theory states that changes in one's
attitude or decision is based on learning experiences
and process. Therefore, environmental concerns are
important to be anchored at higher education so that
students, the future leaders, can take economical
decisions that put forward environmental concern.
Green investment education is important so that
public services, especially pasar facilities and
infrastructures can be well realized.
3 RESEARCH METHOD
This research uses qualitative method. To obtain a
thorough overview on green investment education in
providing pasar for public, researchers conducted a
survey to several pasar managed by the government
of the Province of West Java and deep interview to
pasar management practitioners and experts in
environment education. Data validity and reliability
are tested using triangulation method, i.e.,
comparison between the results of observation,
interviews and existing theories.
4 RESULTS AND DISCUSSION
Green investment education is necessary to arise
awareness and deep understanding of all consumers,
business actors, government officials, and other
policy holders to create pasar with good governance
and a pasar that pays attention to environmental
aspects. Some important subjects that need to be
informed in green investment education at higher
education are:
4.1 Determining Appropriate Pasar
Location through Socio-Cultural
Approach
Determining pasar location is a classic problem faced
by the government. On one side, the infrastructures
and facilities of existing pasar are inadequate. Often,
pasar are the cause of traffic jam due to their location
that is nearby the roads, also called as traffic jam due
to "spilled pasar". Pasar reallocation process
sometimes causes polemics because it is not strategic
and inaccessible, thus the probability of reallocation
failure is very high. Also, pasar reallocation does not
consider social aspect, local community's cultural
aspect, and environment.
Based on the result of depth interview and
physical observation, it can be concluded that pasar
location determination is important in improving
pasar economy because inadequate pasar location
can disinterest business actors and consumers to do
transaction in the pasar. Pasar management’s team
unwillingness worsens this to select a location that
pays attention to environmental aspects. For example,
some pasar are found in former waste disposal site,
water absorption is, or near watershed and settlement
area. Therefore, green investment education shall
provide understanding on the importance of pasar site
selection that considers this socio-cultural aspect.
4.2 Environmentally Friendly Pasar
Infrastructures and Facilities
Improvement
Environmentally friendly pasar infrastructures and
facilities shall be an important focus of all pasar
stakeholders. Many pasar do not pay attention fully
on cleanliness and environment. For example, many
pasar have not had yet disposal procedures, good
waste management, have not met spatial eligibility
such as poor lighting, poor sanitation, practically no
green open space causing it hot and uncomfortable for
pasar users.
Based on the result of depth interview and
physical observation, it can be concluded that pasar
management team shall have high commitment to
provide environmentally friendly infrastructures and
friendly to create comfort and satisfaction for pasar
users to do transactions in the pasar. However, in
practice, pasar in Indonesia tend to be dirty and
released unpleasant odor due to poor waste
management. Humidity also causes waste in
Indonesia gets rotten faster than waste in Europe
causing unpleasant odor.
Excessive use of plastic shall be reduced by
educating both merchants and consumers. Consumers
shall use a shopping bag that can be re-usable.
Reduction of plastic usage may enable to fasten waste
management.
Good solid waste and waste management and
improvement of adequate pasar infrastructures and
facilities may encourage pasar economy. In the
future, pasar are expected not only as a place to meet
between consumers and merchants of vegetables,
meat, and other basic needs. Pasar may also be a
place to meet for youngsters to do their activities in
the evening, or as a meeting place for business actors
and other social communities, such as regular social
gatherings.
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4.3 Creating Effective Communication
Media between Management-
Merchants-Consumers
Communication process between management,
merchants, and consumers have not run effectively
making pasar unable to encourage local economy.
Merchants have always been complaining about
rental cost in pasar and the services that are not worth
the price. High rental cost making merchants difficult
to compete with modern pasar that offer better and
more comfortable facilities. Pasar management have
never thought to make a new breakthrough to
improve sale, such as advertisement or organizing
certain events to attract consumers directly.
Ineffective communication between merchants
and consumers is also one of the cause of low sale.
Indeed, one of the causes is merchants' capacity to
communicate and to be friendly in serving
consumers. Especially in certain hours, merchants are
overwhelmed with the number of consumers.
However, this will influence consumers' satisfactory,
which in turn will impact on turnover.
Communication between merchants and
consumers, and between consumers and management
shall be improved by training, so that each party can
improve better services, and in turn will improve their
turnover. Education on aspects that improve
consumers’ satisfactory shall focus on creating good
pasar governance.
