Circular economy (CE) is an interesting approach by many countries to address global environmental problems while gaining economic benefits. The implementation of CE is expected to minimize the use of resources and materials, thus contributing to sustainable development. Much literature has discussed CE assessment indicators and their evaluation, however to date, no single indicator has been proposed that can comprehensively measure the macro level of CE implementation. This study aims to develop a CE index to measure CE implementation at macro levels. In addition, it provides an overview of the impact of CE implementation on the financial, social, and environmental aspects of the economy. To this end, first, an in-depth literature review and descriptive analysis is conducted to identify existing global CE indicators and classify them into financial, social, and environmental categories based on available primary and secondary data. Then, the CE index is constructed using a mathematical equation by considering the CE framework, a single indicator of each aspect as a variable, and the variable’s weighting. Finally, the CE index is applied to evaluate the level of CE implementation of CE in Indonesia at macro level. This index is expected to be a valuable tool for measuring CE implementation and therefore improving CE performance.

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Circular Economy (CE) right now has been a point of interest among countries in the world as a commitment of the Paris Agreement to solve global environmental problems, which are simultaneously beneficial to economics. However, presently there is no single indicator available that easily be used as a CE standard due to various stresses among the countries. There are different approaches among countries in developing CE indicators, although they are still within the scope of the environmental and economic aspects. CE indicators could be developed based on region covering several countries, government/country level, and company level. Those indicators refer to the region and government policy and market or users of the product and a society where its public area would receive waste that the company might produce. This review will discuss only European Union and Poland, representing regions and countries. A region like the European Union (EU) considers ten indicators for CE, consisting of 21 sub-indicators. These indicators include self-sufficiency in raw materials, procurement for the green public, waste generation, food waste, recycling rate, recovery of specific waste streams, recycled materials to raw materials demand contribution, raw material trade-in, investment, jobs, and gross value-added, patents of secondary and recycling raw materials. While Poland, as a member of the EU, developed 25 CE indicators based on the seven dimensions of the economic point of view, such as economic prosperity, zero waste, innovative, renewable energybased economy, low carbon, smart economy, and spatially effective economy. Implementing a Comparative Analysis Method that compares one indicator to another, the results show that 6 of 10 indicators belonging to the EU overlap with four indicators of 25 belonging to Poland. Covering all indicators of both regions and countries, thus it would become 29 selected indicators that might be useful for developing Indonesia CE-Indicators, which are presently unavailable yet.