Indonesia and Germany initiate InCircular Project, supporting the Acceleration of Circular Economy Transition in Indonesia

JAKARTA – The Ministry of National Development Planning/Bappenas, in collaboration with the Indonesian and German governments and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, officially launched the InCircular Project as an effort to strengthen Indonesia's transition to a circular economy in Jakarta on Thursday (27/11). This initiative is part of Germany's development cooperation through the German Federal Ministry for Economic Cooperation and Development (BMZ) and was attended by more than 100 participants, including high-ranking government officials from Indonesia and Germany, representatives of private sector associations, civil society organisations, and international development partners. The Ministry of National Development Planning/Bappenas and GIZ also signed a Project Cooperation Agreement for InCircular, which will support the implementation of Indonesia's Circular Economy Roadmap & Action Plan through strengthening the regulatory framework, increasing capacity, strengthening coordination across stakeholders, and improving waste management systems in selected provinces and districts or cities.

Deputy Minister of Food, Natural Resources and Environment at the Ministry of National Development Planning/Bappenas, Leonardo A.A. Teguh Sambodo, emphasised Indonesia's commitment to accelerating the transformation towards a circular economy as outlined in the Circular Economy Roadmap and Action Plan 2025-2045. ‘Today, we are gathered in a great opportunity to start a new Indonesia-Germany collaboration in the field of circular economy, namely circular economy in Indonesia or InCircular. This five-year collaboration will not only be implemented at the national level, but also in three pilot provinces: East Java, Bali, and Jakarta,’ explained Deputy Teguh.

Indonesia remains committed to tackling waste pollution and promoting the circular economy. Various policies, such as the closure of open dumping landfills, plans to implement mandatory Extended Producer Responsibility (EPR), green industry standards, and the construction of waste-to-energy facilities, underscore the government's efforts to accelerate the circular economy and improve waste management.

Head of Division Southeast Asia German Federal Ministry for Economic Cooperation and Development (BMZ) Andreas Foerster emphasised that waste management reform and strengthening the circular economy are important for improving resource efficiency and promoting economic growth, although they require planning and time to be sustainable. "Germany is home to various companies that are market leaders in waste management and recycling efforts. Therefore, we are very interested in supporting the circular economy sector and see great opportunities in bilateral cooperation between our countries. Germany is home to leading companies in the field of waste management and recycling. Therefore, we are very interested in strengthening bilateral cooperation in advancing the circular economy," explained Andreas.

For decades, Indonesia and Germany have been cooperation partners in advancing waste management and the circular economy through financial and technical cooperation, including through the German Development Bank (KfW) and GIZ. This collaboration includes capacity building for central and regional governments, policy and regulation development, private sector engagement, and infrastructure planning. Going forward, the InCircular Project will serve as a platform to align, harmonise, and strengthen Indonesia and Germany's shared priorities in promoting the national circular economy agenda. "Industry collaboration and regional capacity building must go hand in hand to drive innovation and equitable progress. Ultimately, lasting change can only be achieved through the genuine involvement of stakeholders, uniting all sectors towards a shared vision of circular and resilient growth for Indonesia and for the earth. And InCircular will be the example," concluded Deputy Teguh.