Reimagining Resource Use:

The Circular Economy in Emerging Economies

Ganes Dzikri Pepundi Santosa

2006490245

Circular Economy for Business and Supply Chain

Reimagining Resource Use: The Circular Economy in Emerging Economies

The traditional "take-make-dispose" economic model is reaching its limit, straining

planetary resources and exacerbating environmental damage. This is particularly
concerning for developing countries, like Indonesia, which face rapid economic growth
coupled with resource scarcity and pollution challenges. Enter the circular economy, a
promising framework that aims to close the loop, keeping resources in use for as long as
possible through practices like reuse, repair, and remanufacturing. While the potential of
the circular economy is widely recognized, translating it into concrete solutions for
developing countries such as Indonesia requires specific considerations.

This resume will explore the key points from two relevant papers and "Investigation of
circular economy practices in the context of emerging economies: a CoCoSo approach"
by Kaur and Singh (2020) and "A Global Redesign? Shaping the Circular Economy" by
Preston (2012), and the SAFE Forum 2020: The Circular Economy: An Opportunity as
well as other relevant readings, to examine how circular principles can address
challenges and foster sustainable development in developing countries, focusing on the
Indonesian context.

In the book Cities for a Small Planet, Richard Rogers emphasized That the essence of
achieving sustainability and a circular economy lies squarely within economics,
necessitating a critical examination of the fundamental assumptions that underlie our
economic principles. Since the era of industrialization, the focus has predominantly
been on the extraction and consumption of resources.

This historical trajectory, spanning over two centuries, has given birth to highly
efficient methodologies and technologies geared towards a pattern of linear
consumption and waste generation. The prioritization of GNP and GDP implies that this
type of linear economy based economic expansion in itself has certain advantages, yet it
overlooks the basic considerations of environmental sustainability and societal well-
being. By advocating for a paradigm shift towards resource conservation and recycling,
we can foresee the market eventually responding with comparable fervor and
effectiveness especially in developing countries.
Kaur and Singh's study, using the CoCoSo decision-making framework, identifies five
crucial circular economy practices for emerging economies which are especially
relevant to the Indonesian development:

1. Consumer awareness: Educating consumers about responsible consumption

and waste management is vital for shifting behavior towards circular practices.
2. Legislation and policies: Government regulations and incentives can create an
enabling environment for circular businesses and infrastructure.
3. Developing a circular culture: Promoting circular values and behaviors within
society encourages long-term sustainability and innovation.
4. Supply chain awareness: Raising awareness among all stakeholders within the
production and distribution chain fosters collaboration and circular design.
5. Designing products for circularity: Creating products that are easily
reused, repaired, and remanufactured minimizes waste and extends their
lifespan.

Preston's "Global Redesign" paper emphasizes the systemic transformation needed for a
successful transition to a circular economy. This includes collaboration between
businesses, governments, and consumers, with each taking responsibility for their role
in resource use. Developing countries can adapt these principles to their specific
circumstances. This also aligns with the ideas exposed by Fraser Thompson, Co-
Founder and Director, Alphabeta in Singapore in the SAFE Forum 2020: The Circular
Economy: An Opportunity of how the aforementioned points are also one of
Indonesia’s biggest potential.

In Indonesia, where resource security and waste management are major concerns, the
circular economy offers a path towards a more sustainable future. For instance,
promoting consumer awareness through education campaigns and eco-labeling can
encourage responsible consumption habits. The government can introduce policies
incentivizing product take-back programs and extended producer responsibility, while
developing green infrastructure for waste collection and recycling. Fostering innovation
in local businesses to design for circularity, such as modular products and repair
services, can create new jobs and reduce waste generation.
Challenges remain, however. Informal waste collection systems prevalent in Indonesia
might need integration into formal recycling chains. Consumer affordability and access
to circular products must be addressed. Infrastructure development and skills training
are crucial for supporting circular business models. Addressing these challenges
requires active collaboration between stakeholders, leveraging international expertise
and financial resources while ensuring policy solutions fit the Indonesian context.

In conclusion, the circular economy presents a unique opportunity for developing

countries like Indonesia to achieve sustainable development. By prioritizing key
practices like consumer awareness, supportive policies, and circular design, coupled
with systemic changes and stakeholder collaboration, Indonesia can transform its
resource use and navigate towards a more prosperous and environmentally responsible
future. The insights from the discussed papers provide valuable guidance on this path,
reminding us that a "global redesign" requires tailored solutions specific to each nation's
context and needs. Embracing the circular economy is not just an environmental
imperative, but also an opportunity for developing countries to leapfrog outdated
technologies, create new jobs, and secure their resource future.
References

Kaur, R., & Singh, J. (2020). Investigation of circular economy practices in the context
of emerging economies: a CoCoSo approach. Journal of Cleaner Production, 278,
124099.

Preston, F. (2012). A Global Redesign? Shaping the Circular Economy. Chatham

House.

Rogers, R. (1995). Cities for a Small Planet. London: Thames and Hudson.

SAFE Forum 2020: The Circular Economy: An Opportunity [Video]. YouTube.

Retrieved February 17, 2024, from https://www.youtube.com/watch?v=lwwTPrqsQTE