Indonesia is preparing to introduce a major change to the way packaging waste is managed by shifting more responsibility to manufacturers. Under a new government policy, producers will be required to help finance the collection and management of waste generated by the products they place on the market through a mechanism known as the Packaging Recovery Organization (PRO).
The waste management initiative in Indonesia is being introduced by the Ministry of Environment and the Environmental Control Agency (KLH/BPLH). This shift is a part of the government’s effort to strengthen the implementation of Extended Producer Responsibility (EPR). The policy reinforces the principle that producers should remain responsible for the environmental impact of their packaging, as mandated under Law No. 18 of 2008 on Waste Management.
The new waste management requirement will be formalized through a Ministerial Regulation on Extended Producer Responsibility in Indonesia. Once implemented, approximately 10,000 large manufacturing companies that use plastic packaging will be required to allocate dedicated funding. Those financial contributions will be directed to organizations responsible for managing waste at the community level.
Minister of Environment and Head of the Environmental Control Agency Moh Jumhur Hidayat said discussions with major manufacturers have already produced a positive response, with companies expressing their readiness to participate in the new system.
“I have met with major manufacturers whose products use plastic packaging. They have all said they are ready,” Jumhur said while inspecting a river area during the Kali Sabi Festival 2026, according to a press release issued on Sunday (December 16, 2026).
Beyond improving waste management, the government expects the Packaging Recovery Organization to generate broader environmental and economic benefits. Jumhur explained that the program is also designed to create new employment opportunities through green jobs while allowing communities to play a more active role in environmental protection.
He emphasized that the government will function only as the regulator and supervisor of the program. Operational funding and management of the organizations will remain independent, ensuring that public authorities oversee implementation without directly controlling the financial resources.
“The organization will be called the Packaging Recovery Organization (PRO). It can be established, for example, in Tangerang. Communities are welcome to create this kind of organization, and funding will be provided. The budget will not be small but quite substantial, coming from those producers. Activities carried out by PRO will create green jobs,” he said.
According to Jumhur, the funding collected through the PRO scheme will support a wide range of environmental programs carried out by local communities. Rather than focusing solely on waste collection, the organizations will be able to finance educational campaigns, public awareness initiatives, and environmental restoration projects.
He said the funds could be used for activities similar to those showcased during the Kali Sabi Festival 2026. Community organizations would be able to organize door-to-door outreach programs reminding residents not to dispose of waste improperly, while also supporting downstream environmental activities, including river conservation and cleanup efforts.
“In the future, PRO will help fund community environmental activities such as the Kali Sabi Festival 2026. The PRO budget can be used for activities ranging from door-to-door campaigns reminding residents not to litter to downstream activities such as cleaning and managing rivers,” he explained.
The government believes the new Packaging Recovery Organization scheme will not only strengthen Indonesia’s waste management system but also encourage greater producer accountability while creating sustainable economic opportunities through community-based environmental initiatives.
