Advancing sustainable rural development through circular economy practices: Evidence from SMEs in Central Java, Indonesia

Istiqomah; Lilis Siti Badriah; Chairani Fadhila Pravitasari

doi:10.29333/ejosdr/17919

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Istiqomah ¹ ^* , Lilis Siti Badriah ¹ , Chairani Fadhila Pravitasari ¹

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¹ Universitas Jenderal Soedirman, Jawa Tengah, INDONESIA^* Corresponding Author

Abstract

The circular economy (CE) has been widely promoted as a strategy for sustainable development, yet evidence of its implementation among rural small and medium enterprises in developing countries remains limited. This study aims to examine how rural enterprises in Banyumas District, Central Java, Indonesia, adopt CE practices and to identify the challenges and opportunities associated with these practices. Data were collected through focus group discussions, semi-structured interviews and field observations involving 20 participants from various rural enterprises. The data were analyzed using thematic analysis to generate insights into innovative practices. The findings reveal that innovative practices include the use of organic materials, renewable energy generation, and the utilization of industrial by-products. However, significant challenges persist, including a shortage of natural dye raw materials, unstable color quality, high production costs, low local market demand, and limited technical maintenance in biogas facilities. Education, training, and cross-sector collaboration emerge as essential enablers for advancing CE practices in rural SMEs.

Keywords

circular economy
green economy
rural SMEs
sustainability
challenges
opportunities

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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

EUR J SUSTAIN DEV RES, Volume 10, Issue 2, 2026, Article No: em0375

https://doi.org/10.29333/ejosdr/17919

Publication date: 01 Apr 2026

Online publication date: 15 Feb 2026

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APA

Istiqomah, Badriah, L. S., & Pravitasari, C. F. (2026). Advancing sustainable rural development through circular economy practices: Evidence from SMEs in Central Java, Indonesia. European Journal of Sustainable Development Research, 10(2), em0375. https://doi.org/10.29333/ejosdr/17919

Vancouver

Istiqomah, Badriah LS, Pravitasari CF. Advancing sustainable rural development through circular economy practices: Evidence from SMEs in Central Java, Indonesia. EUR J SUSTAIN DEV RES. 2026;10(2):em0375. https://doi.org/10.29333/ejosdr/17919

AMA

Istiqomah, Badriah LS, Pravitasari CF. Advancing sustainable rural development through circular economy practices: Evidence from SMEs in Central Java, Indonesia. EUR J SUSTAIN DEV RES. 2026;10(2), em0375. https://doi.org/10.29333/ejosdr/17919

Chicago

Istiqomah, Lilis Siti Badriah, and Chairani Fadhila Pravitasari. "Advancing sustainable rural development through circular economy practices: Evidence from SMEs in Central Java, Indonesia". European Journal of Sustainable Development Research 2026 10 no. 2 (2026): em0375. https://doi.org/10.29333/ejosdr/17919

Harvard

Istiqomah, Badriah, L. S., and Pravitasari, C. F. (2026). Advancing sustainable rural development through circular economy practices: Evidence from SMEs in Central Java, Indonesia. European Journal of Sustainable Development Research, 10(2), em0375. https://doi.org/10.29333/ejosdr/17919

MLA

Istiqomah et al. "Advancing sustainable rural development through circular economy practices: Evidence from SMEs in Central Java, Indonesia". European Journal of Sustainable Development Research, vol. 10, no. 2, 2026, em0375. https://doi.org/10.29333/ejosdr/17919