November 29, 2025

Indonesia, Germany Launch InCircular Project to Accelerate National Circular Economy Transition

Transition

Jakarta, The Gulf Observer: Indonesia’s National Development Planning Ministry/National Development Planning Agency (PPN/Bappenas) and Germany’s Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH have officially launched the InCircular Project, a new initiative aimed at strengthening Indonesia’s transition toward a circular economy.

During the launch ceremony, Bappenas and GIZ signed a cooperation agreement to support the implementation of Indonesia’s Circular Economy Roadmap & Action Plan, focusing on enhancing regulatory frameworks, improving cross-stakeholder coordination, strengthening institutional capacity, and upgrading waste management systems in selected regions.

“The five-year collaboration will not only be implemented at the national level, but also in three pilot provinces: East Java, Bali, and Jakarta,” said Bappenas official Leonardo AA Teguh Sambodo in a statement issued on Friday.

The initiative forms part of Germany’s broader development cooperation under the Federal Ministry for Economic Cooperation and Development (BMZ).

Sambodo explained that the InCircular Project will cover three priority waste streams:

  • Packaging waste in East Java
  • Residue waste in Bali
  • E-waste in Jakarta

He expressed confidence that the programme would help boost Indonesia’s economic growth, generate green jobs, and advance environmental sustainability.

Indonesia and Germany have a long history of cooperation in the areas of waste management and circular economy, involving both financial and technical support through institutions such as the German Development Bank (KfW) and GIZ. Collaborative efforts have included capacity building, policy development, private sector engagement, and infrastructure planning.

Going forward, the InCircular Project is expected to become a platform for aligning and harmonising Indonesia–Germany priorities in advancing the national circular economy agenda.

Sambodo reaffirmed Indonesia’s commitment to accelerating its circular economy transformation as outlined in the Circular Economy Roadmap and Action Plan 2025–2045.

Meanwhile, Andreas Foerster, Head of the Southeast Asia Division at BMZ, underlined the importance of waste management reform and circular economy development for improving resource efficiency and fostering sustainable economic growth.

He noted that Germany hosts numerous leading waste-management and recycling companies, contributing to strong potential for bilateral cooperation in the circular economy sector.

Indonesia continues to prioritise tackling waste pollution and expanding circular economy practices through measures such as closing open-dumping landfills, implementing Extended Producer Responsibility (EPR), enforcing green industry standards, and increasing waste-to-energy capacity.

To support coordination efforts, Bappenas will establish a Circular Economy Steering Group responsible for guiding national implementation, ensuring policy coherence across ministries, and providing strategic direction to accelerate the country’s shift toward a circular economy.