Polycentric Collaborative Governance and Circular Economy in Urban Waste Systems: Public Value Co-Creation Through CSR–Community Partnerships in Surabaya, Indonesia

Abstract

This study examines how polycentric collaborative governance enables the implementation of circular economy principles in urban waste management through a case analysis of the Bintang Mangrove Waste Bank (BSBM) in Surabaya, Indonesia. Using a qualitative design involving in-depth interviews, field observations, and document analysis, the research explores how government agencies, corporate social responsibility (CSR) actors, and community organizations coordinate within a multi-level governance system. The findings reveal that Surabaya’s waste management system operates through interconnected decision centers that combine regulatory facilitation by the Environmental Agency (DLH), resource and capacity support from PT PLN’s CSR initiatives, and community-led recycling practices. These interactions generate an adaptive governance network characterized by trust, shared learning, and reciprocal resource flows. The collaboration evolves through three phases—initiation, consolidation, and institutionalization—demonstrating increasing coordination, strengthened incentives, and deeper community ownership. The study also shows that CSR-backed waste banks expand circular economy outcomes by diverting waste from landfills, creating household economic value, and fostering behavioral change. Overall, the research provides empirical evidence that integrating polycentric and collaborative governance with circular economy frameworks creates a robust platform for public value co-creation and strengthens the sustainability of urban environmental management in emerging cities.