4.4 Policy Synergy between Central
Government-Provincial-
Regency/City
Lack of policy integration of central government,
provincial government, and regency/city government
results in clash of policies. Sometimes, policies at
local level are not in accordance with the direction
and policies of central government. Continual policy
changes make local governments difficult to adapt
new policies set by central government. Changes in
direction causes policy changes at central and local
levels significantly. Therefore, it is necessary to
synergize policies related to pasar management at
local, provincial, and regency/city levels.
Based on the result of depth interview and
physical observation, it can be concluded that
government policies in pasar management at central,
provincial, and regency/city level shall support each
other. New policy establishment on pasar
management shall consider existing policies in field.
Shall there be significant policy changes, actions shall
be expected to overcome the differences.
Policy establishment is expected to be planned for
a long-term period by considering existing potential
and resources. Policy changes that happen quickly
and continually result in difficulties faced by local
government in implementing policies set up by
central government. Local government that has just
understood and implemented a policy set up by
central government must put an effort in adapting
new policies if at the same time central government
issues new policies. This causes the low quality in
providing pasar services.
Another problem related to government policy is
selecting the proper pasar developer. Government
shall be able to select pasar developer that has
commitment in maintaining and preserving natural
environment, and not the one that is profit oriented.
Fraudulent practices in selecting pasar developer
shall be a special attention for pasar stakeholders.
This is important to follow-up because shall there be
any bribery between developer and government, it is
certain that pasar development process may not run
optimally. Indeed, profit earned by developer will be
lower due to unnecessary bribery cost.
Education on synergetic policy preparation is an
important study in green investment practices. All
bureaucratic elements both at central and local level
shall have collective understanding on policy
establishment on pasar management team that
integrate environmental aspect. Thus, shall there be
understanding and awareness of this aspect is existent
in future leaders, policy establishment of pasar
management will pay attention on the need of clean
nature and environment.
4.5 Risk Management of Pasar
Management
Environmental uncertainty causes threat and disaster
which can cause pasar operational process not
working well as it should be. Disaster that often
happens in pasar management is fire. Therefore, risk
management process shall be applied in pasar to
avoid disaster or at least minimize the disaster.
Based on the result of depth interview and
physical observation, it can be concluded that pasar
management has not focused on risk management.
Existing pasar management is not preventive to
minimize risk, but it is more to handle potential
disaster. For example, electrical installation is not
improved and verified regularly by management team
causing fires due to short current electrical line that
often happens. In addition, there is no hydrant facility
and fire tube available at pasar area causing the
potential damage due to fire is higher.
Merchants and pasar management team in field
has never received training to respond on disaster. If
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merchants understand well disaster training, it is
expected that risk of damage due to disaster can be
minimized because merchants have the
understanding to respond disaster, thus responding
fast in handling it.
4.6 Accountability and Financial
Transparency Report in Pasar
Accountability and financial transparency report in
pasar shall be an important aspect in teaching related
to green investment because government report on
pasar management regularly will encourage the
government to continually put an effort in providing
services optimally to the community. Indeed,
published written report is expected to enable readers
to be the parties controlling every policy and
government policy implementation process.
Based on the result of depth interview and
physical observation, it can be concluded that
financial report transparency in pasar has not been
implemented optimally because budget report and
income realization and pasar purchases are not
published in detail at technical implementation unit
level of each pasar. With this publication, it is
expected to enable public to know all activities that
will be and have been conducted in pasar to preserve
the environment.
Education on financial report mechanism and
detailed activities per pasar should have been
conducted by pasar management team so that this
report can be published to pasar stakeholders. The
measure in reporting on a regular basis will enable to
encourage sustainability governance.
5 CONCLUSIONS
Achieving a good pasar governance requires
education in green investment that focuses on: 1)
determining suitable location for pasar with socio-
cultural approach 2) improving environmentally
friendly pasar infrastructures and facilities 3) create
efficient communication system between manager-
merchants-consumer; 4) policy synergy between
Central Government-Provincial-Regency/City; 5)
risk management of pasar management; and 6)
financial accountability and transparency report in
pasar.
This study aims to propose insights for pasar’
stakeholders in policy making process for developing
pasar. This research proves that green investment
education is necessary at higher education level, such
as to give understanding and awareness of the
importance of environmental aspect in pasar
development and management by the government.
The limitation of this research is that it does not
describe the implementation techniques of green
investment education at higher education
environment. Therefore, future research may include
the procedures of green investment education at
higher education level.
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