Recovered Paper

Policy and Regulation

Liana Bratasida

Executive Director of IPPA

Da Nang, October 31st 2019

22 PM

RCP + Pulp

26 PM

RCP 100%

15 PM

Pulp

2 Pulp Mills

6 I

Source: IPPA Directory, 2019

Note:

PM = Paper Mills

I = Integrated Mills

Country of

Imported RCP

EU

UK

USA

Australia

New Zealand

Type of Imported

RCP

Total 2018

(%)

4707.10.00 (OCC) 56

4707.90.00 (MWP) 28

4707.30.00 (ONP) 11

4707.20.00 (SWL) 5

Source: Trade Map, 2019

PULP AND PAPER INDUSTRY & RCP DEMAND

Market value of packaging industry in Indonesia is 6,85 Million

USD, where 28% of total packaging materials segmentation is

dominated by paperboard packaging.

The packaging industry is predicted to grow as 6 – 7% each year.

Source: Indonesian Packaging Federation (IPF)

Paper Product From RCP In Indonesia

(48 Companies, Installed Capacity 8.2 MTon, Production 6 MTon)

Source: IPPA Directory, 2019

RECOVERY RATE RCP IN SOME COUNTRIES

89.2%

Korea

61.2%

Chinese

TaipeiJapan

80.9%

India

38%

Philippine

50%

Thailand

59%

Vietnam

40%

Indonesia

48%

COMPARATION OF RCP STANDARDS IN SOME COUNTRIES

1. ONP

Class B : May not exceed 0.3%

Mix Ratio of Other RCP grades : may

not exceed 1%

2. OCC

Class B : May not exceed 0.3%

Mix Ratio of Other RCP grades : may

not exceed 3%

3. OMG

Class B : May not exceed 0.5%

Mix Ratio of Other RCP grades : may

not exceed 5%

4. Sorted residential old paper &

paperboard & SOP

Class B : May not exceed 0.3%

Note : class A none permitted for all

SEPA → Solid Waste Law

Green Fence Policy

Impurities 3%

Impurities 1.5% & ban

MWP

Impurities 0.5%

Impurities 0.3%

Impurities 0%

2008

2013

2015

2017

2018

2019

2020

Impurities 2%

tentatively

• Binding Materials

(wire, plastic)

• Divider (metals, wood,

plastic, sponge)

• Pallet (wood, plastic,

paper)

• Wrapping materials

(plastic)

Impurities 0.5%

tentatively & ban

MWP

2012

2019

2023

Indonesia pre-shipment inspection by photos, while Thailand/Malaysia/Vietnam don’t need pre-shipment inspection.

WASTEPAPER IMPORT POLICY IN INDONESIA

Non B3 Wastes can be

imported if:

a. Do not come from landfill

activity or not in the form of

garbage;

b. are not contaminated with B3

and/ or B3 Wastes; and or

c. are not mixed with other

waste which is not regulated

in this Regulation of Minister

ARTICLE 4

1. In the case of the imported

Non B3 Wastes proved to

contain B3 Wastes, Non B3

Waste Importer is obliged to

re-export such wastes

maximum 90 (ninety) days

as from goods arrival based

on manifest document(BC.1.1)

ARTICLE 19

Regulation of The Minister of Trade No. 31/2016

concerning Provisions on Importation of Non Hazardous and Toxic Wastes

6 (h) Statement letter from Non B3 Waste Exporter

declaring that :

1. The exported waste is not B3 Wastes; and

2. Willing to be responsible and reaccept Non B3

Wastes that have been exported if such Non B3

Wastes proved as B3 Wastes

6 (i) statement letter from the applicant declaring

that :

1. The imported waste is truly Non B3 Wastes;

and

2. Willing to be responsible and re-export Non B3

Wastes that have been imported if such Non B3

Wastes proved as B3 Wastes

ARTICLE 6

PROBLEM EMERGED

Feb 2019 – August 2019

Many imported RCP

containers are contaminated

with residential (un-sorted)

waste and hazardous waste.

Previously, containers containing

imported RCP were in the green line,

but now all those containers are

categorized in the red line, therefore

Customs need to re-inspect at the port.

DRAFT REVISION OF REGULATION OF THE MINISTER OF TRADE

NO. 31/2016 INCLUDING FOR RCP/WASTEPAPER

More restrictive/stringent import conditions in the revision shall followed, such as :

The criteria should be clean, dry, and homogenous (for paper product

only).

Recommendation from Ministry of Industry and Ministry of Forestry and

Environment are needed.

10% stuffing supervision based on the lowest risk management is now

back to normal inspection (100% where 2 bales randomly need to be re-

opened).

Companies need to install equipment to handle impurities (prohibitive)

materials i.e. incinerator, etc.

1. Cleanliness and homogenous refers to

ISRI standard (Prohibitive material 2%

dan Outthrows material 5%).

2. Moisture content in origin country is

12% while in destination country is 15%.

3. The red line is only for MWP.

4. Decreasing impurity content for 4 years

starts by 2019 with 5% prohibitive and

decreases 1% each year, until 2022 it

achieves 2% prohibitive (ISRI standard).

5. Providing recycled center facility.

IPPA’s PROPOSAL TO THE GOVERNMENT

Registering the

warehouse to comply

international

standards.

Long Term

The compilation of the accreditation and

warehouse certification system is conducted

by KSO that is internationally valid.

Medium Term

Inspections were

conducted at each

warehouse/material

recovery facility.

Short Term

BENEFITS OF RECYCLING

Reduces the amount of material that needs to be landfilled

Reduces the need to deplete resources

Produces significant energy savings compared to virgin

materials, thereby reducing GHG

Realizing the circular economy

CIRCULAR ECONOMY

APPROACH

The circular economy model aims to use waste streams as a source of secondary resources and to recover waste for reuse

and recycling. This approach is expected to achieve efficient economic growth while minimizing environmental impact

(Halkos and Petrou, 2016)

In a circular economy, products are designed and optimized for a cycle of disassembly and reuse. The intention is to extend

the lifespan of consumables and to minimize the environmental impact of final disposal. For challenging products, such as

computers that are subject to rapid technological advancement and other durables containing metals and plastics that do

not easily degrade, better disposal solutions and reuse could be part of the design process from the start.

Source: What a Waste 2.0 – World Bank Group, 2018

CONCLUSION

The definition of solid waste including wastepaper which can be recycled is still

unclear.03

The finalization of Regulation of The Minister of Trade No. 31/2016 on Provisions on

Importation of Non-Hazardous and Toxic Wastes is still in progress which make

wastepaper/RCP prices high domestically and internationally.

The paper industry based on recycling is impacted by the change of wastepaper

import regulation.01

02

CONCLUSION

All pulp and paper association in ASEAN and Asia need to cooperate and explore

what-to-do to solve these problems.06

Policy makers’ perspective and understanding on what materials are recyclable and

what is waste are still a challenge.04

Uncertainties continue from the unclear definition of waste and recyclable materials

of new Government regulation as well as the understanding of inspectors on what is

recyclable materials.05

THANK YOU

14

IPPA SecretariatCimandiri Street No.6 Flat I/2, Cikini, Central Jakarta

: 021-31926084 / 021-3911351: info@apki.net: www.apki.net: @apki_official