Indonesia’s environment ministry has announced a forthcoming ministerial regulation obliging producers to finance plastic waste management through producer responsibility organisations. Around 10,000 large factories are in scope as announced — but the instrument itself has not been issued, and the existing 2019 roadmap regulation remains the operative law.
What Happened
On 12 July 2026 the Ministry of Environment and the Environmental Control Agency (KLH/BPLH) announced that producers will be required to finance the management of plastic waste through a new ministerial regulation. The announcement states the requirement will be formally set down (akan dituangkan secara resmi) — that is, the regulation was still in drafting on that date, and no regulation number was given. The core mechanism described is that producers finance plastic waste management, channelled through Packaging Recovery Organisation structures that distribute budgets to community-level waste management, framed as green-jobs creation. This is a development under Indonesia’s existing framework rather than a stand-alone new regime: Ministerial Regulation Permen LHK No. P.75/2019 on the roadmap for producer waste reduction remains the operative instrument.
What’s New
- Scope as announced: approximately 10,000 large factories nationwide that use plastic in their production processes.
- Core mechanism: mandatory producer financing of plastic waste management, channelled through Packaging Recovery Organisation (PRO) structures to community-level waste management.
- The announcement gives no reporting duties, no per-year reduction percentages and no effective date — the regulation had not been issued.
- The existing instrument, Permen LHK No. P.75/2019, obliges manufacturing, retail and food and beverage producers to reduce packaging and product waste by 30% by 2029 across plastic, paper, glass and aluminium, on the reduce, recycle and reuse principles.
- The ministry’s own 3R portal records very low uptake of P.75/2019 — 15 businesses actively participating as of 2022, with technical guidance delivered to 353 enterprises — and lists five implementation barriers: weak promotion, weak inter-agency coordination, thin institutional capacity, ineffective incentives and disincentives, and inadequate monitoring. The new financing mechanism should be read against that record.
- Sourcing note: no matching 2026 EPR regulation is retrievable from the official legal databases, so the regulation number, its type as enacted, targets, reporting duties and effective dates cannot be stated. Reported target dates for issuance appear only in secondary media.
Key Dates & Timeline
Permen LHK No. P.75/2019 issued — producer waste reduction roadmap, 30% reduction by 2029
KLH/BPLH announces the planned EPR ministerial regulation
Regulation number, targets, reporting duties and effective date
30% waste reduction target under the existing P.75/2019 roadmap
Affected Industries
Packaging · All manufacturing with Indonesian operations · Automotive components and aftermarket · Consumer goods · Food and beverage · Retail
Who Is Affected
Producers operating large factories in Indonesia that use plastic in production; Indonesian subsidiaries and contract manufacturers; packaging, finance and compliance functions; anyone already registered under the P.75/2019 roadmap.
Standards / Products in Scope
Plastic packaging and plastic used in production by large producers in Indonesia. Precise scope thresholds will be set by the regulation when issued; the announced figure of approximately 10,000 factories is the ministry’s own framing.
Prohibitions, Restrictions & Requirements
No prohibition. The announced obligation is financial — producers fund plastic waste management — rather than a restriction on materials or products.
What Companies Should Do
- Confirm whether your Indonesian operations are already covered by Permen LHK P.75/2019 and whether a roadmap has been submitted; the low participation figures suggest many obligated producers have not filed.
- Budget for a producer financing contribution in 2027 planning on a scenario basis, since the mechanism is announced but unquantified.
- Identify which PRO structures operate in your sector, because the announced mechanism routes funding through them rather than through direct compliance.
- Track the official legal database for the regulation’s issuance rather than relying on media reports of the number or the targets — neither is available yet.
This is an announcement of intent, not a regulation, and it is worth treating as such. The actionable item today is the 2019 roadmap that is already law and widely unimplemented — a producer that has not filed under P.75/2019 is exposed now, regardless of what the new financing regulation eventually says.
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