On October 22, 2025, the Indonesian Business Council (IBC) held a kickoff discussion to launch its study on equitable and sustainable waste management for a circular economy. The discussion served to align both parties on scope, methods, and city selection to develop practical funding and institutional reform models for more sustainable waste management practices in Indonesia.
The study was commissioned in response to mounting pressure on Indonesia’s urban waste systems, driven by rapid urbanization, shrinking landfill capacity, and uneven service quality. IBC’s initial findings, first published in Vol. 6 of its IBC Navigator series, show that formal services handle less than half of urban solid waste, leaving large volumes unmanaged. With the national waste sector projected to reach a market value of around USD 31 billion by 2030, the study aims to explore how circular-economy approaches can turn this challenge into an economic opportunity through more efficient funding and institutional reform.
Building on this foundation, the study aims to break the cycle of underfunded and underperforming waste services by strengthening local fee systems and rebuilding public trust. It focuses on creating models that tie waste collection revenues directly to service improvements while testing institutional arrangements such as regional enterprises or dedicated subnational units that ensure transparent reinvestment. Through this approach, IBC seeks to help cities design sustainable, scalable waste management systems that advance not only environmental goals but also create tangible economic impact.
In the months ahead, IBC will refine its analytical framework and begin selecting pilot cities to test proposed funding and institutional models for its study. A white paper outlining key findings and policy recommendations is scheduled for completion by the end of the year, followed by two stakeholder workshops in early 2026 to validate and adapt the implementation toolkit for subnational governments. These steps will pave the way for a practical roadmap toward transforming waste management in Indonesia.