Analysis of the Role of Small and Medium Metal Industries in Encouraging Sustainable Development in Sidoarjo Regency

Abstract

Small and Medium Industries (SMIs) in the metal sector located in Sidoarjo Regency play a significant role in supporting regional economic development, yet they face various challenges related to sustainable development. This study aims to evaluate the contribution of metal SMIs to sustainable development by assessing key aspects, including innovation in management, supply chain performance, product value-added, workforce development, and environmental impact. A qualitative descriptive methodology with a case study approach was employed, utilizing secondary data from BPS, the Ministry of Industry, Bappeda Sidoarjo, and other academic sources. The findings suggest that metal SMIs contribute to Gross Regional Domestic Product (GRDP) growth and enhance supply chains, although limitations persist in the adoption of new technologies, branding capabilities, and quality assurance systems. Product value-added increases through differentiation efforts, while human resource development and environmental impact management remain key areas of attention. The study emphasizes that the success of metal SMIs in promoting sustainable development requires stronger support from local policy frameworks, technology transfer, and the implementation of environmentally friendly industrial standards. The results of this research are expected to enrich discussions on the integration of sustainability and innovation within the SMI sector and provide strategic recommendations for policymakers and industry stakeholders.