This is Our Circular Economy Initiatives: What Worked, What Experts Would Do Differently

Indonesia continues to face pressing waste management challenges, evidenced by 35 landfill fires in 2023 and widespread landfill over-capacities, emphasizing the need for better management. In response to this, GoTo Impact Foundation (GIF)–a nonprofit established by the GoTo Group–launched the Catalyst Changemakers Ecosystem (CCE) 2.0 in 2023. The second cohort focuses on supporting changemakers to innovate together in solving waste management challenges in Bali, Labuan Bajo, and Lake Toba by adopting circular economy practices. By doing so, CCE 2.0 aims not only to tackle waste issues but also to prevent waste from ending up in landfills and create new income opportunities for local communities.

A year after being equipped with the courage, funding, and guidance to explore and implement new ways to solve problems, the Changemakers are now ready to share their insights and lessons learned. These learnings were shared through the “Innovation Dialogue: Circular Economy Learning in Tourism Destinations” event, held in conjunction with the celebration of National Waste Awareness Day (HPSN).

Summarized into one, this article delves into their innovations, key insights, and expert recommendations from the Danish Embassy, ERIA, SecondMuse Indonesia, INDECON, and fellow circular economy players.

Golo Mori, strategically positioned as a buffer village in one of the locations proposed to become Special Economic Zone (KEK) and bearing the meaningful name “Gunung Tuhan” (Mountain of God), continues to face significant challenges. These include low awareness and inadequate waste management systems, climate change and economic threats to food security, and the rapid growth of tourism that outpaced the infrastructure and resource readiness of the local communities. These interconnected challenges highlight the need for holistic and innovative solutions to ensure Golo Mori’s long-term development and resilience.

Responding to such challenges, Todo Cama integrated three sectors—waste management, agriculture, and disaster resilience—to transform Golo Mori into a financially sustainable tourism village supporting the KEK by adopting a circular economy. Their circular economy model operates on two levels:

• Macro: Linking waste management to organic farming, enhancing soil fertility, and promoting ecotourism.
• Micro: Recycling waste into sellable products, using organic waste compost for farming, and selling agricultural produce.

Progress after one year:

• Established a waste management system (institution, technical aspect, policy/regulation on progress, financial, local participation)
• Processed 6.6 tons of waste
• Trained 93 farmers in regenerative agriculture (+327% above target)
• Formed three community groups: Peduli Sampah Golo Mori, Laskar Tangguh Golo Mori, and Kelompok Wanita Tani to promote local ownership and project sustainability
• Secured 163 waste management customers (+63% above target)

This belief was reinforced over the course of their one-year project implementation. They ensured that every initiative was rooted in local context, needs, and potential, creating value that resonated with the community. This approach was reflected in several key outcomes:

• Waste was transformed into valuable products with marketable potential in the recycling sector.
• Agricultural outputs were developed into organic products, marketed to the HORECA (hotel, restaurant, and catering) sector, enhancing both local income and food security.
• Regenerative farming practices improved food resilience and reduced the risk of crop failure.
• The area evolved from a simple coastal and agricultural village into a thriving ecotourism destination centered around sustainable farming practices.

Additionally, the consortium emphasized the importance of building disaster resilience to support long-term value creation. They achieved this through disaster risk mapping in intervention areas, capacity building in disaster-prone locations, and infrastructure development for disaster risk identification.

However, the sustainability of the initiative faces potential constraints in three key areas: market demand, community involvement, and financial sustainability. These challenges were highlighted through feedback from experts and fellow participants, underscoring the need for adjustments to ensure long-term sustainability.

Market Demand

Ary Suhandi, Executive Director of Indecon, noted that situations like Golo Mori are common across Indonesia, presenting an opportunity for Todo Cama to create a broader impact. However, he emphasized the importance of aligning initiatives with market demand. Responding to Ary’s input, the consortium shared that while the tourism market in Golo Mori is still developing, the agriculture sector has shown promise. Local sourcing requirements mandate that 50-60% of products be locally sourced, and have created a steady demand for regenerative agricultural outputs. Other than that, it is noteworthy to carefully identify market demand in developing further strategy and innovation.

Community Involvement

With only one organization in the consortium—Kole Project—based in Golo Mori, the team quickly realized the need to collaborate closely with existing communities. The challenge lay in persuading locals to adopt unfamiliar innovations, as circular economy practices were previously nonexistent in the area. This challenge is quite common, as one participant from Freshmind, Hikmah Amalia, also faced the same situation. The discussion was able to narrow down several strategies that the consortium did that can potentially be replicated elsewhere:

• Educating the community in their traditional language and using easy-to-understand terms.
• Working closely with local champions to build trust and credibility.
• Conducting door-to-door education and focus group discussions (FGDs)
• Reside in the community’s house to foster deeper engagement.

