This research aims to formulate a circular economy-based MSME business model through a pilot program at several Bank Indonesia Domestic Representative Offices. Using a mixed-methods approach, the study combines quantitative analysis, including Cost-Benefit Analysis (CBA), Social Benefit-Cost Ratio (SBCR), and an Input-Output model, with qualitative analysis through interviews, FGDs, and field observations. The results of the study show that the implementation of the circular economy by MSMEs provides significant economic and social benefits, including increased cost efficiency, increased value creation, reduced waste, and a positive contribution to labor absorption. The integration of social benefits into the feasibility analysis showed an increase in the SBCR ratio, reinforcing the argument that the circular economy plays a role in lowering environmental impact and improving local well-being. This study recommends strengthening supply chain partnerships, increasing access to green f​inancing, advancing business digitalization, implementing quality certification, and developing cluster ecosystems as acceleration strategies.

Keywords: Circular Economy, MSMEs, Input-Output, Cost-Benefit Analysis