On July 12, 2026, Indonesia’s Ministry of Environment/Environmental Control Agency announced it will soon implement a new scheme requiring producers to finance the management of waste from their product packaging. This strategic policy dictates that corporations utilizing plastic packaging, must bear the financial responsibility for managing the waste generated by their products to support a circular economy.
Mandatory Waste Funding: Companies will be required to channel specific budgets for waste management through the Packaging Recovery Organization (PRO) mechanism.
New EPR Regulation: This mandatory financial allocation will be officially regulated under the Regulation of the Minister of Environment concerning Extended Producer Responsibility (EPR).
Target Scope: Approximately 10,000 large-scale factories and producers using plastic in Indonesia will be obligated to allocate these funds, which will be distributed to grassroots waste management institutions to create green jobs.