Financial Sustainability

To create a sustainable ecosystem, the consortium established community-based institutions—Peduli Sampah Golo Mori, Laskar Tangguh Golo Mori, and Kelompok Wanita Tani. These institutions strengthened local commitment and laid the groundwork for future financial collaboration, such as profit-sharing models with the consortium. This strategy is also agreed by Ary, who highlighted the importance of building systems for long-term sustainability.

Additionally, the consortium focused on influencing village-level policies to ensure financial sustainability. Agung, a consortium representative, explained, “For waste management, we are advocating for village regulations that include community retribution.” This approach was echoed by Salim, a participant from Asia Pacific Alliance for Disaster Management (A-PAD) Indonesia, who questioned whether village government budgets could be leveraged to support such projects. While the consortium has yet to secure a specific budget, they have advocated for it and are awaiting a final decision. As an expert in sustainable tourism, Ary suggested creating a public declaration signed by the village to formalize commitments and amplify accountability by the local community.

Waste and food loss are two of the most pressing issues in the area around Lake Toba, which was exacerbated by the rapid growth of tourism. The Samosir Mallatam consortium is tackling those challenges at once while providing economic benefits to the local communities.

As the consortium ran this initiative together with the local community, the consortium soon realized differences in work pace, understanding, and sense of urgency. To address these, they identified things that needed iteration together with the locals and collaborated with stakeholders beyond local champions.

As Ricardo Simanjorang, a representative of the Samosir Mallatam consortium, reflected:

The silver lining of their refinement process lies in investing in people—empowering human resources as the driving force behind all changes. Through constant guidance and training, the consortium achieved:

• Support from the Village Government and BUMDES (Village-Owned Enterprises) for workforce assistance, with a total of 9 green jobs created from the initiatives.
• Resources to develop innovations within the ecotourism pillar.
• Collected 2,758 kg of waste and managed 85% of waste.
• Product diversification based on local input and market expansion through food catering.
• Saved 442 kg of local food that otherwise would end up in a landfill
• Advocacy for waste management policies with the Village Government.

While significant progress has been achieved, some aspects of the innovation still require further refinement and expert input. Key areas for improvement include the decision to adopt pyrolysis and the development of a robust exit strategy

Intervention Model

While the waste management efforts still heavily rely on TPS3R, Dody Iswandi Maulidiawan, Environment Advisor for the Danish Embassy, raised critical questions for the consortium to consider when designing their innovations. One key suggestion was exploring a monthly waste bank system for recycling, given the assumption that the scale from Samosir Regency is considered to be small. However, the concept of the waste bank is not feasible for remote locations, such as Samosir Regency, and the fact that plastic waste still accounts for a low market value. Instead, they opted for pyrolysis to convert plastic waste into fuel.

Dody also highlighted the complexities and debate surrounding pyrolysis, both from a technical and environmental perspective. Additionally, the economic potential of pyrolysis is limited by regulatory barriers, preventing the sale or commercialization of its byproducts.

Exit Strategy

On the topic of exit strategies, Aulia Salsabella and Celine Kusnadi, Research Associates from ERIA, provided valuable insights on 6 Levers of Behavioral Change, which are crucial for mapping out a sustainable exit plan. Their recommendations include:

• Emotional appeal: Assessing whether the community is genuinely interested in the intervention.
• Social influence: Leveraging local leaders and cultural figures to drive adoption.
• Choice architecture: Offering clear options, such as reusable vs. single-use plastics.
• Information: Identify their behaviors and motivation to make improvements through informed decisions.
• Material incentives: Using financial rewards, as seen in the waste bank model, to encourage participation.
• Rules and regulations: Establishing village-level policies to formalize commitments and ensure compliance.

Bali, home to the biggest pura complex called Besakih, faced significant waste management challenges. Beyond the issue of waste accumulation, the region dealt with potential risks of landfill fire, flooding, and ocean leakage, all of which posed serious threats to community health and wellbeing. To address these challenges, Consortium Sukla was formed to optimize waste management through both conventional and non-conventional methods.

Progress after one year:

• 2,012 households were educated on proper waste management.
• 5 community meetings (sangkep) were conducted to foster collaboration.
• Creation of the Wastetrip Tourism Package, integrating waste management into tourism.
• Production of 5,392 compost rosters.
• 16,630 kg of waste were managed effectively.
• 1,947 kg of recycled products were generated through the waste bank.
• 18 green jobs were created, supporting local livelihoods.
  

The success of Sukla’s initiatives was rooted in addressing five key aspects of waste management: policy, funding, technology, institutional frameworks, and socio-cultural factors. However, challenges remain, particularly in making green jobs a primary source of income for locals, which is essential for the circular economy to thrive.

