Implementation Effectiveness of Circular Economy Practices on Medical Devices Industry of Indonesia: A Case Study of PT Kimia Farma Tbk and PT Kalbe Farma Tbk (2020-2022)
Keywords:
Circular economy, Medical device industry, Sustainability, Resource efficiency, PandemicAbstract
Indonesia medical device industry experienced significant acceleration during COVID-19 pandemic era (2020-2022), marked by significant increased of demand that challenging conventional manufacturing best practices. This period also witnessed heightened motivation from both government and industry to reduce national dependence on imports. This situation has spurred industry participants to adopt circular economy practices as a more efficient and effective alternative approach. This research employed qualitative analysis of official sustainability reports of PT Kimia Farma Tbk and PT Kalbe Farma Tbk for the period 2020 to 2022. The objective was to examine implementation of circular economy principles into national medical device industry as a regenerative approach that maximizes value of manufacturing resources. This research identified variety of positive outcomes following the implementation of circular economy practices. These outcomes demonstrate significant transformative change, evidenced by waste reduction, material recycling and resource efficiency. These changes are indicative of positive impact of circular economy practices on both the company's performance specifically and medical device industry in general. The significant contribution of circular economy practices has enhanced the resilience of national medical device industry, improved resource efficiency, reduced negative environmental impact of industrial activities, supporting both economic and ecological sustainability. This research offers new insights into strategic decision-making and can serve as reference for future empirical studies on how to maximize the sustainable productivity of national medical device industry.
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