US-ASEAN Business Council Urges Regional Alignment to Advance Southeast Asia’s Circular Economy

The goal is to develop practical, investment-friendly Extended Producer Responsibility (EPR) systems specifically designed to optimize the lifecycle management of packaging products across the region.

Implementing effective EPR systems in Southeast Asia presents unique challenges, including the complex integration of the region's vast informal waste sector, limited institutional capacity and support, and persistent funding limitations. Furthermore, the scarcity of reliable waste data significantly hinders target setting and performance measurement, making it difficult to gauge the true impact of current efforts.

"Clear, predictable, government-mandated and industry-run EPR frameworks are essential for scaling circular economy solutions across ASEAN," said Nugraheni Utami, Chief Country Representative for Indonesia, USABC. "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."

As ASEAN member states move beyond traditional 'take-make-dispose' models, the USABC underscores that a unified approach is paramount. Regionally aligned standards instill confidence in companies to invest in local recycling infrastructure, assured by clear and consistent rules that also encourage the seamless movement and exchange of materials across markets.

"Malaysia's upcoming EPR framework is an opportunity to build a practical, multi-material system that drives environmental impact and investment certainty," added Tina Jamaluddin, Chief Country Representative for Malaysia, USABC. "Mutually recognized principles across ASEAN, paired with national flexibility, help reduce fragmentation and support efficient implementation across the region."

Industry leaders are already demonstrating commitment. "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, together with our bottling partners, we collaborate with governments, industry, recyclers, and NGOs to strengthen local recycling and collection systems and infrastructure. Our efforts include advocating for well-structured EPR systems in Malaysia and Indonesia, and well-designed Deposit Return Systems (DRS) in Singapore. Through ongoing investments and partnerships, we are committed to helping reduce plastic packaging waste."

Crucial to these efforts are key partners like Mahija Foundation (Mahija Parahita Nusantara) and innovative recycling facilities such as Hiroyuki Industries in Malaysia and Amandina Bumi Nusantara in Indonesia. These entities provide the foundational infrastructure and technical capabilities vital for robust national EPR systems.

"A circular economy must be inclusive and ethical. At Mahija Foundation, we are implementing the Responsible Sourcing Initiative to ensure that the transition from informal to formal waste management puts people first", said Ardhina Zaiza, Chairwoman of Mahiija Foundation. "By embedding human rights and fair labor standards directly into the supply chain, we provide the transparency that partners like Coca-Cola Europacific Partners (CCEP) and Amandina need. This ensures that the high-quality material entering the recycling loop is not only environmentally sustainable but socially responsible, uplifting the waste pickers who are the heroes of this ecosystem."

While Southeast Asia's journey to a circular economy has its inherent challenges, this collaborative momentum demonstrates its immense possibilities. By uniting industry leaders, policymakers, and local recycling innovators, the region is actively constructing a practical, investment-focused roadmap. This collective action is the key to overcoming obstacles and transforming the lifecycle of packaging for a more sustainable and inclusive Southeast Asia, pioneering industry-led transformation towards efficient material collection, recycling, and reuse.

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About US-ASEAN Business Council

Since 1984, the US-ASEAN Business Council has been the premier advocacy organization for U.S. corporations operating within the dynamic Association of Southeast Asian Nations (ASEAN). Worldwide, the Council's membership of nearly 170 companies generates almost US$7 trillion in revenue and employs more than 14.5 million people. Today our members include the largest U.S. companies conducting business in ASEAN and range from newcomers to the region to companies that have been working in Southeast Asia for more than 100 years. The Council has nine offices around the globe, in Washington, DC; New York, NY; Bangkok, Thailand; Hanoi, Vietnam; Jakarta, Indonesia; Kuala Lumpur, Malaysia; Manila, Philippines; Singapore; and Yangon, Myanmar.