Enviro News Asia, Surabaya — Indonesia is strengthening its national plastic recycling industry by promoting a circular economy approach to improve waste management and increase the economic value of recyclable materials.
The Ministry of Environment and Environmental Control Agency (KLH/BPLH) highlighted the strategy during the National Seminar on Circular Economy Principles and the Legal Framework for Plastic Waste Management at Airlangga University in Surabaya on September 24, 2026.
Indonesia currently generates around 10.83 million tons of plastic waste annually. Meanwhile, 227 recycling companies have a combined installed capacity of 3.16 million tons per year, but their utilization rate stands at only 48 percent.
The gap between plastic waste generation and the availability of suitable industrial feedstock remains a major challenge. In 2024, Indonesia’s recycling industry still imported around 263,000 tons of raw materials to meet quality requirements, while 61 percent of domestic plastic waste remained inadequately managed.
Secretary of the Ministry of Environment and Secretary-General of BPLH Rosa Vivien Ratnawati said the circular economy should be treated as an essential framework for waste management rather than merely a technical option.
“Circular economy is not only a technical choice in waste management, but also a constitutional instrument. In its implementation, it is not an option but an obligation,” Rosa Vivien said during the seminar.
The government identified three structural challenges affecting the development of Indonesia’s plastic recycling ecosystem.
The first is the absence of binding national quality standards for recycled plastic feedstock that are aligned with industrial requirements. The second is the limited availability of economic instruments that can make recycled materials more competitive against virgin plastic. The third is the implementation of Extended Producer Responsibility, or EPR, which remains voluntary rather than mandatory, limiting the effectiveness of supervision, law enforcement and sanctions.
The informal sector also plays a significant role in supplying materials to recycling industries. Waste pickers, collectors and waste banks provide around 85 percent of recycled industrial feedstock.
The circular economy chain has substantial economic potential. Its value is estimated at around Rp3 trillion during initial collection, increasing to Rp5.8 trillion after sorting and reaching Rp10.9 trillion after processing by recycling industries.
KLH/BPLH is therefore promoting the integration of informal-sector workers into the formal system through business legalization, social protection, standardized sorting practices and digital transaction systems.
The government is also seeking to strengthen the legal framework for plastic waste management through five main pillars: binding cross-agency regulations, mandatory EPR obligations supported by effective sanctions, feedstock standardization, integration of the informal sector, and fiscal and non-fiscal incentives and disincentives.
The ministry also emphasized the need to clearly distinguish EPR obligations from corporate Social and Environmental Responsibility programs to strengthen transparency and accountability.
Director of the Graduate School at Airlangga University, Prof. Achmad Chusnu Romdhoni, welcomed the research and policy recommendations discussed during the seminar.
“The research provides recommendations that require time and a process to implement, but they are highly feasible. With KLH/BPLH serving as the coordinator, I believe plastic waste management in Indonesia can improve in the future,” Romdhoni said.
KLH/BPLH said continued coordination among government institutions, businesses, academics and informal-sector workers will be needed to build a stronger recycling ecosystem.
The government will also continue to promote waste sorting at the source and strengthen domestic recycling industries as part of efforts to achieve a sustainable Clean Indonesia target. (*)
