Analysis of the concept of circular economy application by small and medium industries in West Java province (a case study: Padamukti and Cibodas villages, Solokan Jeruk district, Bandung regency)

Abstract

Although small and medium enterprises (SMEs) have played an important role in Indonesia’s economic growth, they bring various environmental problems. SMEs in the manufacturing sector, also known as small and medium industries (SMIs) are the majority of business entities in Indonesia and are one of the most significant polluters. This study focused on several SMIs located within two villages (i.e. Padamukti and Cibodas) alongside the Citarik River, which is one of the Citarum River tributaries. The study aimed to identify the concept of circular economy application by SMIs in West Java Province consisting of an understanding of (1) the circular economy concept and (2) internal and external factors of the circular economy application. In this study, we applied the snowball technique, closed questionaries, strengths-weakness-opportunities-threats (SWOT), and quantitative strategic planning matrix (QSPM). There were 10 selected respondents, including 4 respondents who were waste generators, while 6 respondents were classified as waste beneficiaries. The study found that 100% of the involved respondents had never heard or understood the concept of the circular economy even though they had partially applied the 5R principles. By using SWOT, driving and barrier factors were identified. The reprocessed waste became a strength factor, while the lack of knowledge and expertise in waste management were two major weaknesses. Meanwhile, there was attention and encouragement from the government for SMIs that implement environmentally friendly businesses as an opportunity factor, and insufficient market availability or consumers are part of the external analysis. Sequentially, using QSPM we suggest that socialization of the circular economy concept needs to be carried out in the wider community as the priority strategy and policy recommendations, followed by policymaking and guidelines for effective circular economy implementation.