Indonesia's Growing Waste Presents Opportunities for a Circular Economy

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Adi Ahdiat 02/09/2025 16:50 WIB

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Indonesia's municipal waste generation is projected to continue increasing in the coming years. This increase in waste presents an opportunity for a circular economy.

Projected Waste Volume in 5 Priority Sectors of Indonesia's Circular Economy (2019-2030)

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Projected Waste Volume in 5 Priority Sectors of Indonesia's Circular Economy (2019-2030)

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Indonesia's waste generation is projected to increase significantly in the coming years. While this poses a significant environmental threat, it also presents an opportunity for a circular economy.

This is highlighted in a report, Economic, Social, and Environmental Benefits of a Circular Economy in Indonesia, released by the Indonesian Ministry of National Development Planning (PPN).

A circular economy minimizes resource use, maximizes product lifespan, and returns waste materials from production and consumption back into the value chain.

According to the PPN Ministry, five Indonesian sectors have significant potential for implementing a circular economy model:

Food and beverage;
Construction;
Wholesale/retail trade using plastic packaging;
Textile; and
Electrical/electronic equipment.

"Current practices in these sectors are inefficient and generate a large amount of waste," stated the PPN Ministry in its report.

The PPN Ministry estimates that Indonesia's food and beverage sector generated 57.4 million tons of waste in 2019. This is projected to increase to 88.6 million tons by 2030.

Increased waste from consumption and production processes is also expected in the construction, plastic packaging trade, textile, and electronics sectors, as shown in the graph.

However, the implementation of a circular economy model could significantly reduce waste in these sectors:

Food and beverage: 50% waste reduction (compared to the 2030 projection)
Construction: 5% waste reduction
Wholesale/retail trade using plastic packaging: 21% waste reduction
Textile: 14% waste reduction
Electrical/electronic equipment: 13% waste reduction

The PPN Ministry also estimates that circular waste management in these sectors could boost the national economy.

"The transition to a circular economy could increase Indonesia's Gross Domestic Product (GDP) by Rp593 trillion to Rp638 trillion by 2030," they stated.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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