supporting indonesia in developing a national circular

Indonesia host

agency

SUPPORTING INDONESIA

IN DEVELOPING A

NATIONAL CIRCULAR

ECONOMY STRATEGY Inception Workshop |

February 24, 2020

Co-convenors

Technical

advisors

Landscape

Indonesia

2

Session 1: Welcome and opening remarks by the UNDP

Session 2: Keynote speech by the Government of Indonesia

Session 3: Keynote speech by the Government of Denmark

Session 4: Signing ceremony between the

UNDP and the Government of Denmark

Session 5: Private sector perspectives by the IBCSD

Session 6: Overview of government efforts by Bappenas

Session 7: Overview of potential benefits by AlphaBeta

Session 8: Panel discussion

Session 9: Sector breakout workshop

Session 10: Plenary discussion

Inception Workshop Plan

WELCOME AND

OPENING

REMARKS BY

THE UNDP

Christophe BahuetUNDP Resident

Representative to Indonesia

4












Contents

Suharso MonoarfaMinister of Bappenas

KEYNOTE

SPEECH BY

THE

GOVERNMENT

OF INDONESIA

OPENING REMARK

Developing A National Circular Economy Strategy for Indonesia

Suharso MonoarfaMinister of National Development Planning/ Head of National Development Planning Agency (Bappenas)

Presenting on Inception Workshop:Developing a National Circular

Economy Strategy for Indonesia

Jakarta, February 24th 2020

6

IMPACT

300

Overview Indonesia’s Situation

Policy needed

to achieve

environmental

sustainability and

national economic

growth!!!

Indonesia target:• High-Income country status in 2036.

• Reducing the Green House Gas (GHG)

emissions of up to 29% (unconditional)

and 41% (conditional) by 2030.

• Completed Sustainable Development

Goals (SDGs) in 2030.

Increasing:

• Demands for natural resources

• Consumption

• Human’s basic needsmillion people

8.5 million people

2030Population

7

Transition from Linear Economy to Circular Economy

8

Circular Economy is

a new industrial

model focuses on

reducing, reusing,

and recycling the

physical inputs of the

economy, leading to

reduce waste and

primary resource

consumption

8

R

Circular Economy in Indonesia Policy

Circular Economy is an ideal concept that fits the narratives of achieving national economic growth targets and promoting environmental sustainability at the same time.

Vision of 2045

National Mid Term Planning 2020-2024

Closed-loop production process

• Reduce

• Reuse

• Recycle

• Recover• Revalue

SDG’s LCDI

CE

5

9

National Circular Economy Strategy

Collaboration:

PHASE

Circular Economy Project

KEY Sectors

Food & beverage

Construction Electronics

Textiles Plastics

Instruments include rules and regulations on sustainable production methods,

enaction of Green Industry Standard (SIH), and fiscal tools to increase the efficiency of natural resources usages.

10

Circular Economy Brings Effects on Economic Growth and Job, Business Benefit, and Bigger Social Benefit

Circular economy could lead to positive and sustainable

earnings model

Impact of EachScenario

Circular Go Scenario(1)

Linear Bow Scenario(2)

Circular flow Scenario(3)

New Jobs 23.000 14.000 83.000

Social Value EUR 11,3 Billion EUR 5,7 Billion EUR 31 Billion

Economic Growth EUR 3,8 Billion ∆ 0,3% GDP EUR 8,4 Billion

(1) Conservative assumption (increasing circular economy with limited degree of innovation)(2) Small diversion from linear path (no rapid shift towards a truly circular system)(3) Radical shift to a circular economy with government policy as driving force

GDP effects and Added Value in Three Scenarios

Development of Greenhouse Gas Emissions in the Three Scenarios

Macroeconomic Effect Simulation of Circular Economy in the Netherlands (Stegeman, 2015)

• Stegemen (2015)simulation of circulareconomy in Netherlandshows that even in theminimum variant,circular economy isgood for employmentand GDP.

11

Challenges to Scaling Up the Circular Economy in Developing Countries

12

The greatest challenges to implementing the Circular Economy in developing countries to

be limited institutional capacity and a lack of access to the requisite finance and

technology

On which outcomes is the circular economy most likely to help deliver?

