Paper and paperboard waste market in Indonesia

Earlier Report Observations

The market volume for paper and paperboard waste in Indonesia fluctuated between 6.2 million tons and 6.7 million tons from 2018 to 2023. This period was marked by the industry's increasing reliance on recycled paper as a raw material, supported by government promotion of circular economy principles to reduce import dependence and manage packaging waste. Investments in pulp and paper productivity and growing domestic recycling capacity helped maintain overall market stability.

A notable surge in market volume occurred in 2021, driven by the optimization of waste paper usage within the national pulp and paper industry and a concerted push for circular economy practices. The subsequent decline in 2022 aligned with the preparation of stricter import regulations for non-hazardous waste, which tempered import flows. The market saw renewed growth in 2023 following the implementation of Minister of Industry Regulation No. 39 of 2024, which formalized import controls. Throughout this period, the entry of companies like PT Alkindo Naratama, which expanded production of paper bags and boxes from waste, added dynamism to the market.

Production paper and paperboard waste in Indonesia

In kind, 2018-2021, K t

Indonesia was one of the world's leading producers of paper and paperboard waste from 2018 to 2021, ranking 14th globally by production volume.

Top producers of paper and paperboard waste, 2018-2021

World map of production of paper and paperboard waste, 2018-2021

In 2021, Indonesia produced 3 233 K t of paper and paperboard waste, showing virtually no change compared to the previous year. The largest decline occurred in 2019, at 0.0%, while the largest increase was also recorded in 2019, at 0.0%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

Exports paper and paperboard waste from Indonesia

Exports in kind, K t

Indonesia's paper and paperboard waste exports declined for the third consecutive year. In 2021, exports totaled 16 K t, representing a modest decline of 4.6% compared to the previous year. Over the period from 2018 to 2021, exports decreased by 69.5%, with a compound annual growth rate (CAGR) of -32.7%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K t

From 2018 to 2021, Singapore accounted for 60.2% of Indonesia's paper and paperboard waste exports in kind, followed by Japan at 11.5% and Hong Kong at 9.9%. Together, these three markets comprised 81.6% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, M $ US

The value of paper and paperboard waste exports from Indonesia declined for the third consecutive year. In 2021, export value amounted to 2.5 M $ US, a decrease of 7.1% compared to 2020. Over the period from 2018 to 2021, exports decreased by 80.2%, with a compound annual growth rate (CAGR) of -41.7%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, M $ US

Between 2018 and 2021, three main markets—Singapore, Hong Kong, and Vietnam—together absorbed 74.4% of the total value of paper and paperboard waste exports from Indonesia.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports paper and paperboard waste to Indonesia

Imports in kind, K t

After a two-year decrease, Indonesia's imports of paper and paperboard waste increased in 2021. Imports reached 3 443 K t, a 14.8% rise compared to the previous year. From 2018 to 2021, imports grew by 7.8%, equating to an annualized rate of 2.5%. The lowest import volume was recorded in 2020 at 3 000 K t, with the largest decline of 5.7% also occurring in that year.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K t

From 2018 to 2021, Indonesia's imports of paper and paperboard waste in kind came from a diverse range of partner countries. The United States contributed 23.1% of imports, Italy 13.6%, and the United Kingdom 10.5%, with these three countries together accounting for 47.3% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, M $ US

The data shows irregular changes, indicating a volatile market environment. Import values reached their lowest point in 2020 and peaked in 2021, with a 2.1-fold increase between these years. In 2021, the import value of paper and paperboard waste into Indonesia amounted to 923.2 M $ US, marking a significant rise of 110.8% from 2020. The minimum value was recorded in 2020 at 437.9 M $ US, while the largest decline occurred in 2019 at 11.0%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, M $ US

During 2018–2021, the United States was the largest supplier of paper and paperboard waste to Indonesia in value terms, accounting for 22.0% of imports, followed by Italy at 12.9% and Australia at 11.5%. However, their combined share reached only 46.4% of total imports, with the remaining 53.6% distributed among many other partners.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021