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RSWILSON PANDHIKA

GENERAL SECRETARY - IPR

WEBINAR : A STARTEGY OVERVIEW ON HOW INDONESIA’S PLASTICS&RUBBER INDUSTRY RECOVER POST COVID-19WEDNESDAY, 8TH JULY 2020

ABOUT USIPR is a non-for-profit association thatcomprises of plastics waste recyclers inIndonesia.

We aim to promote the implementation ofCircular Economy model and principle byimproving the plastics recycling sector inIndonesia, by engaging stakeholdersinvolved in plastics material in Indonesia

01

PLASTIC RECYCLING INDUSTRY CONDITION

02

Weak Market Demand

Supply Chain Disruption

Impacts

Expected Support

03 MARKET DEMANDMarket demand has slowly weakened since last year, and further disrupted bythe COVID-19 pandemic.

The decrease ranges from 25% - 70% in February until May 2020, dependingon the type of plastic product

In June – July 2020 market slowly recovers, also helped by the increase ofvirgin resin price.

There are some geographical variations in the local market demand.

I N D O N E S I A N P L A S T I C S R E C Y C L E R S

04

SUPPLY DEMAND CONDITION (PET)Significant decline in export markets, but generallyrecovering in the past month

The decline in the local market is relatively smaller

The market price of PET waste (pressed bale)dropped around Rp. 500,- to Rp. 1.000,-

New entrants to the rPET industry in Indonesiamay cause some market dynamics

I N D O N E S I A N P L A S T I C S R E C Y C L E R SPET

05

SUPPLY DEMAND CONDITION (PE)Recovering from low demand during the recentweeks, but some types of PE product remain weak

Some recyclers stopped receiving the plasticwaste for a period of time during April – June 2020,resulting in a slump of price

The market price of PE waste dropped betweenRp. 500 - Rp. 2,000.

Currently the biggest absorber of PE recyclates,the plastic bags industry is taking a big hit fromthe ban in Jakarta

PE

06 I N D O N E S I A N P L A S T I C S R E C Y C L E R S

SUPPLY DEMAND CONDITION (PP)The PP market is generally weak, forboth export and domestic markets.

Plastic furniture market demandgenerally weakened.

PP waste market price drops betweenRp. 1,000 - Rp. 1,500

PP

07

SUPPLY CHAIN DISRUPTION

Average drop in the amount of plastics waste absorbed by recycling industry in Indonesia during the months March – May 2020

08

THE IMPACT ON PLASTICS

RECYCLING VALUE CHAIN

I N D O N E S I A N P L A S T I C S R E C Y C L E R S

Scavengers faced difficulty to sell theircollected waste, thus their income isreduced, and relied more on theincome from the sale of wastecardboard and metal.

Labour lay offs in the range of 10 – 20%of total work force in some recyclingindustries.

09

LABOR SAFETY RISK

Waste that comes from the used PersonalProtective Equipment (PPE) gives risk for someworkers in the recycling industry, especially forhuman resources who have come into contactwith unsorted waste.

This risk decreases as the waste goes throughmore sorting processes.

10 I N D O N E S I A N P L A S T I C S R E C Y C L E R S

The Jakarta governor has issued a decree toban the usage of plastic bags starting on 1st ofJuly 2020.

The plastic bags industry, specifically thoseserving the Jakarta markets, are taking a bighit, further complicating the recovery of thissector.

The “Environment Friendly” definition as laidout in the decree disregard the use of recycledmaterial.

PLASTIC BAGS BAN IN JAKARTA

Government support to maintain the stability of recycled markets through:- Mandatory recycled plastic content (TKDUP) in certain plastic commodities.- The promotion of the usage of recycled plastic products.

11I N D O N E S I A N P L A S T I C S R E C Y C L E R S

EXPECTED SUPPORT

Collaboration between stakeholders in the plastics value chain, to achieve:- Improved recyclability of goods and plastic packaging- Increased recycling rate

Fiscal incentives in the form of tax relief, and also relief of expenses such as electricity, water, BPJS, etc.

Review of the regulations limiting the consumption of plastics

Plastics recycling industry in Indonesia is

heading towards promising future, due to

many FMCG companies pledging to use more

recycled material in their packaging.

However the industry needs to stand up to the

Quality challenge.

New entrants must carefully study the market

dynamics first to avoid over-saturation

OUTLOOK

12I N D O N E S I A N P L A S T I C S R E C Y C L E R S

PAST SEMINAR

13I N D O N E S I A N P L A S T I C S R E C Y C L E R S

CONTACT US

ADDRESSJL. SURABAYA NO.11

MENTENG – JAKARTA PUSAT

WEBSITEWWW.PLASTICSRECYCLERS.ID

EMAIL

LETSRECYCLE.IPR@GMAIL.COM.

I N D O N E S I A N P L A S T I C S R E C Y C L E R S

PHONE NUMBER (secretariat)

+62 817 0339 5390