Economic Annals-XXI: Volume 210, Issue (7-8), Pages: 24-29

Citation information
Latifah, L., Salim, L. A., Ritonga, I., & Huda, F. (2024). Circular economy model based on places of worship in Indonesia. Economic Annals-XXI, 210(7-8), 24-29. doi: https://doi.org/10.21003/ea.V210-04


Luluk Latifah
PhD (Economics),
Faculty of Postgraduate Students,
Muhammadiyah University Surabaya
Jl. Raya Sutorejo No. 59, Surabaya, Jawa Timur, 60113, Indonesia
luluklatifah@um-surabaya.ac.id
ORCID ID: https://orcid.org/0000-0002-6261-7909

Lutfi Agus Salim
PhD (Demography),
Faculty of Biostatistics and Population,
Airlangga University
Mulyorejo, Kec. Mulyorejo, Surabaya, Jawa Timur, 60115, Indonesia
lutfi.as@fkm.unair.ac.id
ORCID ID: https://orcid.org/0000-0002-4745-614X

Iskandar Ritonga
PhD (Sharia Economics),
Faculty of Sharia Economics,
Sunan Ampel Surabaya University
Jl. Ahmad Yani No.117, Jemur Wonosari, Kec. Wonocolo, Surabaya, Jawa Timur, 60237, Indonesia
ritonga@uinsa.ac.id
ORCID ID: https://orcid.org/0009-0002-4610-8677

Fatkur Huda
MA (Economics),
Faculty of Postgraduate Students,
Muhammadiyah University Surabaya
Jl. Raya Sutorejo No. 59, Surabaya, Jawa Timur, 60113, Indonesia
fatkurhuda@um-surabaya.ac.id
ORCID ID: https://orcid.org/0000-0003-3732-3981

Circular economy model based on places of worship in Indonesia

Abstract. The circular economy is an alternative to the traditional linear economy which consists of make, use, dispose, and continues to generate waste and exploit the use of natural resources. The place of worship in the midst of the community can be a role model as a center of worship and also as a center for the formation of a sustainable circular economy. Places of worship and their adherents as actors or subjects who will pioneer and imply these circular economy activities.

The purpose of this second phase of research is to form a model for the implementation of a circular economy for communities based on places of worship. The research method carried out in this second stage is by quantitative method with PLS-SEM and data analysis using Smart-PLS 4.0.

The results of the research obtained are for the circular economy model using the GoF Value formula, the value is 0.509, this value has a large or strong criterion. This means that the circular economy model in places of worship formed in this study has a high ability to explain empirical data, hence, overall, it can be said that the model formed is valid. There are six indicators out of nine of the circular economy in the places of worship, namely: 1) refuse; 2) rethink; 3) reuse; 4) repair; 5) refurbish and 6) recycle.

This study recommends that places of worship also can be models for developing the circular economy.

Keywords: Economics; Circular Economy; Place; Worship; Model; Indonesia

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: This research was supported by the RIIM LPDP Grant and BRIN, grant number 107/IV/KS/11/2022. We also thanks to the LPPM Universitas Muhammadiyah Surabaya, Universitas Airlangga (UNAIR) and Universitas Islam Negeri Sunan Ampel Surabaya (UINSA).

