AHK Indonesia4

Business opportunities in Indonesia through Extended Producer Responsibility

Grant recipient

DIHK Service GmbH

Cooperations

  • PRAISE und PRO
  • City government in Banjarmasin and Tasikmalaya

Term

completed

08/01/2021 to 12/31/2022

Priority areas

Circular economy

Funding priority

Initial projects

Target countries

Indonesia

Indonesia has set ambitious targets for reducing waste and increasing recycling rates. Government and industry are under pressure. As the world's second largest contributor of plastic waste to the world's oceans, Indonesia is under scrutiny both locally and internationally. 

Various initiatives have been started. In March 2019, Indonesia became a member of the Global Plastic Action Partnership (GPAP), hosted by the World Economic Forum. Through the Indonesia National Plastic Action Partnership (NPAP), the necessary multi-stakeholder dialogue is taking place to realize the transformation towards a true circular economy.  Members of the private sector initiative Packaging and Recycling Association for Indonesia Sustainable Environment (PRAISE) have already committed to increasing the local availability and use of recycled materials. The Indonesia Packaging Recovery Organization (IPRO) was established to achieve these goals. IPRO is to organize the improved collection of packaging and also develop new packaging concepts that can be recycled in a simple manner. 

Pressure is also coming from the regulatory side. Producers of food, cosmetics and other consumer goods must reduce the waste generated by their own products by 30 percent by 2029, in particular through recycling and reuse. This affects packaging made of plastic, aluminium (cans), glass and paper. From 2030, there will be a complete ban on plastic straws, plastic bags and single-use polystyrene packaging. To achieve the targets, producers, operators of restaurants, hotels and shopping centres affected by the regulation can enter into cooperative agreements with (i) formally registered waste banks, (ii) landfills with adequate recovery systems, and (iii) recycling centres. 

The implementation schedule for 2021 called for the development of packaging take-back schemes and increased cooperation with waste banks and other collection points. Pilot projects and baseline studies were to be carried out in 2022. From 2023, the implementation of the developed concepts should start. As part of the project, reporting on preparatory developments in Indonesia was intensified in order to identify business opportunities for German companies at an early stage.

Contact

Stephan Blocks AHK Indonesia / EKONID
Jl. H. Agus Salim No. 115
10310 Jakarta
+62 2150 985 800-224 Email