The challenge Our planet"s resources are limited, and environmental pollution is on the rise. The OECD projects that plastics and packaging consumption will nearly double by 2050, underscoring the urgent need to transition from a linear "take-make-dispose" economy to a circular one. Our predominant linear model depletes finite resources, generates escalating waste volumes, and strains ecosystems, with only 9% of plastic waste globally being recycled as per UNEP reports. A circular economy (CE), on the other hand, emphasises on resource efficiency through reuse, recycling, and recovery, offers a sustainable alternative to mitigate environmental degradation and optimise material lifecycles. In Indonesia, where local governments struggle with providing waste management services and infrastructure that needs to keep pace with rapid urbanisation and consumption growth, adopting circular principles is critical to addressing mounting environmental and economic challenges. Extended Producer Responsibility (EPR) is pivotal in operationalising a circular economy by enforcing the Polluter Pays Principle (PPP), compelling producers to internalise the costs of managing their products" end-of-life waste. By implementing a dual system for packaging and other waste streams, EPR shifts the financial burden from overburdened municipal budgets to producers, incentivising eco-design and efficient waste management. In Indonesia, where inadequate financing hampers effective waste collection and processing, resulting in over 60% of plastic waste being mismanaged (World Bank, 2021), EPR offers a mechanism to secure sustainable funding and enhance operational capacity, ensuring that waste is managed responsibly and diverted from landfills, rivers, and oceans. Our approach InCircular supports the implementation of Indonesia"s Circular Economy Roadmap and National Action Plan 2025-2045 (Bappenas, 2024) which emphasises circularity for key sectors to address climate change, biodiversity loss, pollution, and enhancing resource efficiency. By fostering multi stakeholder collaboration among government, private sector, and civil society to develop EPR frameworks, the project supports the Indonesian government"s objective of creating inclusive, evidence-based policies that strengthen economic resilience and sustainable resource management. InCircular aims to unite a diverse coalition of stakholders to jointly develop strategies, policies, and an operating system that fit to the Indonesian context. By fostering stakeholder dialogue and leveraging German and global best practices, the project seeks to deliver actionable policy recommendations to the Indonesian government, paving the way for systemic change in waste management financing and operations while promoting a circular economy that benefits both the environment and society. InCircular works towards 5 outputs: 1. Support the coordination of the implementation of the Circular Economy Roadmap and Action Plan; 2. Enhance regulatory frameworks for EPR and selected material streams (packaging, residual waste, e-waste); 3. Strengthen collaboration with industry partners for the transition to a Circular Economy; 4. Improve waste management in selected provinces and municipalities; 5. Advance Green/Sustainable Public Procurement (G/SPP) for selected goods. The benefits InCircular will address crucial challenges in policymaking to make polluters pay. Thereby, it creates a new income stream to further transform waste management financing on local and national level which would enhance economic growth and activities in a systemically underfunded sector. This will alleviate public budgets, reduce pollution and create economic opportunities within material value chains.

10006175 - Advancing Regional Circular Economy in Indonesia

The contractor will be responsible for the implementation of Output 4: "The technical capacities of provincial and municipal administrations to plan and report on measures in waste management and circular economy have been strengthened", and achieving the Module Objective Indicator 3 and Output Indicators 4.1 and 4.2 by implementing the activities, producing the deliverables and fulfilling corresponding milestones as defined within these Terms of Reference. The overall objective of the tendered services is to provide high-quality technical advisory and capacity development support for the implementation of the project "InCircular: Promoting a Circular Economy in Indonesia". The service provided by the contractor will support the implementation of circular economy principles through enhancing waste data collection and transfer, improving local governance and financing, EPR implementation, by conducting capacity building, material flow analysis, stakeholder engagement and dialogue, guiding the improvement of regional circular economy implementation, as well as the establishment of EPR pilots in pilot provinces. In addition, the contractor will provide ongoing technical support on waste management to project municipalities. By fostering multi-stakeholder collaboration and institutional engagement and capacity, the contractor will help establish the conditions necessary for a transition towards more circular and inclusive economy in Indonesia. For the preparation of the delivery of Output 4, GIZ has already started implementation in a preparatory phase preparing provincial stakeholder mapping and analysis, preliminary packaging waste and residual waste flow analysis and a cities selection in close coordination with national and provincial partners. During project preparation it was anticipated that activities for Output 4 will be conducted in East Java and potentially in Bali. Expected Outcomes Public and private sector stakeholders in selected pilot municipalities in project provinces will be better equipped to independently plan, implement, and report data on waste management, as well as respond to governance prerequisite requirements for implementing circular economy initiatives and EPR schemes. Main outcomes of the contract are aligned with the following project indicators and are the following: 1. Output indicator 4.1: 10 partner municipalities in the pilot provinces of East Java and Bali have shared digitalised data on recycling of packaging waste based on uniform standards with the national level (by 12/2028). 2. Output indicator 4.2: 12 project proposals are developed by partner municipalities on expanding existing waste treatment plants in East Java and Bali to enable them to produce RDF (by 12/2028). 3. Module objective indicator 3: 1 implemented approach by public and private actors to improve the collection and recycling of packaging in the East Java and Bali (by 06/2028).