BOGOR – The circular economy is considered a strategic approach to reforming sustainable development policies in Indonesia. Unlike the linear "take-use-dispose" model, this concept emphasizes closed cycles in production and consumption, with a focus on waste reduction, increasing natural resource efficiency, and creating new economic value from residues.
Prof. Eka Intan Kumala Putri, Professor of Environmental Economics at the Faculty of Economics and Management at the Bogor Agricultural University (IPB), stated that the transformation towards a circular economy requires a shift in policy paradigm, from a sectoral to a systemic, cross-sectoral approach. This approach, she argued, must integrate economic, environmental, and governance aspects.
"In the Indonesian context, the implementation of a circular economy is highly relevant in a number of strategic sectors, such as urban waste management, agriculture-food, plantations, and energy," said Prof. Eka in her inaugural speech at IPB on Thursday, August 14.
She explained that in the agriculture and food sector, optimizing biomass and residues can be processed into compost, animal feed, or bioenergy through a zero-waste farming system. Meanwhile, in the plantation sector, a circular economy can encourage the standardization of residue-based secondary products and innovation in waste downstream processing.
"In the energy sector, biomass waste, organic waste, and even sludge from wastewater treatment plants (WWTPs) have the potential to become fuel sources," he added.
Prof. Eka emphasized that with cross-sector integration, circular economy policies will strengthen environmental legitimacy as a force for development, not just an ecological response. This, he continued, will encourage the convergence of natural resource efficiency and industrial transformation towards an inclusive and competitive green economy.
He also provided five policy recommendations to accelerate the circular economy transformation in Indonesia:
Circularity-based regulations and incentives – Create a legal framework that supports recycling practices, environmentally friendly product standards, and fiscal incentives such as tax breaks and green financing for businesses.
Integration in national and regional development planning – Mainstream the circular economy in planning documents such as the National Medium-Term Development Plan (RPJMN) and regional Work Plans (RKP), in accordance with laws related to energy, waste management, and environmental protection.
Strengthening the innovation and technology ecosystem – Supporting research, biomaterial development, supply chain digitalization, and the establishment of regional-based circular innovation centers.
Circular education and literacy – Incorporating circular economy materials into formal and non-formal curricula, including training programs.
Multi-stakeholder collaboration and participatory governance – Encouraging synergy between government, academia, businesses, and communities within a transparent collaborative platform.
“The implementation of a circular economy not only makes waste management more effective but also ensures the environment remains a strategic resource for sustainable national development,” concluded Prof. Eka.
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