24 May 2022: The National Dialogue on Waste Reduction by Producers, Opportunities and Challenges Toward Sustainable Business, a hybrid event held by the Indonesian Ministry of Environment and Forestry (MoEF), heard that 5-8 million tons of plastic waste has been thrown into the ocean, driven by urbanisation, economic growth, and changing patterns of consumption and production.
Mr Seth van Doorn, of the European Union Delegation to Indonesia, said the way the waste is collected, sorted, and recycled is not effective, and shows now more than ever the urgent need to switch to a circular economy.
‘In Indonesia, we are working closely with the Ministry of Environment and Forestry, which has launched the road map for waste reduction by producers, which operationalises with the key factors of the circular economy. It provides direction and a timeline to phase out single-use plastics,’ he said.
The road map is MoEF Regulation No 75/2019 on the Road Map of Waste Reduction by Producers to reduce plastic waste, limit waste piles, and promote waste recycling and reuse.
Ms Rosa Vivien Ratnawati, the Ministry’s Director General for Waste Management, said the road map is set for 2020-2029, with the goal of reducing waste as well as plastic, paper, and aluminium packaging from all products and packaging by 30%. The regulation requires producers to submit planning documents toward this goal.
‘Producers should not be discouraged by this regulation, as it provides a guideline to compete in the global market. By showing strong commitment for waste management, the competition in both domestic and international markets will be easier,’ she said.
‘I see that our friends in the industry have the enthusiasm and good intention to reduce waste. But it takes planning. Just do what you can first before moving into redesigning.’
Mr Ujang Solihin Sidik, MoEF Head of Subdirectorate for Producers Governance, said he has seen good growth in new business models containing innovations toward sustainability since the road map was launched in 2019.
‘We have identified 145 social entrepreneurships that welcome this policy. There are 73 bulk stores, not to mention re-use businesses. The growth has been amazing,’ he said.
‘A new business opportunity arises when a regulation comes up. Don’t take it as a burden, but as an opportunity to build a sustainable business.’
Mr van Doorn said Indonesia has the opportunity to move to a circular economy, particularly as it has traditional knowledge and solutions to produce environmentally sustainable packaging.
One example is the ubiquitous warung (kiosk), where people buy food commodities such as rice or oil in bulk and bring their own containers. This inspired Ms Desiree Irawati and her partners to open Saruga Indonesia, focusing on bulk stores, refill stations, and community services.
‘We are working with the FMCG [fast moving consumer goods] industry and fellow micro, small, and medium-sized enterprises [MSMEs] to meet customer demand. We have bulk stores, dispensing machines, and refill stations where people can shop according to their needs. We also provide a community service where children, for instance, can come to learn,’ she said.
The bulk system, she added, creates a profit margin as it eliminates the packaging cost.
The refill business, according to the panel, could be a strong solution in phasing out single-use plastic, particularly sachets.
Mr Arustiyono, the Director of Cosmetics Supervision at Indonesia's Food and Drug Monitoring Agency (BPOM), highlighted the potential good business of cosmetics refills.
'Cosmetics refills are worth hundreds of billions of rupiah. I would like to encourage law abiding business owners in the cosmetics field to tap the refill market early enough, before the illegal cosmetic [producers] dominate the market,' he said.
Rocky Pairunan, Advisor at the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) project for the reduction of plastic waste and marine litter in East and Southeast Asia, said bulk stores are a high potential business field in Indonesia, where the lifestyle is driven by producers, as well as social media and influencers.
'Government policy and regulation really helps, for instance in restricting straws,' he said.
Also read: Keeping Up with the Increasing Plastic Waste: Voluntary Initiatives Alone No Longer Enough
Mr Ernest Layman, CEO and Co-founder of Rekosistem, said running an environmentally friendly business in Indonesia is costly due to logistical challenges, such as the need for hundreds of warehouses and recovery facilities.
‘The margin is also slim because producers need extra cost for research and development, including how to separate and distribute waste to recycling facilities,’ he said.
He urged the government to provide financial incentives such as tax deductions, as the existing ecosystem and infrastructure is not yet supportive, resulting in high costs.
Mr Laksamana Sakti, Siklus Refill Head of Business Operations, voiced the same concern, and said he hoped for efforts such as free promotion to help companies with business initiatives to reduce pollution.
Mr Rocky said sustainable business is still uncharted territory for most, and is very different from conventional business, requiring more discussions for both industry players and regulators.
‘Our studies show an ecosystem needs to be established. Industry associations can work with the government to come up with negotiations, standardisations, and what is needed by businesses,’ he said.
