Enviro News Asia, Jakarta – The government will shut down 343 open-dumping landfill sites across Indonesia. The closure of these landfills is expected to create various economic opportunities worth more than IDR 127 trillion.
These opportunities are based on a study conducted by the Deputy for Waste, Hazardous and Toxic Material Management at the Ministry of Environment, in collaboration with the Ministry of Industry and the National Development Planning Agency (Bappenas).
“We have identified at least seven potential business sectors with a total economic value of IDR 127.5 trillion per year that can be developed through the transformation of the national waste management system,” said Minister of Environment Hanif Faisol Nurofiq in a written statement on Sunday, March 2, 2025.
According to him, based on economic analysis presented during a working meeting with Commission XII of the House of Representatives (DPR), closing open-dumping landfills and transitioning to an integrated waste management system not only provides environmental benefits but also unlocks significant economic opportunities.
These opportunities include the development of the recycling industry, compost and organic fertilizer production, waste-to-energy plants, alternative fuel production, valuable material recovery systems, as well as waste management consulting and technology services.
The seven potential business sectors are:
- Recycling industry with an economic potential of IDR 42.3 trillion per year, covering plastic, paper, metal, and glass recycling;
- Compost and organic fertilizer production with an economic potential of IDR 18.7 trillion per year;
- Waste-to-energy with an economic potential of IDR 26.5 trillion per year;
- Refuse-derived fuel (RDF) production with an economic potential of IDR 13.8 trillion per year;
- Urban mining system for valuable metal recovery with an economic potential of IDR 9.7 trillion per year;
- Sharing economy and digital waste applications with an economic potential of IDR 7.2 trillion per year; and
- Waste management consulting and technology services with an economic potential of IDR 9.3 trillion per year.
The study also identified 12 sustainable business models that can be developed by micro, small, and medium enterprises (MSMEs), cooperatives, and startups, requiring initial investments ranging from IDR 250 million to IDR 5 billion. The projected internal rate of return (IRR) ranges from 18-27% over a five-year investment period.
“This will raise awareness among individuals and create opportunities to implement a circular economy while generating employment,” Hanif stated.
