Implementing Circular Business Model Canvas for MSMEs in Indonesia

MSMEs in Indonesia have undergone notable expansion, resulting in enduring environmental harm. In response to this challenge, Indonesia has included the circular economy (CE) into the Indonesia 2045 agenda as a strategic approach to achieve development sustainability and promote the green economy. The circular business model canvas (CBMC) framework is a strategic approach towards achieving the goals of Advanced Indonesia 2045. Research on the CBMC framework remains limited, particularly in the context of MSMEs in Indonesia. Thus, the objective of this study is to propose a CBMC framework suitable for implementation across different SME sectors in Indonesia. The research finding introduce the CBMC framework created by Lewandowski, derived from the business model canvas (BMC) framework by Osterwalder and Pigneur. Lewandowski incorporated new elements, namely the take-back system and adoption factor, into the BMC model. As a result, the CBMC framework now consists of eleven components, with each component aligning with the principles of CE. Additionally, Lewandowski introduced three primary challenges known as the Triple Fit Challenge, which consist of ensuring (1) alignment of value propositions with customer segments, (2) alignment of cost structures with revenue streams, and (3) alignment of take-back systems with adoption factors. Overcoming these challenges is essential for the success of CBMC design.