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V210-04

References

  1. Abed, I., Ganiyevich, A., Zafar qizi, O., Yuldoshevna, S., & Hussein, L. (2024). The role of artificial intelligence in the development of english language teaching and learning. Procedia Environmental Science, Engineering and Management 11(1), 45-52. https://www.procedia-esem.eu/pdf/issues/2024/no1/6_Abed_24.pdf
  2. de Aquino, A. C. T., Gonçalves, M. F. S., & Mol, M. P. G. (2024). Healthcare waste and circular economy principles: It is time to improve! Waste Management & Research, 42(10), 857-859. https://doi.org/10.1177/0734242X241270979
  3. Awan, U., & Sroufe, R. (2022). Sustainability in the Circular Economy: Insights and Dynamics of Designing Circular Business Models. Applied Sciences, 12(3), 1521. https://doi.org/10.3390/app12031521
  4. Bavuso, I., Furlan, G., Intagliata, E. E., & Steding, J. (2023). Circular Economy in the Roman Period and the Early Middle Ages – Methods of Analysis for a Future Agenda. Open Archaeology, 9(1). https://www.semanticscholar.org/paper/Circular-Economy-in-the-Roman-Period-and-the-Early-Bavuso-Furlan/01e81671eb5fb52af70a4a196f9dfbf7f2d1d1e8
  5. Budhiasa, S. (2016). Analisis Statistik Multivariate dengan Aplikasi SEM PLS SMARTPLS 3.2.6. Udayana University Press.
  6. Catalano, G., D’Adamo, I., Gastaldi, M., Nizami, A.-S., & Ribichini, M. (2024). Incentive policies in biomethane production toward circular economy. Renewable and Sustainable Energy Reviews, 202, 114710. https://doi.org/10.1016/j.rser.2024.114710
  7. Feng, X., & Goli, A. (2023). Enhancing Business Performance through Circular Economy: A Comprehensive Mathematical Model and Statistical Analysis. Sustainability, 15(16), 12631. https://doi.org/10.3390/su151612631
  8. Hair, J. F., Black, W. C., Babin, B. y J., & Anderson, R. E. (2019). Multivariate Data Analysis (Eighth Edition). Cengage Learning EMEA. https://eli.johogo.com/Class/CCU/SEM/_Multivariate%20Data%20Analysis_Hair.pdf
  9. Hassan, A., Yang, J., Usman, A., Bilal, A., & Ullah, S. (2023). Green growth as a determinant of ecological footprint: Do ICT diffusion, environmental innovation, and natural resources matter? PLoS ONE, 18(9), e0287715. https://doi.org/10.1371/journal.pone.0287715
  10. Houssam, N., Ibrahiem, D. M., Sucharita, S., El-Aasar, K. M., Esily, R. R., & Sethi, N. (2023). Assessing the role of green economy on sustainable development in developing countries. Heliyon, 9(6), e17306. https://doi.org/10.1016/j.heliyon.2023.e17306
  11. Htet, A., Liana, S. R., Aung, Th., Bhaumik, A., & Giri, O. P. (2025). From waste to wealth: circular economy approaches in facade engineering. Journal of Engineering, Management and Information Technology, 3(1), 29-38. https://doi.org/10.61552/JEMIT.2025.01.004
  12. Fassott, G., Henseler, J., & Coelho, P. S. (2016). Testing moderating effects in PLS path models with composite variables For Authors Guest editorial. Industrial Management & Data Systems, 116(9), 1887-1900. https://doi.org/10.1108/IMDS-06-2016-0248
  13. Muñoz-Grillo, E. G., Sablón-Cossío, N., Ruiz-Cedeño, Ruiz-Cedeño, S. del M., Acevedo-Urquiaga, A. J., Verduga-Alcívar, D. A., Marrero-Gonzáleze, D., & Diéguez-Santanaf, K. (2024). Application of neural networks in the prediction of the circular economy level in agri-food chains. International Journal of Industrial Engineering and Management, 15(1), 45-58. https://doi.org/10.24867/IJIEM-2024-1-347
  14. KemenLHK. (2021). Berita Negara Republik Indonesia. Regulation of the Minister of Health of the Republic of Indonesia, 752(879). https://peraturan.bpk.go.id/Download/285310/Permen%20LHK%20Nomor%2014%20Tahun%202021-.pdf
  15. Kock, N., & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations. Journal of the Association for Information Systems, 13(7), 67-79. https://doi.org/10.17705/1jais.00302
  16. Kumar, Sh., Dubey, M. K., Mehdi, H., Kalla, S. K., & Krishanan, R. P. (2024). A Study of Industry 4.0 for Circular Economy and Sustainable Development Goals in the Environment of VUCA. Journal of Innovations in Business and Industry, 2(2), 95-102. https://doi.org/10.61552/JIBI.2024.02.005
  17. Violet, N., & Hazarika, A. (2024). The impact of financial inclusion on economic growth in Uganda: a case study of selected districts in central Uganda. Journal of Engineering, Management and Information Technology, 2(1), 23-34. https://doi.org/10.61552/JEMIT.2024.01.004
  18. Wang, F.-J., Choi, S. M., & Lu, Y.-Ch. (2024). The relationship between physical literacy and quality of life among university students: The role of motivation as a mediator. Journal of Exercise Science & Fitness, 22(1), 31-38. https://doi.org/10.1016/j.jesf.2023.10.002

Received 16.03.2024
Received in revised form 19.04.2024
Accepted 20.04.2024
Available online 27.08.2024