EXTENDED PRODUCER RESPONSIBILITY FOR PLASTIC PACKAGING IN INDONESIA

Abstract

Fast-Moving Consumer Goods (FMCG) companies significantly contribute to the high consumption of plastic packaging, and the waste is ubiquitously found everywhere in Indonesia, from landfills to oceans. The number is likely to increase as the pandemic hits, while the government already has its ongoing national action plan to reduce marine debris by 70% in 2025. The present study reminds both stakeholders to have proper mitigation and conduct sustainable business because the target timeline gradually approaches. Drawing on the belief that FMCG companies are the producers with the ultimate control of product packaging, the present study roots from the concept of Extended Producer Responsibility (EPR) from the Organisation for Economic Co-operation and Development (OECD) in its updated guidance in 2016. Based on this concept, the producers shall extend its responsibilities in managing waste until the consumers finish the products. The present study explores three case studies from different FMCG companies: Danone, Unilever, and Coca-Cola. The exploration identifies each EPR with the OECD's policy instruments, i.e. product take-back requirements, economic and market-based instruments, and information based instruments. As part of the discussion, the present study has proposed a scheme of EPR and waste management for plastic packaging in Indonesia. In conclusion, the present study observes that EPR in Indonesia for plastic packaging is likely voluntary from the producers, instead of mandatory from the government.