What is the most exciting sector for the circular economy?

Greater opportunities for the Circular Economy to contribute to waste management strategies and

industry rather than to other sectors of the economy such as energy, construction or environmental

management

Source: Preston, Lehney, and Wellesley (2019) based on Chatham House-UNIDO Survey

Source: Preston, Lehney, and Wellesley (2019) based on Chatham House-UNIDO Survey

12

Recycling Industry in Indonesia: Economic Potential

13

Category

Scavengers Collectors Millers Factory Labors Recycling Product Sales

Related Industries

Labor Absorbtion

3,000,000 120,000 40,000 100,000 60,000 40,000

More than

1,000 companiesInvestation

± IDR 5.15 Trillion

Source: Ministry of Industry

Import SubtitutionRaw Material and End Product

Export Market PotentialChina closed their Plastic Recycling Factory (with capacity 9 million ton/year)

13

Recycling Industry in Indonesia: Plastic Recycling Industry

14

• Plays an important role in meeting the needs of raw materials and increasing the competitiveness of the downstream plastic industry

• Plays an important role for national economic chain dan decreasing import through import substitution

• One of solution for Indonesia’s plastic pollution

• Covering 600 large industries and 700 small industries with an investment of IDR 7.15 trillion

• Production capacity reaches 2 million tons and absorbs 3.36 million workers (directly and indirectly, including scavengers and collectors)

• Using raw materials from domestic and imported plastic waste. Import of recycled raw materials is regulated in Minister of Trade Regulation No.31 of 2016.

Source: Ministry of Industry 14

GOVERNMENT PRIVATE

NGO/CSO

ACADEMICS

Circular Economy Partnership

DEVELOPMENT

PARTNERS

15

Thank You

16

17












Contents

Lea WermelinMinister for the Environment

of Denmark

KEYNOTE

SPEECH BY

THE

GOVERNMENT

OF DENMARK

19












Contents

SIGNING CEREMONY FOR THE

FINANCIAL AGREEMENT BETWEEN THE UNDP

AND THE GOVERNMENT OF DENMARK

Rasmus A. Kristensen

Danish Ambassador to

Indonesia

Christophe Bahuet

UNDP Resident

Representative to Indonesia

21












Contents

Shinta W. KamdaniPresident,

Indonesia Business Council

for Sustainable Development

PRIVATE

SECTOR

PERSPECTIVES

OF THE

CIRCULAR

ECONOMY

Private Sector Perspectives of the

Circular EconomyBy Shinta Kamdani

President of Indonesia Business Council for Sustainable Development (IBCSD)

Presentation for Inception Workshop: Developing A National Circular Economy Strategy for Indonesia, Jakarta, 24 February 2020

Establishment of IBCSD

• The founding of IBCSD reflects nearly 4 years of effort within KADIN, launched on 27 April 2011 by 6 Founding Members

• CEO led association that aims to provide business leadership as a catalyst for change towards sustainable development

• Legally established as an Indonesia Association on 6 October 2011

• As the chapter of the World Business Council for Sustainable Development (WBCSD)

3

Current IBCSD’sMembers

Area of Works:Circularity as One of the Approach

Planet: Food & Nature, Forest,

Agriculture, Water

People: Business &Human Rights, GreenJobs, Green Lifestyle

Profit: economic prosperity, Sustainable

BusinessPartnership

Sustainable Business Practices: Circular Economy, Sustainable Finance, etc

Some works with CE approach:1. Reducing Food Loss and Waste (with support from P4G, Bappenas, WRI, WRAP, WBCSD)2. Promote Resource Efficient and Cleaner Production (RECP) and Green Industry (partnering with Ministry of

Environment and Forestry, Ministry of Industry, Indonesa Cleaner Production Center (ICPC)

Circular Economy:The Business Case

• To retain the value of the circulating resources, products, parts and materials by creating a system with innovative business models

• By applying these principles, the company can collaborate to design out waste, increase resource productivity and maintain resource use within planetary boundaries

Circular Economy onhorticulturesector: an example in IBCSD’s piloton

Food Loss &Waste

• Chilli flesh waste arising from trial or mass seed production → Consuming chilli flesh to the employee (indoor)

• Seed waste/loss (seeds cannot be sold due to declining quality and sales)→ Re-cleaning rejected seed to upgrade Germination

Circular Economy on RECPConcept

Resource Efficiency

WasteMinimization

Human WellBeing

Tools for

Companies

Source: WBCSD’s CEO Guide on CE

FIVE BUSINESSMODELS

BASF developed the innovative “biomass balance method,” in which fossil resources in the current production Verbund are replaced by renewable resources such as bio-naphtha or biogas derived from organic waste or vegetable oils.

