Navigating Indonesia's EPR Mandate: A 2025 Guide for Businesses

Extended Producer Responsibility (EPR) isn’t new globally, but its rules are starting to tighten in Indonesia. The government’s message is pretty clear: if you’re putting packaging, plastics, or other difficult-to-dispose-of materials into the market, you’re also responsible for what happens when people are done with them.

For businesses, this is more than just another compliance box to check. Done right, it can change how you source materials, manage supply chains, and even find new revenue streams in what’s becoming a much more circular economy. Done wrong, it can quickly become an unwanted string of penalties, rising costs, and damaged reputations.

This guide outlines the key things to know in 2025, including where the rules stand, which deadlines matter, how they impact different players, and where the opportunities actually lie.

Indonesia’s EPR Requirements Explained

At the heart of the policy is the principle of accountability. Businesses that produce, import, or sell packaged goods are expected to take responsibility for the entire lifecycle of that packaging. That means funding, organising, or directly handling collection, recycling, and safe disposal.

This is largely mandated under the Ministry of Environment and Forestry Regulation No. 75/2019 (PermenLHK No.75/2019) and is being enforced progressively, with a deadline around submission of waste reduction roadmaps and implementation of take-back recycling programs.

The focus areas are plastics, single-use materials, and packaging that typically end up in landfills or the ocean. Under Indonesia’s model, producers cannot simply pass the cost onto someone else or ignore where their products ultimately end up. They need to show a measurable plan, targets for waste reduction, actual take-back schemes, and proof that recycling or recovery is happening.

Think of it as a shift from “out of sight, out of mind” to “if you put it into the market, you own it until it’s dealt with.”

Compliance Deadlines and Phased Implementation

EPR in Indonesia isn’t a one-shot change. It’s phased, giving businesses some breathing space while still applying pressure to get systems in place.

2023–2024

Large producers were expected to set up reporting systems, baseline their packaging volumes, and submit roadmaps.

2025–Present Day

Full compliance kicks in. By now, companies are expected to hit reduction and recycling targets, with annual reports verified against government requirements.

2026 and Beyond

Enforcement tightens, penalties increase, and more product categories will likely be added.

If you’re only starting to think about this now, you’re late, but not out of time. The government is still providing room for industry collaboration, and there are shared platforms and partners to help businesses catch up.

How EPR Impacts Different Business Stakeholders

EPR doesn’t hit everyone the same way.

First, producers and importers tend to carry the heaviest load. Responsibility for packaging design, materials choice, and funding waste management sits on their shoulders.

Next, retailers, while not always directly liable, are under pressure from consumers and regulators to stock products that meet EPR requirements. Many also tend to participate in take-back schemes.

As for waste collectors and recyclers, this is where opportunities grow. More demand for reliable recovery, sorting, and recycling means new contracts, better funding, and expanded infrastructure.

Last but not least, consumers, while not officially part of compliance, their habits directly affect how successful these programs are. Businesses that make participation easy (clear labelling, easy return points) stand to gain loyalty.

Common Challenges in EPR Compliance

No one’s pretending this is straightforward. Businesses run into the same sticking points over and over again, such as: 

Data gaps

Many don’t know how much packaging they’re putting into circulation, let alone what happens to it after.

Supply chain complexity

Importers and smaller producers often depend on global suppliers who aren’t aligned with Indonesia’s rules.

Costs

Collection, sorting, and recycling all require funding, and it’s not cheap.

Infrastructure gaps

In many regions, the recycling network is still patchy. This means that businesses end up shouldering more of the logistics than they bargained for. 

These challenges aren’t insurmountable, but they do require planning. Businesses that treat EPR like a side admin task tend to struggle the most.

Business Opportunities in the Circular Economy

Here’s the upside: compliance doesn’t just protect you from penalties. It opens doors.

New materials markets are emerging, with demand for recycled inputs going up. Businesses that source or even produce recycled materials early will have an edge. Brand positioning is another advantage. Customers, especially in urban centres, are increasingly choosing companies that show real sustainability commitment. EPR compliance can be a proof point, not just a legal checkbox.

Operational efficiency also improves. Reducing packaging, designing for re-use, and standardising materials often cut long-term costs. And partnerships are becoming more common, with more producers working together to fund shared recovery schemes, which spreads costs and builds efficiency.

How Re>Pal Supports EPR Compliance

This is where a partner like Re>Pal comes in. Our model strategically turns waste plastics into reusable shipping pallets, directly addressing the heart of EPR, i.e., reducing reliance on virgin materials and extending product life cycles.

We not only provide a recycled, durable alternative to traditional wooden or plastic pallets, but we also help businesses close the loop. By using Re>Pal’s pallets, companies like yours can demonstrate compliance with EPR principles, ultimately showcasing waste diversion, material reuse, and measurable impact.

If you’re looking to meet targets without reinventing the wheel, aligning with a solution like ours can tick multiple boxes at once: compliance, cost savings, and sustainability credentials.

The Future of EPR in Indonesia

EPR isn’t going away anytime soon; it’s expanding. As systems mature, expect broader categories to fall under the rules, tighter audits, and more collaboration between government, industry, and recyclers. International players in Indonesia will also face increasing alignment pressures with global standards.

For businesses, the best approach isn’t just to comply, it’s also to lead. Companies that treat EPR as a growth opportunity rather than a nuisance will be better positioned in the market over the next decade.

Partner with Re>Pal Today

Indonesia’s EPR mandate is here to stay. The question isn’t whether your business will adapt, but how fast. With deadlines now in full effect, waiting will only cost more, financially and reputationally.

At Re>Pal, we offer a practical, proven solution that fits straight into your supply chain, helping you not just meet compliance but also move ahead of the curve.

Have questions about EPR compliance or sustainable pallet solutions? Chat with our team directly on WhatsApp at +62343740100 or send us an email at infore-pal.com.