Start-ups as The Driver of Circular Economy: The Case of Indonesia

Abstract: This study illuminates the pivotal role of start-ups in driving circular economy (CE) implementation in Indonesia. Using the Multi-Level Perspective (MLP) framework, this research explores the dynamic contributions of start-ups in fostering sustainable transitions from a linear to a circular economy. The qualitative data collection involved document review and semi-structured interviews, revealing key enablers such as market forces, multi-stakeholder partnerships, social media utilization, continuous innovation, and technological advancement that have leveraged the development of CE start-ups. However, these niche innovators face regime-level challenges, including low awareness and limited knowledge, regulatory constraints, and financial hurdles. Despite these obstacles, start-ups significantly influence environmental, economic, and social dimensions, thus facilitating broader societal shifts. This research highlights the instrumental role of Indonesian start-ups in driving the transition to a more sustainable and circular economy.