What Is Indonesia's Extended Producer Responsibility Framework?

Extended Producer Responsibility (EPR) shifts waste management responsibility from municipalities to the businesses that produce, distribute, and sell packaged consumer goods. In Indonesia, this framework was established through PP 81/2012 and operationalized by PERMENLHK 75/2019, which set a 30% producer waste reduction target by 2029. This article examines the legal foundation, target structure, producer categories, and obligations that define Indonesia's EPR system.

Legal Foundation: From Law to Implementation

Indonesia's EPR framework originates from UU 18/2008 Pasal 15, which established producer obligations in waste management. The Law mandates that "producers are obligated to manage packaging and/or products that produce waste" through waste limitation, recycling, and reuse.

PP 81/2012 provided the detailed implementation framework. Pasal 12 and 13 establish two core producer obligations: waste limitation and recycling. Pasal 15 mandated that EPR implementation occur in 10-year stages through a "peta jalan" (roadmap) regulated by the Minister of Environment.

Pasal 15 of PP 81/2012:

"Penggunaan bahan baku produksi dan kemasan yang dapat diurai oleh proses alam, yang menimbulkan sesedikit mungkin sampah, dan yang dapat didaur ulang dan/atau diguna ulang sebagaimana dimaksud dalam Pasal 12 sampai dengan Pasal 14 dilakukan secara bertahap persepuluh tahun melalui peta jalan."

This provision established the legal mandate for staged implementation over 10-year periods. PERMENLHK 75/2019 fulfilled this requirement by creating the first EPR roadmap covering 2020-2029.

The 30% Reduction Target by 2029

PERMENLHK 75/2019 Pasal 2 establishes the core quantitative target for Indonesia's EPR system:

"(1) Peraturan Menteri ini mengatur tentang Peta Jalan pengurangan Sampah oleh Produsen periode tahun 2020 sampai dengan tahun 2029.

(2) Peta jalan sebagaimana dimaksud pada ayat (1) dilaksanakan untuk mencapai target pengurangan sampah oleh Produsen sebesar 30% (tiga puluh persen) dibandingkan dengan jumlah timbulan Sampah di tahun 2029."

Translation: The Ministerial Regulation governs the Producer Waste Reduction Roadmap for the period 2020 to 2029, implemented to achieve a producer waste reduction target of 30% (thirty percent) compared to waste generation levels by 2029.

This 30% target represents the reduction producers must achieve relative to a baseline. The baseline is defined in PERMENLHK 75/2019 Pasal 1(10) as "Baseline Timbulan Sampah" - waste generation figures compiled based on level, status, trend, and projections over a specific time period, used as a comparison factor for waste reduction achievements.

The target structure follows this logic:

1. Baseline Establishment: Each producer category establishes waste generation baselines using standardized methodologies
2. Annual Staging: Reduction targets increase incrementally across the 10-year roadmap period
3. 2029 Target: By the final year, producers must achieve 30% reduction compared to baseline levels
4. Measurement: Progress is measured through mandatory annual reporting to environmental authorities

The 30% target aligns with Indonesia's broader waste reduction goals established in PERPRES 97/2017, which set national targets of 30% waste reduction and 70% waste handling by 2025.

Three Producer Categories

PERMENLHK 75/2019 Pasal 3 defines which business actors are subject to EPR obligations:

"(1) Produsen sebagaimana dimaksud dalam Pasal 2 meliputi pelaku usaha dan/atau kegiatan di bidang:
a. manufaktur;
b. jasa makanan dan minuman; dan
c. ritel."

Translation: Producers as referred to in Article 2 include business actors and/or activities in: (a) manufacturing; (b) food and beverage services; and (c) retail.

Category 1: Manufacturing

The manufacturing sector includes three subsectors:

Pasal 3(2):

"Bidang manufaktur sebagaimana dimaksud pada ayat (1) huruf a meliputi:
a. industri makanan dan minuman;
b. industri barang konsumsi (consumer goods); dan
c. industri kosmetik dan perawatan tubuh (personal care)."

