CSWM UI and Bank Indonesia Advancing Circular Economy MSME Opportunities from Pineapple Leaf Fiber Waste

Prabumulih, 9 April 2026 — Bank Indonesia and the Center for Sustainability and Waste Management, Universitas Indonesia (CSWM UI) held a Focus Group Discussion titled “Value Chain Mapping and Development Needs for MSMEs Based on Pineapple Leaf Fiber Waste” at Favehotel Prabumulih. This collaboration reflects a shared commitment to strengthening local economic development through circular economy and green business approaches, particularly by transforming pineapple leaf waste into a value-added resource for MSMEs.

Through this partnership, Bank Indonesia contributes to strengthening MSME development, local economic empowerment, and inclusive business ecosystems, while CSWM UI provides research-based support, sustainability expertise, and facilitation for circular business model development. The FGD served as an initial platform to gather stakeholder insights on existing conditions, key challenges, value chain gaps, and development needs for pineapple leaf fiber-based MSMEs.

The discussion positioned pineapple leaf waste not merely as agricultural residue, but as a strategic input for green business innovation. Its potential applications include eco-friendly textile fibers, biomaterials, composites, and handicraft products. By utilizing this local resource, the initiative is expected to reduce agricultural waste, create new income opportunities, strengthen MSME competitiveness, and support a more inclusive circular economy at the regional level.

The FGD brought together local government, farmers, MSME actors, financial institutions, and supporting organizations to identify technical, institutional, market, and financing barriers. The session also featured presentations from Prof. Dr. Dianwicaksih Arieftiara on best practices and benchmarking for natural fiber-based MSME development from a circular economy perspective, as well as a representative from the Prabumulih Agriculture Office on local potential and government programs related to pineapple leaf fiber waste utilization.

Through this activity, Bank Indonesia and CSWM UI encouraged the development of MSMEs that are not only commercially viable, but also aligned with circular economy principles and green business transformation. The FGD results are expected to support the formulation of value propositions, stakeholder roles, collaboration strategies, and practical recommendations for building a sustainable pineapple leaf fiber-based business ecosystem in Indonesia.

Stakeholders and collaborators of the Pineapple leaves MSMEs in Prabumulih
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