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Waste management poses a mounting challenge in Indonesia as growing household consumption and accelerated business activity gives rise to higher volumes of organic food waste, plastic packaging and industrial byproducts. To address this increasingly severe waste problem characterized by a near trebling of the country’s production of municipal solid waste from 0.8 kg per capita to 2.1 kg per capita over the past decade (UNCRD); the Indonesian government has sought to impose stricter waste management and recycling regulations. Most recently, the Ministry of Environment in cooperation with the Ministry of Industry announced its plans to issue a ministerial mandate that better defines the different types of hazardous waste and puts in place easily understood penalties for non-compliance.
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Following on from the previous implementation of laws designed to encourage recycling and other waste limiting practices; the upcoming legislation is indicative of growing momentum in Indonesia to tackle its present shortcomings in waste management infrastructure and facilities. Amid this stricter regulatory climate and increasing demand for comprehensive waste disposal services, foreign investors are presented with new opportunities in Indonesia to enter the waste management and recycling sector.
The upcoming regulation will also obligate companies to provide a guarantee of their compliance to the government in the form of a bank deposit that would be used to mitigate pollution if a company’s waste management system fails to meet environmental standards. The decision to impose more tangible consequences for companies that fail to abide by waste management guidelines is the latest in a growing list of laws put forward by the Indonesian government to combat the effects of a waste production rate rising by 2-4% annually (World Bank). Notable directives include Law No.18/2008, which is aimed at implementing the ‘3Rs’ of reduce, reuse and recycle by requiring homeowners to segregate their waste at the source as well as setting out steps for formal waste handling, and Law No. 32/2009, which requires companies to issue an Environmental Management Statement and have an Environmental Audit as a precondition for other business permits.
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A more targeted approach to the composting industry can entail engaging in nappy composting; an area of waste management that holds significant potential in Indonesia given the high birth rate and increasing preference towards disposable nappies among the urbanised middle class (See ). With 4.7 million births per year (National Family Planning Coordinating Board), Indonesia’s fast growing population is making the waste management and recycling issue all the more pressing. Nappy composting has proved to be highly effective in New Zealand and the United Kingdom, and should have similar success in Indonesia given the implementation of active consumer education programs and facilities such as clearly marked disposal areas.
Less constrained by land limitations than Singapore, Indonesia also presents opportunities in a composting industry now more attractive due to an increasing awareness amongst the general public of the need to separate organic from inorganic waste. Initiatives from local governments and private sector players such as Unilever Indonesia to introduce the concept of waste banks -- in which households separate their waste into different containers and then deposit non-organic solid waste at a collection point in their neighborhood in exchange for money that can be kept in an account at the waste bank or withdrawn – have had a substantial impact across the country in educating consumers and changing their behavior. Over 14,000 kg of inorganic waste was collected by local communities in Greater Jakarta less than a year after Unilever Indonesia’s program set up 10 waste banks in the area. This movement also leads to the creation of centralized recycling and collection points that build towards the basic infrastructure needed for lucrative composting business opportunities in Indonesia.
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Indonesia’s Waste Management & Recycling Industry | …
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A collaboration of School of Architecture faculty and students, representatives of the UVA Foundation, and UVa. Facilities Management are participating in cost and feasibility studies, toward the implementation of these designs at Morven.
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Despite what is now becoming a legal landscape conducive to the success of companies in the waste management and recycling sector, challenges brought about by Indonesia’s informal sector continue to dampen the potential of this industry. Business reliant upon the growing supply of waste products must contend with the prevalence of scavengers who depend on collecting, sorting and selling waste for their income. Efforts to educate consumers about the advantages of commercial scale waste management and recycling are often met with opposition from communities unwilling to jeopardize the livelihood of scavengers.
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The involvement of the informal sector is not limited to household waste. Reports from within the medical sector suggest that it is a common occurrence for a health clinic’s support staff to sell used medical equipment such as needles to scavengers as opposed to disposing of them through licensed waste management companies. With the recent implementation of a universal healthcare program, the magnitude of opportunities lost to Indonesia’s waste management and recycling sector due to scavengers stands to grow unless steps are taken to lessen the informal sector’s role.
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The most effective method in achieving this goal is the integration of scavengers into the formal sector through training and social empowerment programs. Whether through the state or private sector, this type of initiative is sorely needed to complement the broader goal of educating households, businesses and industries on their environmental obligations. Danone, the multinational producers of Indonesia’s leading bottled water brand Aqua, have demonstrated the feasibility of working with scavengers by founding recycling cooperatives in South Tangerang, Bandung and Bali. Through these projects, Danone has been able to create stable employment opportunities and provide access to social services and micro financing to approximately 5,000 scavengers; thereby lowering their dependence on informal waste collection.
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In addition, designs for a community bathhouse adjacent to the barn provide not only a facility that utilizes local materials and construction with ecologically-focused prefabricated elements including composting toilets, waste filtration and energy. Beyond its implementation at Morven, this design research for a self-contained bathing facility offers the potential for serving humanitarian situations, especially in developing areas with limited access to clean water and sanitary toilets, underserved communities and disaster sites as well as at other places on the economic spectrum, such as remote research stations, national parks and youth hostels.
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