DSM’s new Niaga® technology gives carpet designers the freedom to make carpets fully recyclable. These carpets are made from a single material, or from two materials married together by a reversible glue. The technology uses 90% less energy and zero water during manufacturing, and allows full material recovery after use, without losing material quality.This helps reduce the amount of carpets that ends up in landfill, estimated at 1.8 billion kg per year in the U.S. alone.

• In 2001, Tata Steel and the Steel Authority of India Ltd. established the joint venture Mjunction as an e-marketplace for by-products (e.g. secondary steel) and idle business assets. Buyers and sellers have price transparency, and what would be waste is now feedstock for companies, saving money while bringing environmental benefit.

• Mjunction has become the world’s largest e-market for steel, is India’s biggest e-commerce company with nearly 30 waste streams and volumes have increased from$13.8M in 2002 to $9.45B in 2016

CIRCULAR SUPPLY CHAIN RESOURCE RECOVERY SHARING PLATFORM

FIVE BUSINESSMODELS

• Philips is transforming its business model to enable value-based healthcare, moving from selling equipment alone to a long-term solutions model to hospitals and other care providers. The new model enables care providers to reduce costs, share risks and access state-ofthe-art solutions and service at a more predictable cost. By doing so, Philips delivers better customer value and shifts its innovation focus much closer to customers.

• Currently 9% of Philips total revenues (in 2016) are categorized as circular, and the aim is to reach 15% in 2020.

Renault’s leadership in European electric vehicle sales is based on circular economy principles and life-cycle thinking. The company extends and optimizes the life cycle of EV batteries by selling them as a service.Since the beginning of its EV offerings, Renault has promoted battery leasing, preferred by more than 90% of its customers. Renault has further extended the lifetime of its EV batteries by using them for stationary energy storage.

PRODUCT AS A SERVICE PRODUCT LIFE-EXTENSION

IBCSD MEMBERINISIATIVES - EXAMPLES

• Re>Pal is an Australian company with its main factory in East Java, Indonesia. Using state-of-the art pallet technology, Re>Pal offers environmentally responsible pallets for a wide range of applications across business supply chains throughout the South East Asian export-hub and Australian region.

• Re>Pal zero waste pallets are made from 100% waste plastic using Re>Pal’s unique ThermoFusion™ technology process.

ZERO WASTE PALLETS RECYCLED MATERIAL

Thank you

Menara Duta Building,7th FloorJl. HR Rasuna SaidKav B-9, South Jakarta, Indonesia

[email protected]

+62 21 5290 1942

www.ibcsd.or.id

mailto:[email protected]

http://www.ibcsd.or.id/

35












Contents

Dr. MedrilzamDirector of Environmental

Affairs, Bappenas

OVERVIEW OF

CURRENT

INDONESIAN

GOVERNMENT

EFFORTS TO

SUPPORT A

CIRCULAR

ECONOMY

OVERVIEW OF CURRENTINDONESIA GOVERNMENT EFFORTto Support A CIRCULAR ECONOMY

Dr. Medrilzam – Director for Environment AffairsMinistry of National Development Planning/BAPPENAS

J A K A R T A

24.02.2020

Presenting on

Inception Workshop:

Developing a National

Circular Economy

Strategy for Indonesia

1.5oC

2 oC

3 oC

4 oC

5 oC

COP21 ambition

Impact of current

commitments

Business as usual

Under a business as usual

scenario. The global temperature

by 2100 will be more than 4oC

above pre-industrial levels.

To limit temperature rise to 1.5oC.

