Abstract

The furniture industry has great contributing for Indonesia. However, its operational activities cause environmental damage caused by waste and scarcity of raw materials. Currently, the linear economy applied by most of the furniture industry is unable to solve this problem. Circular economy entered as a restorative or regenerative concept that can optimize resources and minimize waste. In the process of transition from linear economy to a circular economy, there are barriers to its implementation. This research was conducted to evaluate the barriers in the implementation of circular economy in the furniture industry and then determine factors that have a significant influence as barriers to the circular economy in furniture industry. After obtaining the results in the form of factors that have a significant influence, strategic recommendations are proposed to the government and furniture industry. The method used in this research is cut off point method and the Fuzzy DEMATEL method. Respondents of this study consisted of the government, furniture industry, community, and academia. The results showed that government policies, poor of management commitment, lack of knowledge, lack of coordination and collaboration, economic / financial challenges, lack of resources, consumer awareness, and lack of skills are the most influential barrier factors in implementation of circular economy in furniture industry.

Keywords

Circular Economy, Barriers, Furniture and Fuzzy DEMATEL