Development of an Environmental Accounting Framework to Support Sustainable Fisheries Industry Governance in the Coastal Area of Bitung City

Abstract

Bitung City is a major fisheries hub in Eastern Indonesia's blue economy, yet environmental costs in its fisheries value chain remain invisible in accounting records. This study examines current environmental cost accounting practices, stakeholder perceptions and roles, and relevant environmental cost components, and proposes a conceptual tiered environmental accounting framework for sustainable fisheries governance. A qualitative case study was conducted through semi-structured interviews with 21 informants from seven stakeholder groups: fishers, collectors, processing micro, small, and medium enterprises, medium-to-large companies, government, the coastal community, and academics. Data were analyzed thematically. The results show that environmental costs are incurred at every scale but remain implicit, merged into general operating costs, factory overhead, or the anfrak advance system, and no informant applies the full cycle of identification, recognition, measurement, presentation, and disclosure. Stakeholder acceptance is high but capacity is low; motives differ by scale, market signals do not reach upstream actors, and government roles are fragmented. Relevant components extend Hansen and Mowen's quality-cost categories—three of which are supported by business actors—with resource use and by-product benefits, while physical measures suit micro actors better than monetary ones. The study proposes a tiered environmental accounting framework that scales the five-stage cycle to business capacity, supported by a multi-stakeholder governance layer.