Sustainability Performance Management Framework for Circular Economy Implementation in SOPE

What is it about?

The circular economy concept needs to be part of the performance management system so that it is in line with a company’s vision and mission. Thus, the circular economy will play an important role at the operational level of companies. The circular economy needs to be internalized, starting by formulating the company’s vision and mission, establishing strategic objectives and performance indicators, and creating resource allocation policies. This research aims to design a sustainable performance management system in the context of a circular economy for state-owned plantation enterprises (SOPEs). This study used a qualitative research coding method that was validated in three SOPEs in Indonesia. Validation was performed by comparing the framework based on the conceptual formulation with the data and information obtained during field assessment. Primary data came from interviews with 15 managers, while secondary data came from official company documents. The research results show that the initial framework that was built is in accordance with the results of the exploration of the circular economy strategic objectives in the three SOPEs. The results of the 100 percent validation and perception test of managers on the range of values are important. Therefore, the proposed framework can be used in SOPE.

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Why is it important?

This research is important because it develops a structured framework to measure and manage sustainability performance in state-owned plantation enterprises, which play a strategic role in Indonesia’s economy. By integrating circular economy principles, the study responds to the urgent need to reduce environmental impacts, improve resource efficiency, and enhance social and economic value creation. The framework helps enterprises align with global sustainability goals, such as the SDGs, while providing practical tools for managers to monitor progress, strengthen accountability, and build long-term competitiveness in a rapidly changing global market.

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