Detail Jurnal Penelitian

 The basic chemical industry in Indonesia, especially in Cilegon, Banten, continues to confront significant challenges in addressing the environmental consequences of its resource-intensive production processes. Green Accounting and Material Flow Cost Accounting (MFCA) have gained recognition as complementary strategies that can enhance environmental performance by improving the transparency of environmental cost disclosures and promoting more efficient material management. This study investigates the impact of Green Accounting and MFCA on environmental performance in basic chemical companies operating in Cilegon, Banten, over the period from 2022 to 2024. Adopting a quantitative methodology and utilizing secondary data, the research analyzes the annual and sustainability reports of six publicly listed basic chemical companies on the Indonesia Stock Exchange (IDX), resulting in firm-year observations spanning 2022 to 2024. The government’s PROPER rating serves as a proxy for environmental performance, while Green Accounting and MFCA are measured using indices based on disclosures: (i) environmental cost disclosures (Green Accounting), (ii) MFCA cost-related disclosures, and (iii) MFCA physical/output-related disclosures. Multiple linear regression with robust standard errors is employed to assess the hypothesized relationships. The findings reveal that Green Accounting and MFCA cost-related disclosures are positively correlated with environmental performance, whereas MFCA physical/output-related disclosures do not exhibit a statistically significant effect. These results imply that enhancing transparency in environmental cost reporting and focusing on cost-oriented MFCA practices are more strongly associated with improved environmental performance than MFCA disclosures related to production output. This study contributes to the literature on sustainability accounting by offering firm-level insights from an environmentally sensitive industrial cluster and provides practical guidance for managers and regulators to foster better disclosure practices and material-efficiency governance in the basic chemical industry

 Keywords: Green Accounting; Material Flow Cost Accounting (MFCA); PROPER; Environmental Performance; Basic Chemical Industry