Exploring the role of social enterprises in a just transition to the circular economy: A case study of waste management and recycling sector in Indonesia

Background The need for an inclusive transition considering multiple dimensions of environmental sustainability, social inclusion, decent work, and inequality reduction has been largely demanded and triggered the mechanism of ‘just transition’, including in the circular economy objectives. Despite growing interest in the role of social enterprises in sustainability transitions, limited research has explored how they specifically embed just transition principles within circular economy transition, particularly in the waste management and recycling sector of emerging economies like Indonesia. Methods This study employs a qualitative case study approach to examine how social enterprise business models contribute to a just transition within Indonesia’s circular economy waste management sector. Using a comparative and interpretative case study method (Lijphart, 1971), the research explores the unique and evolving role of social enterprises in introducing innovative solutions across the waste management value chain (van Waes et al., 2018). Data were collected through semi-structured interviews with social enterprise founders and key stakeholders and thematically analyzed to identify embedded just transition elements in their business models. Results The study found that most of the social enterprises, in this case, have embedded just transition elements in their business models, such as creating decent jobs, providing capacity building for local communities, bridging social dialogues, acting as intermediaries between different stakeholders, and strengthening social capital. The study also found that social enterprises have the potential to disrupt and influence the existing socio-technical system in the waste management regimes in Indonesia, especially in community-based waste management and digital platforms models. Conclusions Despite their unique role in just transition, social enterprises in this sectors face challenges related to financial sustainability, and balancing commercial and social objectives.To scale their impact, supportive ecosystems with infrastructure, incentives, and policy frameworks are needed. Addressing these challenges can further enhance the role of social enterprises in driving a just circularity transition in waste management.