New Tool for Circular Economy Measurement of Industrial Symbiosis in Manufacturing Industrial Estates

Implementing Circular Economy (CE) aims to overcome global environmental problems by re-using, remanufacturing, and recycling resources, waste, emissions, and energy to obtain economic benefits. CE has been implemented in various countries at various levels, from macro to micro. However, the literature related to measuring CE implementation is more at the macro and micro levels than at the meso level. In fact, the implementation of CE at the meso level has great potential with the synergy of economic activities in the manufacturing sector, which provides many benefits. This study designed a new tool for measuring CE in IEs, building upon and enhancing existing tools. A case study was conducted by applying the new tool to measure CE in an IE in West Java, Indonesia. Initially, a comprehensive literature review was carried out to identify existing CE measures at the meso level. Following this, this process of CE measurement in industrial symbiosis was mathematically modeled using a series of inputs and processes within an IE's industrial symbiosis (IS). Then, a benefit-cost ratio (BCR) analysis was utilized to compare the benefits and costs of CE implementation. The results showed that the company in the last sequence of IS in the IE had the highest BCR value (1.528), reflecting 12.44% increase as the result of the symbiotic multiplier effect. The BCR value of a stand-alone company was lower than that of a company participating in IS.