Indonesia Food Waste Management Market

Indonesia Food Waste Management Market Overview

• The Indonesia Food Waste Management Market is valued at USD 1.6 billion, based on a five-year historical analysis and its proportion within the broader Indonesia waste management market, which was valued at about USD 15.11 billion for waste management services including collection, recycling, waste-to-energy, and landfill operations. This growth is primarily driven by increasing urbanization, rising consumer awareness regarding sustainability, and government and development-partner initiatives aimed at reducing food loss and waste along the supply chain, as highlighted by national studies under the Low Carbon Development Indonesia (LCDI) framework. The market is also supported by the growing food and beverage industry and food service sector, which generate significant organic waste that requires collection, treatment, recycling, composting, and valorization solutions.
• Key cities such as Jakarta, Surabaya, and Bandung dominate the market due to their high population density, concentration of supermarkets, hotels, restaurants, catering services, and large wet markets, which together generate high volumes of food and organic waste. These urban centers are also focal points for provincial and city-level waste management policies, including source-separation pilots, community-based composting, and waste-to-energy or co-processing projects implemented with private operators and development agencies, making them critical players in the food waste management landscape.
• In 2021, the Ministry of National Development Planning (BAPPENAS) launched the “Food Loss and Waste Reduction Roadmap (2021–2030)” and associated action plans under Indonesia’s Low Carbon Development Initiative, which guide national and local governments in planning and implementing food loss and waste reduction programs across production, processing, distribution, and consumption stages. In addition, municipal organic and food waste handling is framed within Law No. 18 of 2008 on Waste Management and its implementing Government Regulation No. 81 of 2012 on Management of Household Waste and Waste Similar to Household Waste, which require regional governments to organize waste reduction and handling, including composting and other forms of processing for organic fractions. These policy instruments support Indonesia’s voluntary commitment, announced in international forums, to reduce food loss and waste significantly by the end of this decade through improved collection, recycling, and composting initiatives at municipal level.

Indonesia Food Waste Management Market Segmentation

By Waste Type:The food waste management market can be segmented based on the type of waste generated. The primary categories include cereals, dairy and dairy products, fruits and vegetables, meat and poultry, fish and seafood, oilseeds and pulses, roots and tubers, and other waste types. Each of these categories contributes differently to the overall waste generated, with fruits and vegetables, roots and tubers, and cereals typically accounting for a significant portion of edible food loss and waste in Indonesia due to their high consumption volumes and perishability along the supply chain.

By Service:The market can also be segmented based on the services provided for food waste management, which include collection, transportation, disposal, and recycling. Each service plays a crucial role in the overall waste management process, with collection and recycling being particularly vital for reducing the environmental impact of food waste. Collection and transportation services are increasingly integrated with decentralized solutions such as community composting, small-scale material recovery facilities, and biogas units, while recycling and treatment services cover compost production, animal feed, co-processing in cement kilns, and other waste-to-energy options.

Indonesia Food Waste Management Market Competitive Landscape

The Indonesia Food Waste Management Market is characterized by a dynamic mix of regional and international players. Leading participants such as Waste4Change, Greeneration Indonesia, PT Reciki Solusi Indonesia (Reciki), PT Solusi Cipta Integrasi (EwasteRJ & organic waste services), PT Solusi Bangun Indonesia Tbk (Geocycle Indonesia), PT Pembangunan Jaya Ancol Tbk (Integrated Waste Management & Composting), PT Jakarta Propertindo (Perseroda) – Food and Organic Waste Handling, PT Unilever Indonesia Tbk – Food Waste Reduction & Valorization Programs, PT Nestlé Indonesia – Food Loss and Waste Management Initiatives, PT Indofood Sukses Makmur Tbk – Food Waste Reduction and By?product Utilization, PT Charoen Pokphand Indonesia Tbk – Conversion of Food Waste to Animal Feed, PT Pupuk Kalimantan Timur (Pupuk Kaltim) – Organic Fertilizer from Food and Organic Waste, PT Pupuk Indonesia (Persero) – Compost and Organic Fertilizer Programs, PT Dharma Satya Nusantara Tbk – Biogas and Organic Waste-to-Energy Projects, PT Astra Agro Lestari Tbk – Organic Residue and Food Waste Valorization contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia Food Waste Management Market Industry Analysis

Growth Drivers

• Increasing Urbanization:Indonesia's urban population is projected to reach 70% by in future, up from 57% in in future, according to the World Bank. This rapid urbanization leads to higher food consumption and, consequently, increased food waste. Urban areas generate approximately 60% of the country's total waste, with food waste constituting around 50% of that. The growing urban population necessitates improved waste management solutions, driving demand for effective food waste management systems.
• Government Initiatives for Waste Reduction:The Indonesian government has committed to reducing waste by 30% by in future, as outlined in the National Waste Management Policy. This initiative includes investments of approximately IDR 1 trillion (around USD 70 million) in waste management infrastructure. Such government support fosters the development of food waste management technologies and encourages private sector participation, creating a conducive environment for market growth.
• Rising Environmental Awareness:A significant increase in environmental awareness among Indonesian citizens has been observed, with 65% of the population acknowledging the importance of sustainable practices in waste management. This shift is supported by various campaigns and educational programs, leading to a growing demand for eco-friendly waste management solutions. The heightened awareness is expected to drive investments in food waste management technologies, promoting sustainable practices across urban centers.

Market Challenges

• Lack of Infrastructure:Indonesia faces significant infrastructure challenges in waste management, with only 30% of urban areas equipped with adequate waste collection systems. The absence of proper facilities for food waste processing leads to increased landfill usage, which is projected to rise by 10% annually. This lack of infrastructure hampers effective food waste management and poses a barrier to achieving national waste reduction targets.
• Limited Public Awareness:Despite rising environmental consciousness, public awareness regarding food waste management remains low, with only 40% of the population actively participating in waste segregation practices. This limited engagement results in inefficient waste management processes and contributes to the high volume of food waste ending up in landfills. Addressing this challenge is crucial for improving overall waste management effectiveness in Indonesia.

Indonesia Food Waste Management Market Future Outlook

The future of Indonesia's food waste management market appears promising, driven by increasing urbanization and government initiatives aimed at waste reduction. As the population continues to grow, the demand for innovative waste management solutions will likely rise. Additionally, the integration of smart technologies and sustainable practices will enhance efficiency in waste processing. Collaborative efforts between the government, private sector, and NGOs will be essential in overcoming existing challenges and capitalizing on emerging opportunities in the market.

Market Opportunities

• Expansion of Recycling Programs:The Indonesian government aims to increase recycling rates to 50% by in future, presenting a significant opportunity for businesses involved in food waste recycling. With an estimated 20 million to 30 million tons of food loss and waste generated annually across the supply chain, enhancing recycling initiatives can lead to substantial economic and environmental benefits, fostering a circular economy.
• Development of Waste-to-Energy Projects:Indonesia has the potential to generate approximately 1,000 MW of energy from food waste through waste-to-energy projects. This opportunity aligns with the government's renewable energy targets, encouraging investments in technologies that convert food waste into energy, thus addressing both waste management and energy needs simultaneously.