The paper industry is an industry that has high economic value. In the past, the use of wood-based virgin pulp was still the principal ingredient in the paper production process, but with increasing global awareness of its negative impact, the paper industry has switched to using paper waste as the main raw material. The increasing adoption of technology and the cheaper recycled paper prices are driving this movement even more. Using recycled paper as its raw material goes through several more processes to be used as raw material for making fresh paper. In the production process, waste material will appear as water, plastic, sludge (mud), ink, and so on. Currently, waste management and reuse of various kinds of remaining production are still not optimal. The Paper Industry (PI) company is a paper company that produces over 40 tons of plastic waste per day from recycled paper. So far, PI has been trying to manage the waste by using an incinerator, which is then reused as a source of steam for the production process. However, the intake from the process is still insufficient and, economically, it is still more profitable to use coal as the main raw material for the boiler. This is only one of many side products that should still be reusable. Therefore, researchers want to apply Circular Economy (CE) as a solution to this problem. Circular Economy (CE) was chosen as a tool to optimize production processes, design processes, and company operations. The CE approach is projected to have an overall positive impact on the PI. With its application, PI will get an economic surplus, improve the welfare of workers and residents, and maintain environmental conditions due to waste reduction.