This category covers producers who create the original packaged products. Manufacturing obligations focus on packaging design, material selection, and production processes that minimize waste generation.

Category 2: Food and Beverage Services

Pasal 3(3):

"Bidang jasa makanan dan minuman sebagaimana dimaksud pada ayat (1) huruf b meliputi:
a. rumah makan; b. kafe; c. restoran; d. jasa boga; dan e. hotel."

This category extends EPR obligations to the hospitality and food service industry. These businesses generate substantial packaging waste through takeout services, single-use containers, and food service operations.

Category 3: Retail

Pasal 3(4):

"Bidang ritel sebagaimana dimaksud pada ayat (1) huruf c meliputi:
a. Pusat Perbelanjaan;
b. Toko Modern; dan
c. Pasar Rakyat."

Retail includes shopping centers, modern stores (minimarkets, supermarkets, department stores, hypermarkets), and traditional markets. Retail EPR obligations focus on shopping bags, packaging provided at point-of-sale, and waste generated within retail premises.

Four Priority Waste Materials

PERMENLHK 75/2019 Pasal 4 identifies target materials for EPR focus:

"(2) Produk, kemasan produk, dan/atau wadah sebagaimana dimaksud pada ayat (1) meliputi:
a. plastik;
b. kaleng alumunium;
c. kaca; dan
d. kertas."

Translation: Products, product packaging, and/or containers as referred to in paragraph (1) include: (a) plastic; (b) aluminum cans; (c) glass; and (d) paper.

These four materials were selected based on several criteria:

1. Volume: These materials constitute the majority of packaging waste in Indonesia
2. Environmental persistence: Plastic and aluminum do not decompose naturally
3. Recycling potential: All four materials have established recycling value chains
4. Economic value: Recyclable materials support waste picker livelihoods and recycling industries

The focus on these materials allows producers to concentrate reduction efforts on high-impact waste streams while supporting Indonesia's existing informal recycling sector.

Producer Obligation 1: Waste Limitation

PP 81/2012 Pasal 12 establishes the first core EPR obligation:

"Produsen wajib melakukan pembatasan timbulan sampah dengan:
a. menyusun rencana dan/atau program pembatasan timbulan sampah sebagai bagian dari usaha dan/atau kegiatannya; dan/atau
b. menghasilkan produk dengan menggunakan kemasan yang mudah diurai oleh proses alam dan yang menimbulkan sampah sesedikit mungkin."

Translation: Producers are obligated to limit waste generation by: (a) preparing plans and/or programs for waste generation limitation as part of their business and/or activities; and/or (b) producing products using packaging that is easily decomposed by natural processes and generates minimum waste.

This provision requires producers to:

1. Develop waste limitation plans: Create documented strategies for reducing waste generation across operations
2. Integrate into business operations: Make waste limitation a core business function, not an external compliance activity
3. Use biodegradable packaging: Where technically feasible, select packaging materials that decompose naturally
4. Minimize packaging waste: Design packaging systems that generate the least possible waste

Waste limitation is implemented through several mechanisms:

• Lightweighting: Reducing material usage per packaging unit (e.g., thinner plastic bottles, lighter glass)
• Design optimization: Eliminating unnecessary packaging layers or components
• Material substitution: Replacing non-biodegradable materials with biodegradable alternatives where performance allows
• Source reduction: Reducing packaging at the manufacturing stage before products enter distribution

Producer Obligation 2: Recycling and Take-Back

PP 81/2012 Pasal 13 establishes the second core EPR obligation:

"(1) Produsen wajib melakukan pendauran ulang sampah dengan:
a. menyusun program pendauran ulang sampah sebagai bagian dari usaha dan/atau kegiatannya;
b. menggunakan bahan baku produksi yang dapat didaur ulang; dan/atau
c. menarik kembali sampah dari produk dan kemasan produk untuk didaur ulang."

