The waste management and recycling sector in Indonesia is showing dynamic progress, driven by environmental urgency, government targets, and technological innovation. The Indonesian government has set a target to reduce waste by 30% and handle 70% of waste by 2025. This target is further reinforced by the ambition to achieve a “Zero Waste Indonesia 2029” and zero plastic pollution by 2040. These goals create significant opportunities for investment and technological development in this sector.

Technologies for Waste Management and Recycling:

• Composting Technology (for organic waste processing)
  • Aerobic Composting: The decomposition of organic waste by microorganisms with the presence of oxygen.
  • Anaerobic Composting: Decomposition without oxygen that produces biogas, a renewable energy source.
• Recycling Technology (for inorganic waste processing)
  • Plastic Shredding & Washing: Machines that process plastic waste into recycled plastic pellets.
  • Pyrolysis: Heating plastic waste without oxygen to produce fuel oil.
• Waste-to-Energy Conversion
  • Refuse Derived Fuel (RDF): Converting waste into alternative fuel.
  • Plasma Gasification: A thermal process that converts waste into syngas (synthetic gas) while drastically reducing waste volume.
  • Incinerator: Burning waste at high temperatures to generate energy.

Buyers of Recycled Products:

• Government
• Manufacturing Industry (companies producing goods from recycled materials)
• Fast-Moving Consumer Goods (FMCG) Companies (e.g., bottled water producers)
• Industry Associations
• MSMEs and Artisans (organic waste processed into compost purchased by farmers, plantations, or resold as fertilizer)
• Export Market (some recycled products, such as plastic pellets or processed paper waste, are exported)

Funding Allocation for Waste Management and Recycling by the Indonesian Government:

• Central Government (State Budget – APBN): Through the 2025 Ministry of Environment and Forestry budget of IDR 754.2 billion, an allocation of IDR 45.6 billion is provided to the Deputy for Waste, Hazardous, and Toxic Materials Management.

Regional Government (Regional Budget – APBD): According to data from the Ministry of Home Affairs (Kemendagri) as of October 2024, the average waste management allocation at the district/city level is only 0.64% of total regional budgets.

Source : 

• https://www.kemenlh.go.id/news/detail/klh-bplh-tegaskan-arah-baru-menuju-indonesia-bebas-sampah-2029-dalam-rakornas-pengelolaan-sampah-2025 
• https://www.cnbcindonesia.com/news/20250212191531-4-610187/hemat-rp325-m-anggaran-klh-di-2025-tersisa-rp7546-m 
• https://lestari.kompas.com/read/2024/10/04/161503086/kemendagri-alokasi-apbd-untuk-pengolahan-sampah-rata-rata-kurang-dari-1