Abundant Plastic Waste, Indonesian Recycling Industry Still Imports Raw Materials

Third, the implementation of extended producer responsibility (EPR) is still voluntary and has not yet become an obligation accompanied by strict supervision and sanctions.

EPR requires producers to be responsible for the environmental impact of the products and packaging they produce, including after the product is used by the public.

KLH/Environmental Management Agency (BPLH) encourages EPR obligations to be clearly separated from the company's Social and Environmental Responsibility (TJSL) program. This separation is necessary to maintain transparency and ensure that producer responsibility does not stop at voluntary social activities.

Scavengers Supply 85 Percent Recycled Raw Materials

In the midst of these various limitations, the informal sector has become the main support for the Indonesian recycling industry.

Scavengers, collectors and waste banks are said to supply around 85 percent of the raw materials needed by the recycling industry. However, the majority of workers in the waste collection chain have not received business legality, social protection or adequate work standards.

The economic value of the plastic waste management chain also continues to increase at each processing stage. The value is estimated to reach around IDR 3 trillion in the initial collection stage.

After the waste is sorted, its value increases to around IDR 5.8 trillion. The economic value soared again to around IDR 10.9 trillion after the material was processed by industry.