As it reinforces USABC, it is the collective action-from ministries to municipalities, from multinationals to micro-enterprises-that provides the leverage point for a more sustainable and inclusive circular economy for ASEAN.
JOHOR, MALAYSIA & JAKARTA, INDONESIA — The US-ASEAN Business Council (USABC) is rallying governments and industry to coordinate on Extended Producer Responsibility (EPR) for packaging, arguing that regionally aligned, government-mandated and industry-run frameworks are essential to scale a circular economy across Southeast Asia. “Clear, predictable, government-mandated and industry-run EPR frameworks are essential for scaling circular economy solutions across ASEAN,” said Nugraheni Utami, USABC Chief Country Representative for Indonesia. “Regional alignment on core principles, supported by transparent reporting, creates a level playing field for industry and investment in the infrastructure needed for effective, inclusive EPR systems to drive circular outcomes for packaging.”
RELEVANT SUSTAINABLE GOALS
The practical hurdles: informal sector, capacity gaps, and scarce data
USABC notes that effective EPR in Southeast Asia faces distinct challenges: integrating a vast informal waste sector, limited institutional capacity and funding, and scarcity of reliable waste data that hinders target-setting and performance measurement. The Council frames these constraints not as roadblocks but as design conditions for EPR systems that must be inclusive, well-financed, and verifiable.
As ASEAN economies move beyond “take-make-dispose,” common EPR principles—paired with national flexibility—can reduce market fragmentation, encourage cross-border material flows, and give companies the confidence to invest in local recycling infrastructure. “Malaysia’s upcoming EPR framework is an opportunity to build a practical, multi-material system that drives environmental impact and investment certainty,” said Tina Jamaluddin, USABC Chief Country Representative for Malaysia. “Mutually recognized principles across ASEAN, paired with national flexibility, help reduce fragmentation and support efficient implementation across the region.”
Industry signals: capital and coalitions for collection and recycling
Businesses are already stepping in. “Addressing waste management collection and infrastructure challenges is often complex, however Coca-Cola is committed to collective action to accelerate progress,” said Umesh Madhavan, Director, Packaging Sustainability of Coca-Cola. Across Southeast Asia, the company and its bottling partners collaborate with governments, industry, recyclers, and NGOs to strengthen collection and recycling systems—advocating for well-structured EPR in Malaysia and Indonesia and well-designed Deposit Return Systems (DRS) in Singapore. The goal: reduce plastic packaging waste through coordinated investments and partnerships.
USABC highlights the role of frontline partners—Mahija Foundation (Mahija Parahita Nusantara) and innovative recycling facilities such as Hiroyuki Industries (Malaysia) and Amandina Bumi Nusantara (Indonesia)—in providing the infrastructure and technical capabilities vital to robust national EPR systems. “A circular economy must be inclusive and ethical,” said Ardhina Zaiza, Chairwoman of Mahija Foundation. Through the Responsible Sourcing Initiative, Mahija helps transition informal workers into formal systems, embedding human rights and fair labor standards in supply chains. This gives downstream partners such as Coca-Cola Europacific Partners (CCEP)and Amandina the transparency needed to ensure high-quality, socially responsible feedstock—and uplifts waste pickers, “the heroes of this ecosystem.”
The roadmap: align principles, formalize inclusion, unlock capital
The Council’s message is straightforward: unite policymakers, brand owners, recyclers, and civil society around clear EPR rules, transparent reporting, and inclusive systems that recognize and integrate informal workers. Regionally harmonized principles, implemented through country-specific mechanisms, can unlock investment, expand collection, and raise recycling rates—laying the foundation for efficient material recovery and reuse throughout ASEAN.
Southeast Asia’s circular transition is challenging—but collaboration is gaining pace. By aligning standards, backing responsible sourcing, and funding the infrastructure that turns waste into feedstock, the region is constructing a practical, investment-focused pathway to transform packaging lifecycles. As USABC underscores, collective action—from ministries to municipalities, multinationals to micro-enterprises—is the leverage point to deliver a more sustainable and inclusive circular economy for ASEAN.
You may also be interested in :
Taiwan Unveils 2050 Circular Economy Roadmap, Eyes ASEAN Collaboration
