Denmark and Indonesia has since 2018 been engaged in a strategic sector cooperation within circular economy and waste management. The objective of the partnership is to support circular economy and more effective waste management in order to accelerate a green transition and reduce negative impacts on the environment, livelihoods, economy and public health.
Indonesia produces more than 65 million tons of household waste every year. With a population of 280 Million people, an annual growth rate of 5% and a fast growing middleclass with large purchase power means that the waste volumes increase rapidly by 2-4% annually. Today, half of the waste in collected and transported to open landfills, and the rest burned illegally in the open, left in the environment or discharged to waterways or the sea. Indonesia is the world’s second largest discharger of plastic to the sea.
Waste represents an economic opportunity for innovative business. Through circular economy waste should no longer be end of consumption but the beginning as all materials retain potential as a resource for something new.
Strategic Sector Cooperation
The SSC partnership on circular economy and waste management between Denmark and Indonesia was launched in 2018, and the first phase of the cooperation was completed in June 2023. A second phase has been initiated in July 2023 for a three-year period until June 2026. The Danish Environmental Protection Agency (DEPA) collaborates with the Indonesian Ministry of Environment (KLHK), other sector ministries and local authorities in Indonesia and Denmark as well as with other international partners, civil society organisations, universities and private sector. Odense Waste Utility (Odense Renovation) is also involved in the Programme and collaborates with a number of selected cities in Indonesia.
The cooperation with cities includes advice and exchange of best practices within municipality waste planning, organization, services and operations, financing, waste energy recovery and other issues of relevance for the Indonesian local authorities at provincial and municipality levels.
The strategic sector cooperation in Indonesia is financed by the Danish Ministry of Foreign Affairs (MFA) under a framework agreement between Danish MFA and the Danish Ministry of Environment.
Activities in Phase 2 of the cooperation include, among others, the following:
- Policy dialogue on green transition, circular economy and waste management.
- Strategic advice on regulatory framework, legislation, governance, organisation and financing in waste management.
- Advice on circular economy and waste management, in particular on extended producer responsibility, organic waste, hazardous waste, textiles, other waste fractions and data management.
- Advice on waste planning and treatment for local authorities.
- Exchange of knowledge and lessons learned with green transition and solution as well as recycling as part of circular economy and waste management.
Enhancement of cooperation between public institutions and private sector, private sector involvement and increased investment within circular economy and waste management.
An add-on project titled Sustainable Island Initiative (SII). has been implemented in collaboration with the Danish Energy Agency and local authorities on the islands of Lombok and Batam/Riau on sustainable island development, waste-to-energy and waste management. This project was completed in June 2023.