We need to cut greenhouse gas

emissions from 65 to 39 billion

tonnes CO2e per annum by 2030

Current national commitments

achieve about half of the required

emissions cuts. Circular economy

may fill about half of the remaining

gap

THE SITUATION THE END GOAL THE SOLUTION

National commitments• Renewable energy• Energy efficiency• Reduced deforestation

Circular economy• Recovery and reuse• Lifetime extension• Sharing and service models• Circular design• Digital platforms

Other measures• Further scale up of renewables

and energy efficiency• Reforestation• Climate-smart agriculture

TH

E G

AP

Cir

cu

lar

Eco

no

my

& L

ow

Carb

on

Develo

pm

en

t

National Determined

Contribution (NDC)-2015

Emission reduction

in 2030: 29%

(unconditional) and

41% (conditional),

compared to the

baseline emission in

2030

• Strategic Environmental

Assessment as vehicle.

• Analyze the impacts of

policies implementation.

• 4 scenario for emission

intensity calculations: base

case, moderate scenario, high

scenario and beyond.

• Inputs for RPJMN 2020-2024

and IV 45.

• Waste and green industry

as one of priority sector

• Low Carbon Development as

national priority.

• Emission reductions and

emission intensity as indicators.

• Circular economy as one of the

approach for low carbon

development in waste sector

and green industry

Indonesia Vision

2045

• GDP growth rate of 6% annually

until 2045.

• Unlocking an array of economic,

social and environmental

benefits.

Low Carbon Development

Indonesia (LCDI) - 2019

Global Commitment & Country Development Objectives

Climate Change Agenda • SDGs consist of 17 goals and

169 targets to be achieve in 2030

• CE practices can be applied as a

'toolbox' for achieving a

sizeable number of SDG

targets

RPJMN 2020-24

SDGs

Cir

cu

lar

Eco

no

my

in the P

lannin

g D

ocum

ents

Government of Indonesia has stated

Circular Economy agenda in

the narration of Vision of 2045 and

National Mid Term Planning 2020-2024

Document.

but the Indicator ofCircular Economy is not determined

yet in the Matrix of RPJMN 2020-2024

PARADIGM SHIFTCIRCULAR ECONOMY

From LINEAR

Extract &

produce

Consume Collect Landfill

Linear supply chains are costly, susceptible

to volatility and harmful to our environment

Circular supply chains reduce costs, provide

pricing stability and protect our environment

Collection Recycling

Processing

Design/

Manufacturing

Consumer goods

To CIRCULAR

A circular economy

beyond waste management and recycling!

CONCEPT OFCIRCULAR ECONOMY

Impact Description Key facts

Economic

A circular economy model can create significant

economic impact and business benefits by (a) creating

new business opportunities; (b) reducing waste; (c)

strengthening access to natural resources and

safeguarding supply chains; (d) reducing regulatory risk;

and (e) create improved reputation with consumers and

employees

• A circular economy would generate economic benefits of

up to €1.8 trillion per year by 2030 in Europe (7% higher

GDP in 2030).

• A Nielsen Global Survey found that sustainable packaging

mattered to about 63% of consumers in Asia Pacific.

• Materials and components constitute 40–60% of the total

cost base of manufacturing firms and circularity can create

a competitive advantage.

Environmental

Large savings to waste, water and CO2e

• Potential to reduce CO2e by 48% in Europe by 2030.

• Primary material consumption could fall by 32% in Europe

by 2030.

• Waste is responsible for 3% of the total GHG emissions in

Indonesia.

Social

Large potential employment benefits, as well as broader

social benefits such as reduced household costs, lower

air pollution, lower congestion, and lower health costs

(associated with dengue and burning of waste for

example)

• Congestion costs Indonesia 5% of GDP, and 8% of land

in Indonesian cities dedicated to parking (potential to

reduce through car sharing).

• Over 25% of fish sold in markets in Indonesia contained

plastics.

