Waste remains a serious issue for global society, including Indonesia. The government has advocated a circular economy as one solution to this problem.
Dr. Luluk Lusiantoro, a lecturer at the UGM Faculty of Economics and Business (FEB UGM) and an expert in circular economy, emphasizes the importance of changing the mindset of all parties involved in waste management, including consumers and businesses or companies as producers.
He said understanding the waste issue is not just about waste management but the entire system.
“So when discussing waste, it must be seen from a systemic perspective. It’s not just about waste on the streets or in landfills, but also about how it is managed and its output, when managed properly, does not leave waste behind,” Dr. Lusiantoro explained on Thursday (Mar. 21) at FEB UGM.
Dr. Lusiantoro stated that a circular economy means waste generated from consumption returns to production so that no waste is produced.
A circular economy can start with simple actions such as sorting waste into 3R (reduce, reuse, recycle) at its source, including waste generated at the household level, public facilities as consumers, and companies as producers.
“If you want to manage it properly, you have to sort waste at its source; that’s the basics,” he said.
However, the behavior of sorting waste is still a challenge. He pointed out that many households need to be made aware of waste sorting. This situation arises due to the lack of incentive systems for those who successfully sort waste.
Similarly, many companies, industries, and public facilities have yet to sort waste and simply hand it over to waste management contractors.
Therefore, Dr. Lusiantoro believes that besides promoting education on waste sorting, incentives must be created to encourage behavior change in waste sorting, both at the household and industrial levels.
It is hoped that landfills will no longer be an option for the public. One good practice is incentivizing individuals or households to sort waste, which has been implemented in Panggungharjo Village, Yogyakarta.
“Households that sort waste will receive incentives from waste managers. Waste with economic value will be assessed, and incentives will be provided accordingly. The result can be used to reduce waste collection fees, while those who do not sort waste will automatically have higher waste collection fees,” he explained.
Dr. Lusiantoro also mentioned that it is necessary to give education to waste collectors. Until now, many still practice mixing sorted waste back together while in waste collection vehicles. This results in re-sorting processes at 3R waste processing sites.
“The flow, if seen from a circular economy or supply chain perspective, is not just waste management. It’s about how waste from a business’s products becomes the responsibility of consumers and the producing company. Producers are responsible for the waste generated even after consumption, returning it to the production system,” explained the Management Department lecturer.
He outlined that these steps take work. He believes good infrastructure must be developed to handle waste products efficiently. He gave an example of a circular economy that can be achieved by creating products from waste for further use. Another example is practicing mindful consumption, which means consciously considering the consequences of consumption.
Practicing this concept involves assessing the urgency of a product, whether it is a necessity or just a desire. Although it is not easy, society should adopt the concept of mindful consumption. Excessive consumption depletes resources, leading to a scarcity of natural resources.
“Consumers need to be aware so that their consumption can be limited to what is needed,” added the man who initiated the circular economy education platform ekonomisirkular.id.
However, when consumers implement mindful consumption, it impacts the broader economy. Therefore, business models can also adapt. From a business perspective, entrepreneurs or producers are expected to change their business models from ownership-based to rental models.
For instance, household tools that are only occasionally used and mostly stored ultimately generate waste. With a rental business model, product ownership remains with the company so that when the lease expires, the product returns to the company to be rented or recycled. Companies are expected to seize opportunities from this circular economy paradigm.
Dr. Lusiantoro added that the government and NGOs also play a crucial role in supporting the country’s implementation of a circular economy. He believes there is a need for policy design or regulations to encourage this practice.
Currently, there are no binding policies in Indonesia, only recommendations related to implementing a circular economy to address waste issues.
“There needs to be a design for this. For example, the government requires businesses to have good waste management standards and sustainable reporting. The implementation of this circular economy can start from large-scale companies,” he said.
Furthermore, Dr. Lusiantoro stated that the design developed needs to be extensive. The government needs to educate the public about the circular economy. This can be done early on, starting from elementary education, for example, by developing a specific lesson on the circular economy to influence the public’s thinking on a broader scale.
“Behavior needs to start changing so that it will quickly change the economic system to be more circular,” Dr. Lusiantoro concluded.
Author: FEB UGM
Editor: Ika
Image: Freepik.com