The US-ASEAN Business Council (USABC) is spearheading a major initiative to fast-track Southeast Asia's shift towards a circular economy. The council is actively building bridges between private companies and government bodies. Their primary goal is to create workable and attractive investment frameworks known as Extended Producer Responsibility (EPR) systems. These systems are specifically tailored to improve how packaging products are managed throughout their entire lifecycle in the region.
Overcoming Regional Challenges for Effective EPR
Establishing successful EPR programs in Southeast Asia comes with distinct hurdles. The region's large informal waste sector is complex to integrate, and many areas face limited institutional support and chronic funding shortages. A critical roadblock is the lack of trustworthy waste data, which makes it hard to set clear goals and measure progress accurately.
Nugraheni Utami, the USABC's Chief Country Representative for Indonesia, emphasized the need for clear frameworks. She stated that predictable, government-mandated systems run by industry are crucial for expanding circular economy solutions across ASEAN. Regional agreement on core principles, backed by transparent reporting, creates a fair environment. This encourages investment in the necessary infrastructure for EPR systems that are both effective and inclusive.
Industry Commitment and Collaborative Action
As ASEAN countries strive to move past old linear economic models, the USABC stresses that a unified strategy is essential. Common regional standards give companies the confidence to invest in local recycling facilities. Clear and consistent rules also help materials move smoothly across borders.
Tina Jamaluddin, USABC's Chief Country Representative for Malaysia, highlighted a key opportunity. She noted that Malaysia's forthcoming EPR framework is a chance to build a practical, multi-material system. Such a system can deliver both environmental benefits and certainty for investors. Mutually recognized principles across ASEAN, combined with flexibility at the national level, can reduce fragmentation and support efficient regional implementation.
Major corporations are already stepping up. Umesh Madhavan, Director of Packaging Sustainability at Coca-Cola, acknowledged the complexity of waste management challenges. He affirmed Coca-Cola's commitment to collective action. Across Southeast Asia, the company and its bottling partners work with governments, other industries, recyclers, and NGOs. Their efforts focus on strengthening local recycling and collection systems. This includes advocating for well-structured EPR systems in Malaysia and Indonesia and supporting well-designed Deposit Return Systems (DRS) in Singapore.
Building an Inclusive and Ethical Foundation
Key partners are providing the foundational support needed for these systems. Organizations like the Mahija Foundation (Mahija Parahita Nusantara) and recycling facilities such as Hiroyuki Industries in Malaysia and Amandina Bumi Nusantara in Indonesia offer vital infrastructure and technical expertise.
Ardhina Zaiza, Chairwoman of the Mahija Foundation, underscored the human element of this transition. She explained that a circular economy must be inclusive and ethical. The foundation's Responsible Sourcing Initiative ensures that the shift from informal to formal waste management prioritizes people. By embedding human rights and fair labor standards into the supply chain, they provide transparency for partners like Coca-Cola Europacific Partners (CCEP) and Amandina. This approach guarantees that high-quality recycled materials are not just environmentally sustainable but also socially responsible, improving the lives of waste pickers who are essential to the ecosystem.
While the path to a circular economy in Southeast Asia is fraught with challenges, the current collaborative drive shows significant promise. By uniting industry leaders, policymakers, and local recycling innovators, the region is crafting a practical, investment-focused roadmap. This collective action is the vital key to overcoming obstacles and reshaping the lifecycle of packaging. The ultimate goal is a more sustainable and inclusive Southeast Asia, pioneering an industry-led transformation towards efficient material collection, recycling, and reuse.
About US-ASEAN Business Council: Since 1984, the US-ASEAN Business Council has been the leading advocacy organization for U.S. corporations operating within ASEAN. Its nearly 170 member companies worldwide generate almost US$7 trillion in revenue and employ over 14.5 million people. The Council maintains nine global offices, including in Washington, DC, Bangkok, Hanoi, Jakarta, Kuala Lumpur, Manila, Singapore, and Yangon.