POTENTIAL BENEFITSof a Circular Economy for Indonesia

Source: UNDP, 2019

Challenges in Implementing CEIndonesia

Law

enforcement,

regulation, and

education

Commitment

of all related

stakeholders

Infrastructure

(including

technology) and

innovative

financing

scheme

in implementing

Circular Economy

Balance

between supply

& demand side

Market access

with the

satisfying quality

and quantity is

important

Improve

understanding,

knowing the

implication, and

scoping (what to

do first, who’s

doing what)

Source: MoEF, 2019

Waste Recycling to support CE

8.036 unitWaste Bank

with 245.938 customer

Economic Benefit from Waste Bank Yearly

WASTE

TREATMENT

IN 2018Source: MoEF, 2019 1093 unit

TPS3R and PDU(Reduce, Reuse, Recycle center)

WASTE

TREATMENT

IN 2018Source: MoEF, 2019

39 KM Roads using Asphalt

from Plastic Waste

Implementation of Green Industry to support CE

Source: MoI, 2017 & 2019

Green IndustryAward

2019

85CompanyLevel 5

53CompanyLevel 4

3.49Trillion

Energy Saving

228.9Billion

WaterSaving

IDR

Economic Benefit from Green Industry

Cement Fertilizer Pulp & Paper

Action

• Biomass

alternative energy

• Vertical Fishing Mill

• Waste heat

recovery cooler

• Waste heat

recovery power

generation

• Coal Gasification

• Purge Gas

Recovery

• Excess Gas

recovery

• Biodiesel waste

for BBM Forklift

• Bark for Power

Electricity

• Black Liquor from

pulp crack cycle

for fuel

• Energy & Steam

Efficiency with air

heater for preheat

Impact Cement Fertilizer Pulp & Paper

Raw Material

Efficiency1.7% 1.82% 3.71%

Energy Efficiency 6.15% 4.26% 12.07%

Alternative

Energy Rate5.79% 0.01% 42.58%

Water Ratio

Reduction10.25% 8.94% 6.79%

CO2 Emission

Reduction797,010 ton CO2e 727,594 ton CO2e 568,963 ton CO2e

IDR

Disposal Purchashing

Use

CE

DEVELOP MARKETS

FOR RECYCLED

MATERIALS

DESIGN BETTER

PRODUCT

REDUCE

PROCESS

WASTE

OPTIMISE

PRODUCT

LIFETIMES

ENCOURAGE

RECYCLING

IMPROVE

COLLECTIONS

ENCOURAGE

REUSE

INVEST IN

INFRASTRUCTURE

Presidential Regulation No.16/2018 encourages

the development of SPP in Indonesia

Sustainable Public Procurement is a process by public

organizations to fulfil their needs for goods, services, construction

and utilities to achieve value for money in the entire usage cycle

which benefits not only for the organization, but also society and

the economy, and the other hand significantly reduces negative

impact on the environment.

Roadmap SPP Indonesia

1. Determination of categories for goods / services that will be

prioritized (product / commodity availability)

2. Setting criteria (environmental, social, economic)

3. Conduct assessment status

4. Conduct legal review of rules related to SPP

5. Market readiness analysis

6. Formulate policies and action plans

7. Training and capacity building

8. Piloting

9. SPP implementation

Status

Assessment

Legal

Review

MarketReadliness

Analysis

SPP Policy Plan

Training

Implementation

UNEP

Ministry of

Environment &

Forestry

No. P.5/2019

• Paper

• Plastics

• Wood

• Medical waste

treatment equipment

• Air Conditioner (AC)

GR

EE

N

PR

OD

UC

T

Source: Coord.MfEA, 2019

Sustainable Public Procurement (SPP) to Support CE

National Circular Economy Strategy

Collaboration:

PHASE

Circular Economy Project

KEY Sectors

Food & beverage

Construction

Electronics Textiles Plastics

Starts:

January - June 2020

(Six Months)

Output: To analyze the economic, environment, and social benefit

of CE; To identify the barriers for CE, and to identify policy options

INDUSTRIAL SECTOR

Analysis of the Economic, Environmental,

and Social Potential of CE

Circular Economy

Platform

THE WAY FORWARD

NEXT AGENDA

Indonesia Circular

Economy Action Plan

Learning by doingthrough collecting examples globally

and in Indonesia. A shift towards

circular economy requires a long

process, immediate action is necessary.

