No. 28/171/DKom
Waste management presents both a challenge and an opportunity in driving sustainable economic transformation. The National Waste Management Information System recorded waste generation of 24.8 million tons per year in 2025 across 244 regencies/cities, of which around 65% of the waste not being properly managed. Such conditions create opportunities for micro, small and medium enterprises (MSMEs) to play a role in the circular economy, ranging from producing environmentally friendly products and processing waste to becoming part of circular supply chains. That was the key takeaway of the Sustainable Talk, entitled 'Waste Management: Environmentally Friendly Waste Processing with Added Value'. The discussion was part of the Karya Kreatif Indonesia (KKI) 2026 series of events held at JICC, Jakarta, on 23rd August 2026. The event was opened by the Deputy Governor of Bank Indonesia, Ricky Perdana Gozali, and Regional Secretary of Jakarta Provincial Government, Uus Kuswanto.
Deputy Governor Ricky stated that waste management must transition from a 'take-process-dispose' model towards the circular economy. The value of products and quality of materials should be maintained for as long as possible. “We need to progress from addressing waste as a problem, towards managing waste, and ultimately transforming waste into something with added value," he stated. This transformation creates opportunities for new value chains involving industry, MSMEs and the public through waste processing and recycling, resource reuse and the development of circular business models. For MSMEs, applying sustainability principles not only contributes to environmental preservation but also improves efficiency, creates added value and new business opportunities, and strengthens competitiveness within industrial supply chains.
Concrete measures taken by Bank Indonesia to strengthen inclusive and sustainable MSMEs include preparing the Sustainable MSME Business Model Guidelines. In addition, Bank Indonesia facilitates the replication of waste processing into value-added products and organises the Inclusive and Sustainable Entrepreneur Pioneer Competition (PERWIRA INTAN), a business model innovation competition in sustainable agriculture. In 2026, the competition attracted business innovations supporting food security, while prioritising economic, social and environmental impacts. A total of 1,950 participants from the business community, academia and public registered for the competition. Of those, the 200 best proposals will receive capacity building and coaching. Subsequently, the five best innovations will have the opportunity to undergo business matching, collaborate with Bank Indonesia and participate in comparative studies in countries with advanced agricultural sectors.
Bank Indonesia also applies sustainability principles through circular MSMEs in Rupiah currency management. Bank Indonesia collaborates with MSMEs to process shredded banknote waste, generated from the destruction of banknotes no longer fit for circulation, into valuable souvenirs and raw material for producing biochar as a soil amendment.
Representing the Governor of Jakarta, the Regional Secretary of Jakarta Provincial Government, Uus Kuswanto, took the opportunity to stress the importance of collaboration between the Government, business community and public in strengthening waste management at source. The Jakarta Provincial Government is encouraging behavioural change and public participation through Gubernatorial Instruction No. 5 of 2026, which requires waste to be separated into four categories, namely organic, inorganic, hazardous and toxic (B3), as well as residual waste. The measure aims to reduce the burden on downstream waste management.
The Sustainable Talk featured Kurniawan Agung from the Inclusive and Green Economy and Finance Department at Bank Indonesia, Dudi Gardesi Asikin from the Environmental Agency of the Jakarta Provincial Government, and M. Bijaksana Junerosano from Waste4Change. The discussion addressed circular economy practices for MSMEs, ranging from waste separation and management to transforming waste into value-added products. The event was attended by MSMEs, associations, government ministries/agencies, non-governmental organisations, environmental communities and the general public.
Bank Indonesia encourages all stakeholders to strengthen synergy in building an increasingly inclusive and sustainable business ecosystem. In line with the spirit of KKI 2026, Beudaya MeusareSare, Empowered, Together, the circular economy is expected to transform environmental challenges into new opportunities and economic value, while strengthening the competitiveness of Indonesian MSMEs.
Jakarta, 23rd August 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
