Economy Circular Adoption toward Sustainable Business (Study case: Agro-industry Company in Indonesia)

Agro-industry is one of the industrial sectors that is considered important to adopt the Circular Economy (CE) principles due its close relation with agriculture and food system, as well as its significant contribution to the transition of a low-carbon economy. The CE focus on resource efficiency and waste reduction could preserve the use of natural resources like soil, water, and energy while also reducing the dependency of agro-industry on them, and protect the environment. Although the CE approach can bring long-term benefits, the agro-industry faces many challenges and obstacles to overcoming the complexity of integrating business processes, supply chains, and collaboration between stakeholders to align with the corporation’s business strategy for implementing CE. The purpose of this study is to analyze CE adoption in the agro-industry by exploring the business process circularity that is being carried out to achieve sustainable business. The results of this study show that CE adoption in the agro-industry is being carried out through the innovation of connecting various production process systems, creating added value, and searching for new business opportunities by focusing on handling agro-waste and valorizing by-products. The study revealed wider insights regarding CE adoption in agro-industry corporate strategies as a transformative business model innovation towards sustainable development.