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Closing The Waste Gap In Indonesia: Harnessing Industrial Waste To Prevent Pollution And Conserve Non-Renewable Resources

Author

Listed:
  • Vincent Aloysius

    (DBA Candidate at Trisakti–Maastricht School of Management, E-mail: vincentaloysius@yahoo.com)

  • Dadan Umar Daihani

    (Trisakti University)

Abstract

According to the World Waste Survey 2009 by Chalmin and Gaillochet, an estimated twelve million tonnes of hazardous waste was generated in Indonesia in that year. Only a small fraction of this waste, an estimated one million tonnes was reported to be managed properly. These figures are alarming in two ways. Firstly, the fact that such a large amount of waste is being unmanaged indicates a high pollution risk. Secondly, it highlights a significant opportunity lost from not practicing resource recovery from waste. Many other developing countries could be in a similar situation as Indonesia with a lack of waste management capacity and pollution problems from unmanaged waste. How can we encourage the growth of industrial waste management to close the gap between waste generated and waste managed? What instruments can policy makers use to encourage industries to demand, and entrepreneurs to build capacity for waste management through resource recovery solutions? This paper is based on an on-going research focused on the internal and external drivers that can influence firms to adopt 3R (Reuse, Recycle and Recovery) solutions for the waste their operations generate. It is expected that this research delivers some in-sights into the effectiveness of the current policies and the environmental disclosure program vis-à-vis the awareness, commitment and compliance to the firm’s internal policies on waste management. A conceptual model representing the above variables was developed and revised following an initial study. It is hoped that the findings of this research would provide better understanding into what are the drivers and how they interact and work through the aid of this model. The research will take the perspective of environmental practitioners from various industries and to what extend the shift to 3R solutions has been achieved. It is hoped that some recommendations to policy makers could evolve from this study to encourage more 3R solutions by industries and thereby closing the waste gap in Indonesia. This paper does not explore the outcomes of the study but rather describes the approach and methodology outlined to effectively execute the research. The findings of the research will be the subject of future papers.

Suggested Citation

  • Vincent Aloysius & Dadan Umar Daihani, 2011. "Closing The Waste Gap In Indonesia: Harnessing Industrial Waste To Prevent Pollution And Conserve Non-Renewable Resources," Working Papers 2011/29, Maastricht School of Management.
    • Handle: RePEc:msm:wpaper:2011/29
    as

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    File URL: http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2011-29.pdf
    File Function: First version, 2011
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    References listed on IDEAS

    as
    1. Dasgupta, Susmita & Hong, Jong Ho & Laplante, Benoit & Mamingi, Nlandu, 2006. "Disclosure of environmental violations and stock market in the Republic of Korea," Ecological Economics, Elsevier, vol. 58(4), pages 759-777, July.
    2. Jorge García & Shakeb Afsah & Thomas Sterner, 2009. "Which Firms are More Sensitive to Public Disclosure Schemes for Pollution Control? Evidence from Indonesia’s PROPER Program," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 151-168, February.
    3. David Gadenne & Jessica Kennedy & Catherine McKeiver, 2009. "An Empirical Study of Environmental Awareness and Practices in SMEs," Journal of Business Ethics, Springer, vol. 84(1), pages 45-63, January.
    4. Sarah Stafford, 2007. "Can consumers enforce environmental regulations? The role of the market in hazardous waste compliance," Journal of Regulatory Economics, Springer, vol. 31(1), pages 83-107, February.
    5. repec:dau:papers:123456789/2907 is not listed on IDEAS
    6. Macauley, Molly K., 2009. "Waste Not, Want Not: Economic and Legal Challenges of Regulation-Induced Changes in Waste Technology and Management," RFF Working Paper Series dp-09-11, Resources for the Future.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Industrial Waste Management; Waste Management Policy; 3R Waste Solutions; Resource Recovery; Environmental Rating and Disclosure Program;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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