ADB Provides $500 Million Loan To Reduce Sea Plastic Waste In Indonesia

JAKARTA The Asian Development Bank (ADB) has approved a USD 500 million loan to strengthen Indonesia's program in reducing plastic waste at sea.

Although the World Plastic Treaty, international initiatives designed to overcome plastic pollution through legally binding agreements are currently still being negotiated, this program will focus on supporting the Indonesian Sea Waste Management National Action Plan which aims to reduce the flow of plastic waste into the ocean by 70 percent by 2025.

The coastal area of Indonesia, which is inhabited by 70 percent of its population, is a very important area for marine and fisheries tourism, which contributes greatly to the economy.

However, uncontrolled plastic pollution poses a serious threat to the marine ecosystem, which causes $450 million annually in damage and threatens revenue from tourism with a value of $3 billion.

Plastic waste in waterways increases the risk of flooding and damages the fishing industry and people's livelihoods. Plastic pollution threatens human health through food chain contamination, especially for low-income households.

In 2018, the government committed to reducing 70 percent of plastic waste at sea by 2025, through collection, processing, recycling, and reuse of solid waste, which was carried out through the National Action Plan for Marine Waste Management.

As of the end of 2022, there has been a 35 percent decline from the level in 2018, which is showing good progress, but at the same time showing the need to accelerate reform to achieve the 70 percent target.

ADB will support the Action Plan by increasing plastic waste management, reducing the production and consumption of problematic plastics, and strengthening data and monitoring devices for policymaking.

"ADB is pleased to partner with Indonesia to reduce marine debris and at the same time promote the development of the blue economy," said Director of ADB for Indonesia Jiro Tominaga in a written statement, Friday, May 24.

Jiro said the existence of so much plastic waste in the sea not only endangers livelihoods in coastal areas, but also reduces overall climate resilience.

"ADB remains firm in supporting the National Action Plan for Handling Indonesian Sea Waste, by targeting holistic management of various factors that contribute to the disposal of plastic into the sea", he said.

Jiro conveyed that the marine waste reduction program targets three main areas, namely dealing with downstream waste management, implementing upstream interventions to reduce the production of plastic waste, and supporting important elements needed for the success of reform as a whole.

The program was developed under the Southeast Asia Blue Financing Axis (Blue Southeast Asia Finance Hub), the first marine waste program supported by ADB. This program continues the operational work and knowledge of ADB in Indonesia.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, and continues its efforts to eradicate extreme poverty. Founded in 1966, ADB was owned by 68 members and 49 of them were in the Asia and Pacific regions.