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The Emerging Potential of the Waste Management Sector in Indonesia

Despite the unprecedented socio-economic turbulence caused by the COVID-19 pandemic during the period since early-2020, the Waste Management sector in Indonesia is continuing to build capacity as the Government seeks a) to intensify the fight against plastic pollution, b) to develop a sustainable recycling industry, and c) to work towards the nationwide goal of cutting aggregate waste volumes.

In particular, the Indonesian Government is aiming to provide better support for the recycling industry through various measures, such as promoting the use of recycled plastic products, increasing recycling rates, improving the recyclability of goods and plastic packaging, and making recycled content mandatory in certain plastic products.

Furthermore, the Government has identified the potential to adopt Circular Economy practices in five key sectors - Food and Beverage; Textiles; Construction; Wholesale and Retail Trade; and Electrical and Electronic Equipment.

A Circular Economy not only offers the opportunity for Indonesia to reduce waste and improve the environment but also to increase economic performance through a boost to Gross Domestic Product (GDP) by between IDR 593 to 638 trillion (USD 42 to 45 billion) in 2030.

This creates a potential uplift of around 5% of estimated GDP in 2030, which will in turn propel Indonesia to become the 4th largest economy in the world.

By creating new job prospects, making supply chains more resilient, and providing business opportunities - particularly for the strategically-important Micro, Small, and Medium Enterprises sector - a Circular Economy holds the promise of being a key driver for Indonesia’s overall economic prosperity.

In this latest Wellington Perspective, we examine the critical elements of the rapidly-evolving Waste Management sector in Indonesia – key metrics, stakeholder community, regulatory environment; global brand players; electronic waste category, and early-stage investment activity.

If you would like to engage in an open dialogue on any aspect of the Waste Management investment opportunities in Indonesia, please feel free to contact us.

Wellington Perspective - Potential of Waste Management Sector in Indonesia
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