Deep dive inside the waste management industry in Indonesia.
Sustainability has been trending ever since the rise of climate change awareness started. The fact that this year’s Olympics make an effort to be sustainable is evidence of how seriously people care about the environment. With that topic, comes the talk of the management of waste.
Industrial waste is waste generated during the manufacturing process in a variety of sectors. Given that Indonesia is a developed country with numerous enterprises, it is unsurprising that environmental degradation happens frequently.
Tokyo Olympics Awareness of Waste
The Tokyo Olympics present an interesting scenario in terms of the local populace. After all, the COVID-19 pandemic is raging at the time of these games. Running, swimming, jumping, twisting, and other athletic feats will take place without the presence of spectators. Not only that, but this year’s Olympic and Paralympic gold, silver, and bronze medals were made from recycled small electrical gadgets like cell phones.
The Tokyo 2020 Medal Project collected 78,985 tons of electronic gadgets from around Japan over two years, including 6.21 million cell phones, to create the 5,000 Olympic medals that will be given in Tokyo. Smelting was used to obtain the gold, silver, and bronze components of the devices. Smelting is a technique that requires heating and melting to extract a base metal.
The recycled Olympic medals are part of a bigger initiative at the Tokyo Games to promote sustainability. This is all due to the masses ‘ awareness of climate change and the overload of waste.
Overview of Waste Industry in Indonesia
As of April 2020, according to data from the Ministry of Environment and Forestry of Indonesia, only 14 enterprises are processing B3 garbage, also known as Hazardous and Toxic Materials. The companies are dispersed across six provinces, with West Java having the most, which is seven.
However, according to EKONID (The German-Indonesian Chamber of Industry and Commerce), Indonesia’s waste management capacity continues to rise in Indonesia. In June, EKONID will conduct a Digital Trade Mission on waste management to help keep the momentum going. The official concession to design, build, and operate the 1,800-tpd Regional Waste Management and Final Processing Site (TPPAS) in Nambo, West Java, was made on March 23, 2021, to EUWELLE Environmental Technology GmbH, a subsidiary of China-based Welle Environmental Group.
The above is just an example of how Indonesia’s waste management capability is increasing. Also, according to the Ministry of Environment and Forestry of Indonesia (KLHK), Indonesia can only reduce, reuse, and recycle 14.58% of its trash in 2019, while 34.60% is managed (dumped in landfills or burnt), bringing the national waste management to 49.18%. By 2020, this had risen to 16.23% in waste reduction and 34.60% in waste management, bringing the total to 54.15%. Indonesia wants at least 30% of all trash to be reduced, reused, or repurposed by 2025, with the remaining 70% managed.
The Prospects of Waste Management Industry Business in Indonesia
Southeast Asia as one of the regions of the Asian continent that contains many developing countries certainly has a problem of waste that cannot be solved quickly. The waste donated by Southeast Asia major cities is called municipal solid waste (MSW). According to research from the United Nations, the total MSW produced in Southeast Asia is 141,208,888 tons annually. The top three rankings are from Indonesia, Thailand, and Vietnam. Indonesia ranked first with the amount of MSW reaching 64 million tons. No wonder Indonesia is the country with the most population in Southeast Asia.
The amount of garbage in Southeast Asia is not only from the population. Many developed countries export their recycling to developing nations, where low-wage workers sort the trash, such as countries in Southeast Asia. This increases the amount of waste in developing countries that continue to increase. 75% of globally exported waste ends up in Asia. But since July 2017 — when China began to ban imports of plastic waste — Southeast Asia, in particular, has become a dumping ground for wealthier countries’ waste. After China’s ban, the amount of plastic waste imported to countries like the Philippines, Malaysia, and Indonesia more than doubled.
As the amount of foreign waste accumulates and resentment grows among local populations, Southeast Asian governments are beginning to refuse to act as the world’s dumpsite. Both Malaysia and the Philippines recently announced plans to return waste from Western countries that had improper labeling. However, in contrast to the two countries, Indonesia still permits the importation of plastic waste to support industrial operations. Statistics reveal that the amount of plastic waste and scrap the country imported in 2018 jumped by 141%. This is what makes Indonesia a country that has a very large amount of waste.
The abundant amount of waste certainly makes Indonesia have to prepare a lot of waste management industry and have good quality. Indonesia has opened a wide door for investors who want to help Indonesia to build a waste management industry. Several companies and organizations from abroad and locally manage waste in Indonesia. First, Waste4Change, a company that provides transport, sorting, and waste processing services. Second, Mall Sampah, a company that cooperates with Coca-Cola, provides waste management services online. Third, Gringo offers garbage collection services to various companies in exchange for money. These three companies are examples of the many waste management companies in Indonesia.
Waste Management Industry Companies in Indonesia
In managing waste, of course, you need some adequate equipment. So, waste management companies certainly need a lot of industries that make tools to process waste. Here are 3 companies from many foreign companies that produce these tools:
1. Maxiton Engineering Asia Pte Ltd
This Singapore-origin company was formed in 2018 and aims to be an integrated solution provider for the Waste Handling Equipment (WME) Industry. Maxiton Engineering Asia has several services, namely repair, servicing, and maintenance of industrial waste equipment. Maxiton Engineering Asia Pte Ltd offers standard, pre-engineered products to provide efficient and cost-effective solutions. These waste management products are made after vigorous R&D, continuous improvement, and innovation.
2. Delitek AS
Delitek AS is a leading manufacturer of stainless steel waste management systems for the demanding maritime and offshore industry with its production in Norway. Delitek has delivered their systems to the maritime and offshore industry since 1992 and have since then continuously developed the technology further to meet customer demands. The “Green ship” product range consists of DnV approved compactors, shredders, crushers, balers, and so forth, which includes a unique and patented container system providing superior flexibility for a variety of different ships types and offshore installations.
3. Eggersmann GmBH
Since 2012, Eggersmann is a company that offers a complete product line of mobile & stationary recycling and composting machinery. This company manufactures machines like BACKHUS windrow turners, BRT HARTNER stationary equipment, TEUTON, and FORUS shredders, and Terra Select trommel screens. This company also delivers solutions for all kinds of processes, including but not only, composting, dosing, sorting, opening, shredding, screening, and sifting. No doubt, Eggersmann is one of the leading suppliers of waste treatment plants and has decades of experience in the field of mechanical and biological (aerobic and anaerobic) recycling methods and processes.
These companies have helped many waste management companies in Indonesia in managing waste. It can be concluded that waste management companies and waste management tools are needed and have a great opportunity to develop in Indonesia.
Enter Indonesia’s Waste Management Industry With BRIGHT Indonesia
BRIGHT Indonesia could help foreign waste management businesses to enter the Indonesian market through our services such as Business Registration and Establishment, Business Partnership Engagement, Management and Strategy Consulting. The services will help your business to:
- Registering and establishing client companies in Indonesia. Help client companies obtain the work and stay permit for your foreign employee in the Indonesian office: expatriates utilization plan (RPTKA), expatriates utilization permit (IMTA), and limited stay permit (KITAS).
- Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arrange business meetings, and act as a liaison.
- Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
For more information, email firstname.lastname@example.org.
This article is written by Candy Bestari and Sintya Nur Muftiana