Natural Resource Management to Support Tourism Using Circular Economics Business Model: Case in Jatirejoyoso Village, Malang Regency, Indonesia

Poverty alleviation and rural development has become one of priority for Indonesian government. It requires the contribution from local government to work hand in hand with various stakeholders in order to develop their local area and people based on their potential resources. The research aims to establish sustainable business model for rural development. One of the example is Jatirejoyoso village, Malang Regency that prepare their self to establish a tourism site which focus on agroecological farming system and circular economy concept. Thus, this research is conducted in Jatirejoyoso Village, Malang Regency. The research uses qualitative approach using DBR (Design Based Research). Moreover, this research uses SWOT analysis and BMC (Business Model Canvas) analysis. The data collected by doing FGD (Focus Group Discussion), in-depth interview, documentation and observation. The research’s informants are farmers, official rural government, leader of local community development program, and youth people. The research’s findings concludes that (1) Jatirejoyoso Village has potential to be developed into tourism area by managing their natural resource in agricultural sector and optimizing the farmer’s involvement, (2) The local communities independently initiate and develop the tourism spot, (3) The local people and authorities start to manage their natural resource, for instance by establishing refugia park nearby paddy field, (4) The local people has collective action’s awareness in order to sustainably optimize their potential to improve the livelihoods using circular economy approach.