International Journal of Business and Quality Research
Vol. 4 No. 02 (2026): International Journal of Business and Quality Research (IJBQR)

Analyzing the Economic Feasibility of Circular Economy Practices in Natural Resource Utilization

Syamsu Rijal (Department of Economics and Business,Universitas Negeri Makassar)
Muhammad Nur Afiat (Department of Economics and Business Universitas Halu Oleo)
Mustari (Prodi Pendidikan Ekonomi Universitas Negeri Makassar.)



Article Info

Publish Date
24 May 2026

Abstract

The transition from a linear, extractive economy to a circular economy is crucial for Indonesia, a resource-rich country, in maintaining long-term economic resilience. This study aims to analyze the economic feasibility of circular economy practices in natural resource utilization in Indonesia using a longitudinal approach over a decade (2014–2024). The methodology used is descriptive quantitative with Net Present Value (NPV) analysis, Internal Rate of Return (IRR), and the integration of Green Accounting to monetize environmental externalities. The results show that circular economy projects in the downstream mineral and plantation sectors reach break-even on average within 4.5-6 years, with an increase in operational efficiency of 18–25% through waste reduction and raw material substitution. The novelty of this study lies in the use of 10-year time-series data, which validates that circularity significantly reduces the company's financial risk profile to global commodity price volatility. The implications of this study emphasize the need to standardize secondary material prices and to implement more aggressive fiscal incentives to accelerate the national green economy transformation.

Copyrights © 2026






Journal Info

Abbrev

IJBQR

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Business,and Quality research (IJBQR) is a high quality open access peer reviewed research journal. providing a platform for the researchers, academicians, professional, practitioners and students to impart and share knowledge in the form of high quality empirical and ...