Environment and Circular Economy

Denmark and Indonesia have been engaged in a strategic sector cooperation (SSC) within circular economy and solid waste management since 2018. The objective of the partnership is to support circular economy and more effective waste management in Indonesia, to accelerate a green transition and reduce negative impacts on the environment, livelihoods, economy and public health. 

Indonesia produces more than 56 million tons of waste annually. With a population of 290 million people and an annual growth rate of 5 pct., the annual waste production is projected to reach approx. 82 million tons of waste by 2045. Today, approximately 39 pct. of the waste is managed properly, while approximately 61 pct. remains unmanaged. Of the total waste generated, around 22 pct. is disposed of at landfills using open-dumping, while 39 pct. is released into the environment through illegal practices such as open burning, dumping in the environment or disposal into waterways or the sea. 

As waste represents significant economic opportunities for innovative businesses, the partnership focuses on advancing circular economy solutions. In a circular economy, waste is no longer the end of consumption, but the beginning of a new cycle, where materials are kept in use and their value and potential as resources are retained.

Strategic Sector Cooperation

The SSC partnership on circular economy and solid waste management between Denmark and Indonesia was launched in 2018, with the first phase of the cooperation completed in June 2023. A second phase was initiated in July 2023 until June 2026. The third and final phase intends to span for a three-year period from 2026 until 2029.

Through the SSC partnership between the Indonesian Ministry of Environment (KLH) and the Danish Energy Agency (prev. the Danish Environmental Protection Agency), the Danish Embassy in Indonesia is pleased to facilitate and support circular economy and waste management policies and initiatives in Indonesia.

Activities in the cooperation include, among others, the following:

• • • Policy dialogue on green transition, circular economy and solid 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 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.
    • Exchange of knowledge and lessons learned with green transition and solution as well as recycling, as part of circular economy and solid waste management, with national government authorities, other sector ministries and local authorities in Indonesia and Denmark, as well as international partners, civil society organisations, universities and private sector. 

The strategic sector cooperation in Indonesia is financed by the Danish Ministry of Foreign Affairs (MFA) under a framework agreement between the Danish MFA and the Danish Ministry of Climate, Energy and Utilities.