JAKARTA – The Ministry of National Development Planning/Bappenas and the Global Green Growth Institute (GGGI) are working together to accelerate the development of a sustainable plastic value chain as part of the implementation of the Circular Economy Roadmap contained in the 2025-2029 National Medium-Term Development Plan (RPJMN), as well as supporting the agenda for green and climate-resilient economic transformation.

Secretary of the Ministry of National Development Planning/Principal Secretary of Bappenas Teni Widuriyanti explained that Indonesia produces 5.5 million tons of plastic waste per year, but only 22 percent is successfully collected for recycling. “The utilization rate of the recycling industry is still far from optimal, with only about 40 percent of capacity in operation, so stronger investment is needed in infrastructure, technology, bioplastic research, and fiscal and non-fiscal incentives,” explained Sesmen Teni in the Business Matchmaking Program: Policy Dialogue and Launch of the Call for Proposals (CfP) Plastics Circular Investment Initiative in Jakarta, Wednesday (3/12).

The strategic partnership between the Ministry of National Development Planning/Bappenas and GGGI for more than a decade in green growth has helped expand the path of green development and support Indonesia’s leadership towards a simpler and more sustainable economy. GGGI Deputy Country Representative Vidya Fauzianti emphasized that PCII is designed to address structural challenges in the plastic value chain, ranging from raw material instability to market fragmentation. Collaboration among all stakeholders is needed to accelerate these transition efforts through a Call for Proposals that is open to all players in the recycled plastic and bioplastic sectors.

The initiative aims to strengthen key segments in the value chain that can open up concrete investment opportunities, thereby enabling the development of projects that are ready for financing. PCII has three main components to strengthen investment channels, namely landscape analysis, business matchmaking, and technical assessment. “This project is designed to address various gaps while identifying opportunities, ensuring that international expertise can truly support Indonesia’s local priorities,” explained Vidya.

Through this policy dialogue forum, the Ministry of National Development Planning/Bappenas and GGGI reaffirmed their joint commitment to accelerating the transformation of Indonesia’s plastics sector through stronger regulations, cleaner technologies, and closer international collaboration. Cross-stakeholder synergy is key to building a competitive sustainable plastics industry that supports global climate commitments. “We hope that today’s policy dialogue and business matchmaking can be part of our efforts to strengthen our communication and bring about tangible policies or projects that can become part of Indonesia’s circular economy,” concluded Deputy Minister Teni.

For more information on the submission requirements and process for the Plastics Circular Investment Initiative Call for Proposals, please visit the link here.

Jakarta, December 3, 2025

Ardian Budhi Nugroho

Head of Public Relations, Archives, and Executive Administration Bureau

Ministry of National Development Planning/Bappenas