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

Dea Mutiarani Rahmawati, Santi Novani

Bandung Institute of Technology, Indonesia




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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