weinar : a startegy overview on how indonesia’s plastis&ruer industry … · 2020-07-09 ·...
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P l a s t i c R e c y c l i n g I n d u s t r y U p d a t e
IND
ON
ES
IAN
PL
AS
TIC
S R
EC
YC
LE
RSWILSON PANDHIKA
GENERAL SECRETARY - IPR
WEBINAR : A STARTEGY OVERVIEW ON HOW INDONESIA’S PLASTICS&RUBBER INDUSTRY RECOVER POST COVID-19WEDNESDAY, 8TH JULY 2020
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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
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PLASTIC RECYCLING INDUSTRY CONDITION
02
Weak Market Demand
Supply Chain Disruption
Impacts
Expected Support
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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
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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
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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
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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
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07
SUPPLY CHAIN DISRUPTION
Average drop in the amount of plastics waste absorbed by recycling industry in Indonesia during the months March – May 2020
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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.
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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.
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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
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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
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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
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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
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CONTACT US
ADDRESSJL. SURABAYA NO.11
MENTENG – JAKARTA PUSAT
WEBSITEWWW.PLASTICSRECYCLERS.ID
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