Despite efforts to create green jobs, many locals remain hesitant to fully engage, as these roles are not yet seen as stable or lucrative. This challenge is compounded by broader systemic issues, such as weak policy enforcement and the complex licensing processes required.

Waste Management

Before Sukla’s intervention, the community lacked guidance in establishing an effective waste management system, both institutionally and technically. Sukla stepped in by working alongside government officials, local communities, and providing door-to-door education to 2,012 households on proper waste management.

The decision to adopt a door-to-door approach was driven by the community’s previously passive attitude toward waste management. This strategy ensures education and engagement are given to all related stakeholders, regardless of their stance on waste management.

However, shifting deeply ingrained behaviors proved challenging. Even with extensive education, the community required adequate facilities to support their newfound knowledge, such as the availability of segregated waste bins.

Policy Enforcement

In a culturally rich area like Bali, two laws apply: customary law and formal law, specifically Customary Village Regulation No. 3 of 2021 and Village Regulation No. 4 of 2023 on waste management. Yet, enforcement remained weak due to a lack of urgency in optimal law implementation and limited community buy-in.

In a discussion with Riza Aryani, Research Practice Director at SecondMuse Indonesia, the consortium highlighted that customary law often carries more weight than formal regulations. Despite this, efforts are made to enforce both laws, as each addresses critical aspects of waste management. Yet, enforcement remains weak due to a lack of urgency in optimal law implementation and limited community buy-in.

To address these challenges, the consortium focused on reviving the local waste bank, a key component of the waste management policies. So far, the waste bank has conducted four training sessions, engaging 82 participants, including locals and small business owners (such as warung owners).

Sukla leveraged innovative technology to produce Refuse-Derived Fuel (RDF), create green products, and develop agricultural compost, transforming waste into valuable resources while addressing operational cost challenges and ensuring the circular economy ran effectively.

Before Sukla’s intervention, it was difficult to process a large volume of waste generated with the limited technology of simple waste sorting conveyor machines. Responding to that, Sukla introduced unconventional waste sorting equipment, which has produced 5,864 kg of Refuse-Derived Fuel (RDF) and 808 kg of multilayer waste products. However, despite training and mentorship, the community’s ability to operate this technology remains limited.

On green product creation, this initiative not only addresses waste management but also plays a crucial role in creating green jobs for locals. These jobs empower community members while the product sales help to cover operational costs, reducing reliance on community retribution fees, which can take time to implement fully.

For organic waste management, the consortium focused on transforming it into agricultural compost. While the idea of converting organic waste into compost holds great promise, scaling this initiative faces challenges. Mass marketing requires licensing, a process that is both complex and time-consuming. For now, the compost is distributed to local farmers.

During discussions, Ali Akbar from Desa Wisata Guranjhil, West Sumatra, expressed interest in this innovation. The consortium explained that beyond the difficulty of obtaining permits, compost production is also constrained by the availability of organic waste, adding another layer of complexity to its sustainability.

Understanding that these consortiums still have a long journey ahead to achieve sustainability, they face one of the toughest challenges of all: breaking free from pilot paralysis. In an article by GoTo Impact Lab, five key lessons from successful startup ecosystems were highlighted for sustainable social innovation:

1. Resourceful Mindset: Innovation doesn’t always require substantial funding. A resourceful mindset—leveraging available assets and networks—can drive significant impact.
2. Willingness to Experiment: Experimentation is crucial for refining ideas and achieving relevance. While short-term grants may pressure organizations to avoid failure, embracing trials and errors can lead to groundbreaking solutions.
3. Aligning Problem-Solving Across Functions: Innovation shouldn’t be confined to one department. Every function—HR, finance, partnerships—must adopt a problem-solving mindset to ensure cohesive and sustainable operations.
4. “Think Big” from the Start: Scalability should be a core focus from the beginning. Instead of designing “ideal” pilot projects, organizations should co-create solutions with local actors to ensure feasibility and adaptability during scaling.
5. Utilize a For-Profit Mindset: Non-profits can adopt entrepreneurial principles to sustain their missions.

At the very core of these lessons is a shift in priority to a more systemic approach. This shift encourages changemakers to view resources more broadly, take a holistic approach to problem-solving, and recognize the interconnectedness of issues, places, and people. It also fosters a culture of experimentation, as changemakers begin to see the need to explore new and better ways to address issues given the interconnectedness.

As these valuable insights, gathered from a year of implementation and expert feedback, are put into action, it’s time for all of us–educators, policymakers, funders, businesses, NGOs, and communities—to step up. The journey toward sustainability is not just for a few; it’s a collective movement.

Let’s not stand on the sidelines. Let’s challenge practices, push boundaries, and transform these insights into real, sustainable impact.

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