Purpose This study examines how faith-based institutions sustain circular economy practices under conditions of infrastructural constraint and organisational fragility. It develops and empirically grounds the Islamic Circular Economy Model (ICEM) through an in-depth case study of Bank Sampah Tebuireng (BST), a pesantren-based waste bank in East Java, Indonesia. Design/methodology/approach The study adopts a qualitative case study design. Data were collected through semi-structured interviews, participant observation, and document analysis, and were analysed thematically using an inductive–deductive coding strategy. The analysis focuses on the interaction between Islamic ethical values, institutional arrangements, and pragmatic financing practices in everyday waste management. Findings The findings show that Islamic ethical principles—particularly khalifah, amanah, and anti-israf—operate as moral infrastructure that structures participation, legitimises waste management practices, and sustains collective compliance within the pesantren. However, ethical commitment alone is insufficient to ensure long-term durability. Institutional codification, environmental education programmes, and context-specific infrastructural support are required to stabilise collective action beyond individual leadership. Financial sustainability at BST is achieved through a pragmatic-hybrid configuration combining modest community contributions, corporate social responsibility (CSR) partnerships, and revenue from recyclables, rather than reliance on speculative instruments such as green waqf, which remains aspirational in this case. Research limitations/implications The study is based on a single qualitative case and is therefore analytically, rather than statistically, generalisable. Future research could examine the ICEM framework across other faith-based institutions, regions, or comparative settings to assess its broader applicability. Practical implications The findings highlight the importance of embedding ethical motivation within formal institutional arrangements and providing targeted infrastructural support to address circularity bottlenecks. ICEM offers a transferable analytical framework for policymakers, religious leaders, and CSR partners seeking to strengthen the durability of community-based circular initiatives in the Global South. Originality/value This study advances circular economy scholarship by conceptualising ethics as operational moral infrastructure rather than symbolic motivation. It demonstrates how faith-based institutions can function as commons-oriented governance actors and how pragmatic-hybrid financing enables circular practices to persist under real-world constraints, offering a novel and empirically grounded contribution to value-driven sustainability transitions.

Islamic Circular Economy in Practice: Faith, Community, and Sustainable Partnerships in Indonesia’s Pesantren Waste Banks

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发表日期：

2026年4月20日

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Ahmad Arfah,
Arina Zulfa

摘要

Purpose

This study examines how faith-based institutions sustain circular economy practices under conditions of infrastructural constraint and organisational fragility. It develops and empirically grounds the Islamic Circular Economy Model (ICEM) through an in-depth case study of Bank Sampah Tebuireng (BST), a pesantren-based waste bank in East Java, Indonesia.

Design/methodology/approach

The study adopts a qualitative case study design. Data were collected through semi-structured interviews, participant observation, and document analysis, and were analysed thematically using an inductive–deductive coding strategy. The analysis focuses on the interaction between Islamic ethical values, institutional arrangements, and pragmatic financing practices in everyday waste management.

Findings

The findings show that Islamic ethical principles—particularly khalifah, amanah, and anti-israf—operate as moral infrastructure that structures participation, legitimises waste management practices, and sustains collective compliance within the pesantren. However, ethical commitment alone is insufficient to ensure long-term durability. Institutional codification, environmental education programmes, and context-specific infrastructural support are required to stabilise collective action beyond individual leadership. Financial sustainability at BST is achieved through a pragmatic-hybrid configuration combining modest community contributions, corporate social responsibility (CSR) partnerships, and revenue from recyclables, rather than reliance on speculative instruments such as green waqf, which remains aspirational in this case.

Research limitations/implications

The study is based on a single qualitative case and is therefore analytically, rather than statistically, generalisable. Future research could examine the ICEM framework across other faith-based institutions, regions, or comparative settings to assess its broader applicability.

Practical implications

The findings highlight the importance of embedding ethical motivation within formal institutional arrangements and providing targeted infrastructural support to address circularity bottlenecks. ICEM offers a transferable analytical framework for policymakers, religious leaders, and CSR partners seeking to strengthen the durability of community-based circular initiatives in the Global South.

Originality/value

This study advances circular economy scholarship by conceptualising ethics as operational moral infrastructure rather than symbolic motivation. It demonstrates how faith-based institutions can function as commons-oriented governance actors and how pragmatic-hybrid financing enables circular practices to persist under real-world constraints, offering a novel and empirically grounded contribution to value-driven sustainability transitions.