The challenge
Our planet"s resources are limited, and environmental pollution is on the rise.
The OECD projects that plastics and packaging consumption will nearly
double by 2050, underscoring the urgent need to transition from a linear
"take-make-dispose" economy to a circular one. Our predominant linear
model depletes finite resources, generates escalating waste volumes, and
strains ecosystems, with only 9% of plastic waste globally being recycled as
per UNEP reports. A circular economy (CE), on the other hand, emphasises
on resource efficiency through reuse, recycling, and recovery, offers a
sustainable alternative to mitigate environmental degradation and optimise
material lifecycles.
In Indonesia, where local governments struggle with providing waste
management services and infrastructure that needs to keep pace with rapid
urbanisation and consumption growth, adopting circular principles is critical to
addressing mounting environmental and economic challenges. Extended
Producer Responsibility (EPR) is pivotal in operationalising a circular
economy by enforcing the Polluter Pays Principle (PPP), compelling
producers to internalise the costs of managing their products" end-of-life
waste. By implementing a dual system for packaging and other waste
streams, EPR shifts the financial burden from overburdened municipal
budgets to producers, incentivising eco-design and efficient waste
management.
In Indonesia, where inadequate financing hampers effective waste collection
and processing, resulting in over 60% of plastic waste being mismanaged
(World Bank, 2021), EPR offers a mechanism to secure sustainable funding
and enhance operational capacity, ensuring that waste is managed
responsibly and diverted from landfills, rivers, and oceans.
Our approach
InCircular supports the implementation of Indonesia"s Circular Economy
Roadmap and National Action Plan 2025-2045 (Bappenas, 2024) which
emphasises circularity for key sectors to address climate change, biodiversity
loss, pollution, and enhancing resource efficiency. By fostering multi
stakeholder collaboration among government, private sector, and civil society
to develop EPR frameworks, the project supports the Indonesian
government"s objective of creating inclusive, evidence-based policies that
strengthen economic resilience and sustainable resource management.
InCircular aims to unite a diverse coalition of stakholders to jointly develop
strategies, policies, and an operating system that fit to the Indonesian context.
By fostering stakeholder dialogue and leveraging German and global best
practices, the project seeks to deliver actionable policy recommendations to
the Indonesian government, paving the way for systemic change in waste
management financing and operations while promoting a circular economy
that benefits both the environment and society. InCircular works towards 5 outputs:
1. Support the coordination of the implementation of the Circular
Economy Roadmap and Action Plan;
2. Enhance regulatory frameworks for EPR and selected material
streams (packaging, residual waste, e-waste);
3. Strengthen collaboration with industry partners for the transition to a
Circular Economy;
4. Improve waste management in selected provinces and
municipalities;
5. Advance Green/Sustainable Public Procurement (G/SPP) for
selected goods.
The benefits
InCircular will address crucial challenges in policymaking to make polluters
pay. Thereby, it creates a new income stream to further transform waste
management financing on local and national level which would enhance
economic growth and activities in a systemically underfunded sector. This will
alleviate public budgets, reduce pollution and create economic opportunities
within material value chains.