Collaborative action for policy

makers, private sectors,

public, academics, NGO, and other related stakeholders

Supported by UNDP as a part to improved

understanding, mapping and identification of CE in Indonesia and also to set a baseline for CE indicators.

A multi year roadmap to implement

CE in Indonesia with clear indicator and target for each stakeholders

Set up Enabling ConditionLaw enforcement and regulation,

education, and innovative financing

scheme to expedite the implementation

TIMELINECIRCULAR ECONOMY

Analysis of the

Economic,

Environmental,

and Social

Potential of CE

Indonesia

Circular Economy

Action Plan

Circular Economy

Platform &

Piloting Project

Partnership and

Set up Enabling

Condition

Determined in

RPJMN 2025-2029 &

Fully Implementation

2021 2022 2023 20242020

Thank you

Further Contact:

Dr. MedrilzamDirector for Environmental Affairs

BAPPENAS

Phone: +62-21-3900412, +62-811-802824

Email: [email protected] and

[email protected]

52












Contents

Dr. Fraser ThompsonDirector, AlphaBeta

OVERVIEW OF A

CIRCULAR

ECONOMY AND

ITS POTENTIAL

BENEFITS TO

INDONESIA

54

This project is being led by the UNDP in cooperation with Bappenas and

with the support of the Government of Denmark

Indonesia host agency Co-convenors

Technical advisors

Landscape

Indonesia

55

This linear model has not only created environmental issues but also

created problems for businesses, consumers, and the government

Entity Problems linked to linear model

▪ Over 12 million hectares of forest lost between 2010-17 due to commodity

production and shifting agriculture

▪ Pollution in major rivers (e.g. Citarium River) creates critical health hazards

for people dependent on them for sustenance

Environment

▪ Producers are subjected to price risk - the last decade saw higher price

volatility for primary resources than in any single decade in the 20th century

▪ The Rupiah was rated the most volatile Asian currency in 2018, contributing

to forex risk

Businesses

▪ Indonesia was ranked 65th among 113 countries in the Global Food

Security Index

▪ Higher costs of production may translate into higher prices for consumers.

For example, the price of rice in Indonesia is over 2X of its ASEAN peers

Consumers

▪ Faced with persistent current account deficit due to import requirements

(e.g. rice and cotton)

▪ Increased government spending in areas ranging from food subsidies to

ocean cleanups

Government

56

A circular economy can help address these problems

Biochemical

feedstock

Parts

manufacturer

Product

manufacturer

Service provider

Biological nutrients Technical nutrients

Consumer User

Landfill

Biosphere

Farming/

collection1

Leakage—to

be minimized

Recycle

Refurbish/

remanufacture

Reuse/

redistribute

Maintenance

CollectionCollection

Mining/materials manufacturing

Extraction of

biochemical

feedstock2

Restora-

tion

Cascades

Biogas

Anaerobic

digestion/

composting

Energy recovery

A circular economy is an economic system of closed loops in which a) raw materials,

components and products retain their value as much as possible, b) renewable energy

sources are used, and c) systems thinking is at the core

57

REDUCE

▪ Remove waste in production and supply chain (e.g. 3D printing)

▪ Virtualize products and services (e.g. electronic books, tele-

commuting)

▪ Redesign products to require less resource inputs (e.g. high

strength steel in construction)

▪ Recycle materials

▪ Anaerobic digestion and extracting biochemicals from organic

wasteRECYCLE

REUSE

▪ Share assets (e.g., cars, rooms, appliances)

▪ Use of secondhand products

REFURBISH

▪ Remanufacture products or components

▪ Prolong life through maintenance of products

A circular approach comprises of the 5Rs

RENEW

▪ Shift to more renewable energy and materials (e.g. substituting

plastic packaging with paper-based packaging)

58

A range of companies have built successful businesses around the 5Rs

RENEW

REDUCE

REUSE

RECYCLE

REFURBISH

59

With several important trends in place, the time is right to for countries to

pursue the circular economy!

Trends

Advancement in

Industry 4.0

Increasing

consumer

acceptance

Greater

collaboration due

to urbanisation

Availability of

new capital to

support

investment

60

Most firms in Indonesia are interested in understanding more about

circularity

WHERE ARE WE TODAY?

