Application of circular economy in manufacturing industry in Indonesia

Abstract

Circular economy is an economic activity that emphasizes the use of resources aimed at reducing emissions and energy released. The benefits of implementing a circular economy are absorbing labour, reducing waste, reducing pollution, and preserving nature. The circular economy system is the opposite of the conventional economic system. The conventional economic system only exploits nature to produce goods for use and after that is discarded. The five activities that are at the core of the circular economy concept are reduce, reuse, recycle, recover, and revalue. Circular economy will generate benefits from both economic, social and environmental aspects. From an economic perspective, this concept will use waste products from previous production processes or other economic actors to end waste treatment globally. From a social aspect, this concept can create new job opportunities, encourage community participation, and use collective goods and services more efficiently than individually. From an environmental aspect, by utilizing waste from product sharing, it will reduce the environmental burden from the exploitation of raw materials and pollution. The circular economy system will create benefits not only making the environment healthier but also having a positive impact on the economy, absorbing labour and creating long-term economic resilience.