JAKARTA, INDONESIA, SEPTEMBER 30, 2025 –The Ministry of National Development Planning (BAPPENAS) and the Global Green Growth Institute (GGGI hosted an Interim Workshop to present the preliminary findings of a landscape analysis to accelerate the establishment of a sustainable plastic value chain in Indonesia. This analysis aims to formulate policy recommendations and identify relevant investment opportunities. The workshop ensured the data and subsequent investment pipeline are robust and aligned with market realities by validating the supply-demand analysis for recycled plastics and bioplastics.

This workshop showcased key progress of GGGI’s ongoing Plastics Circular Investment Initiative (PCII), which focuses on recycled plastics and bioplastics. PCII is aligned with Indonesia’s 2025-2045 Circular Economy Roadmap and Action Plan, which prioritizes the plastics sector, especially plastic packaging. With the underutilization of national recycling industry capacity, raw material shortages for recycling plants and insufficient waste collection systems, PCII aims to transform Indonesia’s linear plastics system into a sustainable and fair circular economy model.

Extended Producer Responsibility (EPR) is one of the frameworks to address such transformation by holding producers responsible for the entire lifecycle of their products, especially for the post-consumer stage such as waste collection, recycling, and disposal. PCII supports the government’s efforts to implement the EPR scheme through the Producer Waste Reduction Roadmap initiated by the Ministry of Environment.

“By focusing on investment in high-value recycled plastic and bioplastics, we are accelerating the achievement of our circularity targets and ensuring a sustainable future,” asserted Mr. Nizhar Marizi, Director of Environmental Affairs, BAPPENAS, on his opening remarks.

The moderated discussions featured participation from a diverse and comprehensive group of stakeholders. Attendees included representatives from key government bodies such as BAPPENAS, the Ministry of Environment, the Ministry of Industry, the Ministry of Home Affairs, and the National Standardization Agency, alongside representatives from plastic recycling associations, the packaging association, and bioplastic manufacturers. Their insights and feedback were critical in providing a sharper, evidence-based review of the initial landscape analysis, ensuring the identified value chain gaps and investment designs reflect ground-level insights and align with regulatory and industrial strategies.

“Mr. Agus Rusly, Director of Waste Reduction and Circular Economy Development, Ministry of Environment (MOE), highlighted the ongoing regulatory alignment: “MOE is currently consolidating Presidential Regulations No. 97/2017 and No. 83/2018 into a single, comprehensive regulation to strengthen the waste management and EPR framework. This regulatory update, along with our focus on improving the quality of plastic feedstock from waste banks and processing facilities, is vital to ensure that the domestic supply chain meets the high-quality standards required by the recycling industry.”

“When appropriate fiscal policies are in place and aligned across all relevant Ministries, the private sector will naturally pursue high-value opportunities, such as meeting the premium buyers’ demand for high-quality recycled plastic products, without needing constant external pushes,” shared Ibu Tri Ligayanti, Director of Downstream Chemical and Pharmaceutical Industry, Ministry of Industry, during the discussion session.

Following the workshop, the PCII team will integrate the feedback received to finalize the technical landscape study. “We hope this landscape analysis will guide the next step: business matchmaking. By mobilizing investment and fostering international partnerships, we’re laying the groundwork for scalable, sustainable solutions that strengthen our circular economy,” said Yorkie Sutaryo, GGGI Officer for Circular Economy

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