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Material Recycling Value Chain

Partner: Nestle Indonesia, Indonesia Plastic Recycler (IPR) and plastic recycling SMEs

Location: Java, Indonesia
Year: 2022

The collaborative efforts between SWI, Nestle Indonesia, IPR, and plastic recycling SMEs in Indonesia stand as a testament to the power of partnerships in driving positive change. By combining environmental stewardship with economic development, this initiative not only addresses the pressing issue of plastic waste but also sets a precedent for future endeavors in sustainable business ecosystems. As the success of the partnership continues to unfold, it serves as an inspiring model for other regions and industries grappling with the challenges of plastic pollution.

In an era where environmental sustainability is paramount, collaborations between corporations and local entities play a crucial role in fostering positive change. Since 2021, a groundbreaking partnership has been flourishing in Indonesia, aiming to address the escalating issue of plastic waste. Sustainable Waste Indonesia (SWI), in collaboration with Nestle Indonesia, the Indonesia Plastic Recycler (IPR), and a network of plastic recycling SMEs, has been working to enhance the plastic waste management ecosystem.

One of the pivotal strategies adopted by SWI and its partners involves implementing output-based incentives to encourage the increased collection of four distinct plastic types: PET, rigid, film, and multilayer plastics. By incentivizing the collection process, the initiative not only contributes to environmental conservation but also stimulates economic growth within the recycling sector.

Recognizing the crucial role played by small and medium-sized enterprises (SMEs) in the plastic recycling landscape, the partnership has harnessed the capacity of these entities to enhance their facilities, acquire advanced equipment, and generate employment opportunities. Moreover, a focus on improving social welfare for informal collectors has been central to the initiative, creating a positive ripple effect across communities. SWI and its collaborators have actively worked towards strengthening the capacity of SMEs in securing a robust supply chain. Through strategic interventions, the initiative aims to improve the quality of recycled materials, thus enhancing competitiveness in the market. This multifaceted approach ensures a sustainable and resilient plastic recycling ecosystem.

As of now, the partnership boasts 26 SMEs of aggregators and recyclers spread across Java, reflecting the successful expansion of the initiative. In 2021 alone, the collaboration achieved a commendable 48% increase in improved collection capacity, measured in additional tonnage compared to the baseline. This substantial progress underscores the effectiveness of the strategies employed in combating plastic pollution.

Digital Traceability with i-MATOA Platform:

Embracing technological innovation, SWI and its partners have introduced the i-MATOA platform, a revolutionary digital reporting and repository system. This platform serves as the central hub for traceability and accountability within the tonnage and value chain network. The manifest system and supplier network integrated into i-MATOA provide real-time data, ensuring transparency and efficiency in the entire plastic recycling process.