Q. What is your company’s willingness to engage during the development of this national

circular economy strategy? % of firms

2

100

20

78

No willingness

to engage

Some willingness

to engage

Strong willingness

to engage

Total firms

Source: Survey of firms in Indonesia (sample size = 40)

61

Q. What is the main motivation for you in implementing circular economy opportunities?

(tick all that apply) % of firms

Firms in Indonesia are most motivated by reducing environmental impact

and building their brand and reputation in adopting circular actions

WHERE ARE WE TODAY?

96

86

54

50

46

39

36

21

14

14

Attract, retain and engage employees

Lower price volatility of raw materials

Build your brand and reputation

Reduce environmental impact

Develop new markets

Respond to government regulations

Lower cost of natural resources

Improve ability to attract investment / capital

Build loyalty with your customer base

Other (please specify)


62

Share of firms highlighting barrier as very relevant

(tick all that apply) % of firms

Firms in Indonesia have highlighted top 10 barriers to adopting circularity

actions

IMPLEMENTATION BARRIERS

48

39

39

35

35

32

32

29

26

23

Not profitable

Difficulty in changing customs and habits

Inadequately defined legal frameworks

Implementation and enforcement failures

Unintended consequences of

existing reglations

Lack of infrastructure

Poorly defined targets and objectives

Insufficient end marketes

Lack of capital

Imperfect information


63

Analysis of circularity

economy potential in

Indonesia

Phase 1Dec 2019-May 2020

A Circular Economy

Action Plan and

National Circular

Economy Platform

Phase 2Jun 2020-Jun 2021

International

Partnerships and

implementation

Phase 3Jul 2021 onwards

Developing a national circular economy strategy is a multiphase process –

we are currently in Phase 1

64

Objectives for the Inception Workshop

Provide an overview of the circular

economy concept and its importance

for Indonesia1

Share initial analysis on circular

economy opportunities and levers in

five prioritised sectors

2

Gather input from participants on which

opportunities and levers to prioritise,

potential barriers, and initial ideas for

tackling barriers

3

Align on multi-stakeholder engagement

process going forward to support the

implementation of a circular economy in

Indonesia

4

64

65












Contents

PANEL DISCUSSION:

CAPTURING CIRCULAR ECONOMY OPPORTUNITIES -

LESSONS LEARNT

Dr. Medrilzam

Director of Environmental Affairs,

Bappenas

Annisa Fauziah

Business Development Manager,

Tri Upcycle

Helga Vanthournout (Moderator)

Advisor, SYSTEMIQ

Founder, Wealth of Flows

Djoni Wesida

Managing Director,

Technology & Innovation,

Great Giant Pineapple

Mohamad Bijaksana

Junerosano

Managing Director,

Waste4Change

67












Contents

BREAKOUT

GROUPS:

Discussion on

levers to capture

opportunities and

how to overcome

barriers

Introduction (10 minutes)

Gallery walk (20 minutes)

Group discussion (60 minutes)

Find your facilitator!

69












Contents

PLENARY

DISCUSSION:

Sharing breakout

discussion insights

In which opportunities does your group

see the highest potential?

Which levers can be used to maximise

the potential of these opportunities?

Any other comments?

What are the key challenges to capturing

these opportunities and what needs to be done?

71

Next steps and plan of action

71

Inception workshopFinal report and

launchFollow-up with key

stakeholders

▪ Refine sizing model

based on workshop

insights on

opportunities, levers,

and barriers

▪ Data collection to fill

any gaps

▪ Inputs from key

stakeholders for

sanity checks

▪ Draft report

▪ Develop a plan to

transition toward

phase 2 of the project

▪ Articulate clear next

steps

Analysis

▪ Conduct briefings with

Ministries on the

workshop outcomes

▪ Consult key

stakeholders for their

inputs

▪ Multi-stakeholder

workshop

▪ Identify stakeholder

champions to engage

with on the project’s

next steps

Stakeholder engagement

Feb-Mar 2020 Apr-May 2020 June 2020

supporting indonesia in developing a national circular

Documents