Overview of the Minister of Industry Regulation on Circular Economy for the Plastics and Packaging Industry

The Ministry of Industry (“Kemenperin”) is preparing a new Regulation of the Minister of Industry (“Permenperin”) concerning an action plan for the implementation of a circular economy in the industrial sector, including the plastics and packaging industries. The regulation aims to promote an increase in the use of circular materials in a measurable and sustainable manner, in line with the national development agenda.

“This permenperin will contain an action plan for the implementation of circular economy, including the use of circular materials in the industrial sector, action plans for stakeholders, as well as supporting policy within the industry,” stated Putu Juli Ardika, Acting Director General of Agro Industry at Kemenperin.

Putu explained that the drafting of the Permenperin is aligned with the targets set out in the 2025–2029 National Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional/RPJMN), which establishes a target of a 15 percent circular material usage ratio in the industrial sector by 2029. The target is expected to encourage industries to enhance efficiency of resource usage and reduce dependence on primary raw materials.

Putu further disclosed that policy adjustments are being made regarding the mandatory use of recycled plastic in bottled drinking water packaging (Air Minum Dalam Kemasan – “AMDK”). The previously stipulated minimum requirement of 1 percent recycled plastic content will be revised to a minimum of 3 percent Recycled Polyethylene Terephthalate (“rPET”), with the regulatory amendment currently in the finalization process.