From Waste to Wealth: A Model of Circular Entrepreneurship through Community-Based Zero Waste Practices in Rural Indonesia
a. Siti Shoimah b. Ahmad Sholikin c. Umar Subhan Basri

a Department of Management, Faculty of Economics, Universitas Islam Darul ^Ulum
b Department of Political Science, Faculty of Social and Political Science,
Universitas Islam Darul ^Ulum
c TPS 3R Desa Rejoagung, Jombang

Email:
a. sitishoimah[at]unisda.ac.id
b. ahmad.sholikin[at]unisda.ac.id

Abstract

Purposes: This study investigates a pioneering community-driven zero waste initiative in Desa Rejoagung, Indonesia, implemented through TPS 3R Desa Rejoagung-a business unit under the village-owned enterprise (Badan Usaha Milik Desa/BUMDes Rejoagung). Supported by the Jombang Environmental Agency (DLH), the program integrates Reduce, Reuse, and Recycle (3R) principles with income-generating activities such as fee-based waste collection for households and external clients, maggot farming for catfish feed, compost production, and inorganic waste management via partnerships with the Main Jombang Waste Bank and ecobrick production.
Methods: The study applies a Community-Based Participatory Research (CBPR) approach, emphasizing collaboration between researchers and community stakeholders. Data collection was carried out through participatory observation, co-learning processes, in-depth interviews, and document analysis. Thematic analysis was used to identify innovation pathways, shared values, and systemic challenges in the implementation of circular entrepreneurship at the village level.
Results: The TPS 3R Desa Rejoagung model demonstrates a replicable framework for rural sustainability. The initiative generates IDR 20 million in monthly revenue, creates 15 local jobs, and reinvests profits into community development. By diversifying waste management practices-such as organic waste processing, ecobrick creation, and sales of recyclables to the waste bank-the program significantly reduces landfill dependency. Its success is driven by participatory governance, cultural alignment, and multi-stakeholder institutional support.
Conclusion and suggestion: This study highlights the strategic potential of BUMDes-led circular entrepreneurship in transforming rural waste management into a sustainable economic enterprise. To scale its impact, partnerships with the private sector, NGOs, and academia are essential to expand access to markets, technology, and funding. Future research

Keywords: Circular Entrepreneurship, Community-Based Waste Management, Rural Sustainability, Village-Owned Enterprises (BUMDes), Zero Waste Practices.

Topic: Entrepreneurship and small medium entreprises