EKONID Event

Waste Reduction by Producers in Indonesia: Opportunities and Challenges Towards Developing Sustainable Businesses

31/08/2022

Waste management is a global issue that many nations find troublesome and challenging to solve. The advancement of times in keeping with society's modern lifestyle promotes an ever-increasing use of plastic products. The effects of waste on the environment are also exacerbated by inadequate waste management systems in many nations. Stakeholders must therefore identify a comprehensive, integrated solution. 

The United Nations Environment Assembly (UNEA) agreed in March 2022 that all nations should start negotiations on a legally binding international agreement on plastic solutions. This agreement is expected to address the full lifecycle of plastics, including production, design, and disposal, as well as the development of reusable and recyclable goods and materials. This demonstrates how the Reduce, Reuse, Recycle (3Rs) practice is being stressed as a highly intensified agenda throughout the world. 

In Indonesia, regulations related to waste management have evolved over the years. One of the prominent approaches being worked on is the Extended Producer Responsibility (EPR) scheme. The responsibility of producers in waste management has been regulated in: 1) Law No. 18 of 2008, article 15, which states that manufacturers are responsible for the disposal of packaging and products that are not or are difficult to compost; and 2) Regulation No. 81 of 2012 which require the industry to use recyclable materials and to take care of the recycling of its packaging materials. Based on this, an implementation regulation was issued through Minister of Environment and Forestry Regulation No. 75 of 2019 regarding a waste reduction roadmap by producers, which includes the consumer goods manufacturing industry, the hospitality industry and the retail sector. While the first two are expected to cut off their waste volumes by up to 30% in 2029, the retail sector should replace single-use plastic bags with environmentally friendly alternatives. 

On May 24, 2022, a national dialogue was held by the Ministry of Environment and Forestry (Kementerian Lingkungan Hidup dan Kehutanan / KLHK) of the Republic of Indonesia with the theme "Waste Reduction by Producers: Opportunities and Challenges towards a Sustainable Business". In this seminar, Mr. Seth Van Doorn, Project Manager of Foreign Policy Instruments of the European Union Delegation for Indonesia, brought attention to the seriousness of the problem of marine plastic waste pollution. He noted that between 60 to 90% of the waste dumped into the ocean is made up primarily of straws, drinking glasses, and plastic bags. This further demonstrates how Indonesia's waste management system is still insufficient. 

On the other hand, KLHK claimed that the system of waste management is still being worked on in Indonesia. Head of Sub-Directorate of Goods and Packaging, Ujang Solihin Sodik, said that the Ministry had been working with more than 100 producers this year to establish their roadmap and that 33 producers would have submitted their waste reduction roadmap documents by the end of 2021 whilst initiating various innovations as they jumpstart their waste management program. Additionally, Rosa Vivien Ratnawati, the Director General of Waste Management, Toxic Substances, and Waste at the Ministry, urged producers not to consider this regulation as a burden but as a guideline for businesses in order to compete internationally while showing a strong commitment towards waste management issues. 

The dialogue further highlighted a number of challenges in implementing the waste reduction strategy. The problem with the distribution of single-use packaging, like sachets, is one of the most noticeable. It is well recognized that using sachets to ensure product cleanliness is practical. This is in accordance with the National Food and Drug Supervisory Agency鈥檚 (Badan Pengawas Obat dan Makanan or BPOM) regulation on Good Manufacturing Practice for Processed Food (CPPOB) and the scope of Good Manufacturing Practice for Cosmetics (CPKB), which highlight product and packaging hygiene as a key factor in providing product distribution permits. However, sachets, on the other hand, only serve as environmental waste as it can only be used once and has little economic value for recycling while being available in a variety of sizes, down to the smallest and thinnest package available. 

Nevertheless, the challenges that arise in this regard have actually spawned innovations and presented opportunities for local waste management businesses in Indonesia. Several waste collection projects through bulk stores and refill stations are seen as very important innovations as they can directly prevent the increasing use of sachets by the public. These innovations are shown by several local businesses such as , which provides applications for waste pick-up and has served more than 11 thousand homes; which serves refills for consumer goods products, and also which serves refills by mobile applications for their consumer. In addition, new financing schemes such as waste credits provided by can offer alternative financing opportunities. 

In addition, other problems that are often found include the lack of waste separation by consumers, inadequate infrastructure in waste collection and processing, uneven quality of waste infrastructure in various regions of Indonesia, no collective collection systems that emphasized by the waste reduction regulation, and lack of financial support or incentives to waste industry players. 

In this regard, the German-Indonesian Chamber of Industry & Commerce (EKONID), in partnership with the Indonesia Packaging Recovery Organization (IPRO) and DKI Jakarta Provincial Environmental Agency (Dinas LHK), with a support from the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (Germany) will held a hybrid seminar titled "Waste Management - Shared Responsibilities Adoption in Indonesia and Abroad" on Thursday, September 22,  2022. The seminar will discuss the challenges that stakeholders are faced with when implementing an EPR approach and how these challenges can be addressed. Speakers will come from Indonesia and abroad to share their experiences. 

 

About epr-indonesia.id  

EKONID with the support from 鈥淓nvironmental Protection Made in Germany鈥 initiative of the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) has developed the epr-Indonesia.id platform which aims to be the primary source of all information on all activities related to EPR in Indonesia. Furthermore, epr-indonesia.id facilitates partnerships to contribute in the effort of achieving sustainability between economic growth and environmental impact. More at