Translation: Producers are obligated to recycle waste by: (a) preparing waste recycling programs as part of their business and/or activities; (b) using recyclable raw materials for production; and/or (c) taking back waste from products and product packaging for recycling.

Recycling Program Requirements

Paragraph 1(a) requires producers to establish formal recycling programs. These programs must be documented, budgeted, and reported to environmental authorities as part of EPR compliance.

Recyclable Raw Materials

Paragraph 1(b) creates a "design for recyclability" mandate. Producers must select materials that can be effectively recycled using existing infrastructure. This includes:

• Using mono-material packaging rather than multi-layer composites
• Avoiding materials that contaminate recycling streams
• Selecting materials with established recycling markets in Indonesia

Take-Back Schemes

Paragraph 1(c) introduces "menarik kembali" (take back) requirements - producers must establish systems to recover packaging waste after consumer use for recycling. This is the legal foundation for deposit-refund systems, collection point networks, and producer-funded recycling infrastructure.

Third-Party Implementation

PP 81/2012 Pasal 13(2) allows producers to delegate recycling obligations:

"(2) Dalam melakukan pendauran ulang sampah sebagaimana dimaksud pada ayat (1), produsen dapat menunjuk pihak lain."

Producers may designate third parties (waste management companies, recycling firms, cooperatives) to implement recycling programs on their behalf. However, producers retain ultimate responsibility for compliance.

Baseline Methodology and Progress Measurement

PERMENLHK 75/2019 introduces the "Baseline Timbulan Sampah" methodology for measuring EPR progress. This baseline approach works as follows:

1. Initial Assessment: Producers conduct waste audits to establish baseline waste generation levels
2. Projection Modeling: Baseline incorporates growth projections (business expansion, increased sales volume)
3. Target Setting: 30% reduction target is calculated relative to projected baseline
4. Annual Reporting: Producers report actual waste generation annually, demonstrating progress toward targets
5. Verification: Environmental authorities verify reported data through audits and third-party assessments

This baseline approach differs from absolute reduction targets. Producers must reduce waste generation intensity relative to business growth, not necessarily achieve absolute volume reductions. A producer that doubles sales volume but reduces packaging per unit by 30% meets the target.

The baseline methodology provides flexibility for growing businesses while ensuring genuine waste reduction progress. It focuses on operational efficiency and packaging optimization rather than penalizing business expansion.

Implementation Timeline and Reporting

PERMENLHK 75/2019 establishes a staged implementation timeline from 2020 to 2029. While the regulation sets the 30% endpoint target, annual incremental targets are specified in Annex I of the regulation. Producers must:

1. Establish baselines: Complete waste generation assessments by specified deadlines
2. Submit annual reports: Report waste generation, reduction activities, and progress toward targets
3. Implement reduction programs: Execute waste limitation and recycling programs throughout the roadmap period
4. Demonstrate compliance: Provide documentation and verification of reduction achievements

Environmental authorities review annual reports and may conduct site inspections to verify compliance. Producers failing to meet incremental targets may face administrative sanctions under UU 18/2008.

Conclusion

Indonesia's EPR framework establishes comprehensive producer obligations for waste reduction through PERMENLHK 75/2019 and PP 81/2012. The 30% reduction target by 2029 applies to three producer categories (manufacturing, food and beverage services, and retail) across four priority materials (plastic, aluminum, glass, and paper).

Producers must fulfill two core obligations: waste limitation through business planning and sustainable packaging design, and recycling through take-back schemes and recyclable material use. The baseline methodology provides a structured approach to measuring progress while accommodating business growth.

The roadmap's success depends on effective implementation of waste limitation programs, development of take-back infrastructure, and robust monitoring and verification systems to ensure producers meet reduction commitments over the 10-year implementation period.

Legal Basis:

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