Also read: EPR for Plastics in Viet Nam: Challenges and Opportunities
Communication Desk
24 May 2022: The National Dialogue on Waste Reduction by Producers, Opportunities and Challenges Toward Sustainable Business, a hybrid event held by the Indonesian Ministry of Environment and Forestry (MoEF), heard that 5-8 million tons of plastic waste has been thrown into the ocean, driven by urbanisation, economic growth, and changing patterns of consumption and production.
Mr Seth van Doorn, of the European Union Delegation to Indonesia, said the way the waste is collected, sorted, and recycled is not effective, and shows now more than ever the urgent need to switch to a circular economy.
‘In Indonesia, we are working closely with the Ministry of Environment and Forestry, which has launched the road map for waste reduction by producers, which operationalises with the key factors of the circular economy. It provides direction and a timeline to phase out single-use plastics,’ he said.
The road map is MoEF Regulation No 75/2019 on the Road Map of Waste Reduction by Producers to reduce plastic waste, limit waste piles, and promote waste recycling and reuse.
Ms Rosa Vivien Ratnawati, the Ministry’s Director General for Waste Management, said the road map is set for 2020-2029, with the goal of reducing waste as well as plastic, paper, and aluminium packaging from all products and packaging by 30%. The regulation requires producers to submit planning documents toward this goal.
‘Producers should not be discouraged by this regulation, as it provides a guideline to compete in the global market. By showing strong commitment for waste management, the competition in both domestic and international markets will be easier,’ she said.
‘I see that our friends in the industry have the enthusiasm and good intention to reduce waste. But it takes planning. Just do what you can first before moving into redesigning.’
Mr Ujang Solihin Sidik, MoEF Head of Subdirectorate for Producers Governance, said he has seen good growth in new business models containing innovations toward sustainability since the road map was launched in 2019.
‘We have identified 145 social entrepreneurships that welcome this policy. There are 73 bulk stores, not to mention re-use businesses. The growth has been amazing,’ he said.
‘A new business opportunity arises when a regulation comes up. Don’t take it as a burden, but as an opportunity to build a sustainable business.’
Mr van Doorn said Indonesia has the opportunity to move to a circular economy, particularly as it has traditional knowledge and solutions to produce environmentally sustainable packaging.
One example is the ubiquitous warung (kiosk), where people buy food commodities such as rice or oil in bulk and bring their own containers. This inspired Ms Desiree Irawati and her partners to open Saruga Indonesia, focusing on bulk stores, refill stations, and community services.
‘We are working with the FMCG [fast moving consumer goods] industry and fellow micro, small, and medium-sized enterprises [MSMEs] to meet customer demand. We have bulk stores, dispensing machines, and refill stations where people can shop according to their needs. We also provide a community service where children, for instance, can come to learn,’ she said.
The bulk system, she added, creates a profit margin as it eliminates the packaging cost.
The refill business, according to the panel, could be a strong solution in phasing out single-use plastic, particularly sachets.
Mr Arustiyono, the Director of Cosmetics Supervision at Indonesia's Food and Drug Monitoring Agency (BPOM), highlighted the potential good business of cosmetics refills.
'Cosmetics refills are worth hundreds of billions of rupiah. I would like to encourage law abiding business owners in the cosmetics field to tap the refill market early enough, before the illegal cosmetic [producers] dominate the market,' he said.
Rocky Pairunan, Advisor at the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) project for the reduction of plastic waste and marine litter in East and Southeast Asia, said bulk stores are a high potential business field in Indonesia, where the lifestyle is driven by producers, as well as social media and influencers.
'Government policy and regulation really helps, for instance in restricting straws,' he said.
Also read: Keeping Up with the Increasing Plastic Waste: Voluntary Initiatives Alone No Longer Enough
Mr Ernest Layman, CEO and Co-founder of Rekosistem, said running an environmentally friendly business in Indonesia is costly due to logistical challenges, such as the need for hundreds of warehouses and recovery facilities.
‘The margin is also slim because producers need extra cost for research and development, including how to separate and distribute waste to recycling facilities,’ he said.
He urged the government to provide financial incentives such as tax deductions, as the existing ecosystem and infrastructure is not yet supportive, resulting in high costs.
Mr Laksamana Sakti, Siklus Refill Head of Business Operations, voiced the same concern, and said he hoped for efforts such as free promotion to help companies with business initiatives to reduce pollution.
Mr Rocky said sustainable business is still uncharted territory for most, and is very different from conventional business, requiring more discussions for both industry players and regulators.
‘Our studies show an ecosystem needs to be established. Industry associations can work with the government to come up with negotiations, standardisations, and what is needed by businesses,’ he said.
Also read: EPR for Plastics in Viet Nam: Challenges and Opportunities
Communication Desk
