Jakarta, Indonesia – May 30, 2024 – Indonesia, as one of the largest economies in Southeast Asia, faced significant challenges in waste management, particularly in managing packaging waste predominantly composed of plastic. According to data compiled by the Ministry of Environment and Forestry (KLHK) in 2022, Indonesia generated 68.7 million tons of waste annually. Packaging waste was a major contributor to environmental pollution, landfill accumulation, and marine pollution. A 2020 report by the Indonesia National Plastic Action Partnership (NPAP) noted that in 2017, the downstream sector generated approximately 6.8 million tons of plastic waste, with around 76% of flexible plastic waste, equivalent to 2.2 million tons, being inadequately managed.

The Ministerial Regulation LHK No. P75/2019 on Waste Reduction by Producers demanded the responsibilities of producers, including those in the manufacturing, food and beverage, and retail industries. Producers were encouraged to reduce waste through packaging restrictions, recycling processes, and reuse, which had to be reported to KLHK. The concept of Extended Producer Responsibility (EPR) embedded in this regulation aligned with the mandatory EPR principles outlined in Article 15 of Law No. 18 of 2008 on Waste Management. This mandated that “producers are required to manage packaging and/or products they produce that are difficult to decompose naturally.”

This regulation marked a significant step by the government to push producers to take responsibility for their packaging waste by mandating the creation of waste reduction roadmaps until 2029 and requiring producers to report these roadmaps to the government. Rosa Vivien Ratnawati, Director General of Waste, Hazardous Waste, and Toxic Materials Management, KLHK, highlighted the critical need for sustainable business practices, stating, “Sustainable business is no longer an option but a necessity for today and the future. It balances economic growth, social welfare, and environmental health.”

As a strategic step forward and in preparation for the regulation’s fifth anniversary, the development of Ministerial Regulation LHK No. P75/2019 needed to be taken seriously to enhance its effectiveness in providing legal certainty and material completeness oriented towards mandatory EPR. Thus, producers were not only mandated to create roadmaps but also obligated to implement these roadmaps in a fair manner for all stakeholders. Consequently, the efforts of waste reduction by producers could proceed effectively.

To effectively implement mandatory EPR in Indonesia, clear regulation of producer obligations and governance was essential. Therefore, the forum discussion titled “Producers’ Perspectives on EPR Implementation Policies in the Business Environment” was necessary to open dialogues from producers regarding their obligations and several aspects of EPR mandatory governance. This focused discussion hosted by the Ministry of Environment and Forestry along with ADUPI and GIZ gathered producer stakeholders to discuss and seek solutions related to their involvement in implementing EPR in Indonesia. The discussion aimed to identify issues, challenges, and opportunities faced by producers in fulfilling their obligations according to Ministerial Regulation No. P75/2019, and explore strategies to improve the effectiveness of mandatory EPR implementation.

Additionally, this forum served as a platform for knowledge and experience exchange between producers, regulators, and other stakeholders, enabling the formation of strategic collaborations in EPR implementation. The outcomes of this forum were expected to provide input from producers to policymakers to develop a comprehensive legal framework for mandatory EPR that addressed specific needs and challenges in its implementation with Indonesian characteristics.

Roy Andy Panjaitan from GIZ 3RproMar Indonesia emphasized the importance of policy enforcement, saying, “We need stringent policy enforcement to ensure producers comply with waste reduction plans and contribute effectively to managing plastic pollution.”

During the FGD, presentations highlighted the background and development of Ministerial Regulation LHK No. 75/2019, focusing on producers’ perspectives on EPR policies within the business environment. Keynote speakers, including government officials, experts, and industry leaders, underscored the importance of shifting responsibility from downstream to upstream, incentivizing producers to incorporate environmental considerations into product design, and ensuring financial and operational responsibility for waste management shifts from the government to producers​​​​.