Financial Feasibility Analysis in Circular Economy Projects: a Case Study of Salt Waste Utilization Through Clean Production Technology

Abstract

Abstract

Background: The salt industry in Madura is one of the largest contributors to meeting national salt needs. Although salt has great potential as an economic resource, the conventional salt production process produces waste that has not been optimally managed. As a salt production center, the amount of salt waste produced by the salt production process in Madura is very abundant in one season. However, there is no innovative and integrated solution to process this waste so that it can produce products with economic value.
Purpose: This study aims to investigate the financial feasibility of salt waste utilization projects through the implementation of clean production technology as an integrated part of the circular economy. The existence of this research is expected to provide innovative solutions in the utilization and management of salt waste and reduce the environmental impact that can be caused by the salt production process. 
Design/methodology/approach: This study adopts a quantitative approach with a descriptive method, and was carried out in salt production centers in the Madura region in the period from May to August 2025. The data used includes primary and secondary data, which are collected through various techniques, such as observation, interviews, surveys, documentation, and literature studies. The financial feasibility analysis was conducted using four main metrics: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Benefit Cost Ratio (BCR).
Findings/Results: The results of the study show that the bittern waste utilization project has significant economic potential and is able to create new added value for the salt industry. These activities can provide competitive financial benefits, relatively low risk, and a fast return on capital. In addition to economic benefits, the integration of circular economy principles in the implementation of clean production also makes a real contribution to reducing liquid waste disposal, resource use efficiency, and opportunities to improve social welfare through the creation of new jobs.
Conclusion: Thus, the use of bittern waste through the circular economy strategy is declared financially feasible while supporting the goal of sustainable industrial development.
Originality/value (State of the art): Theoretically, the implementation of clean production technology is not only projected to increase production efficiency and provide economic added value, but also to support environmental preservation and sustainability. Therefore, the results of this research are expected to be a reference for the development of sustainable business models that are in line with the principles of the circular economy.

Keywords: financial feasibility, salt waste, bittern, circular economy, clean production