Embracing Circular Economy Principles: How Indonesian MSMEs Food Services Drive Sustainability Through Local Sourcing
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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
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asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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Published: 03 June 2024

Embracing Circular Economy Principles: How Indonesian MSMEs Food Services Drive Sustainability Through Local Sourcing

Dea Mutiarani Rahmawati, Santi Novani

Bandung Institute of Technology, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.07.02.584

Pages: 176-188

Keywords: Circular Economy, Food-Service Sector, Sustainability Practices, Environmental Impact, Indonesian MSMEs

Abstract

This study investigates how Indonesian micro, small, and medium-sized enterprises (MSMEs) food service, specifically two bakeries and restaurants, are embracing circular economy principles to become more sustainable and meet consumer demands. By conducting semi-structured interviews with co-founders and operational managers, it uncovers that sourcing locally is a pivotal strategy for these businesses, driven by the need for supply chain efficiency, environmental and social benefits, and partnerships with local farmers. These practices allow for the provision of local and wholesome menu items, sustainable packaging, and collaborative social responsibility efforts with suppliers. Despite facing challenges like supplier standardization, quality control, and educating employees on waste sorting, the benefits of adopting circular economy practices are clear. Key to success are stakeholder cooperation, effective waste management, and pollution prevention. The findings enrich our understanding of circular economy adoption in the food service sector and offer insights for businesses aiming to boost their sustainability.

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