The US-ASEAN Business Council (USABC) is intensifying efforts to strengthen collaboration between Southeast Asia’s public and private sectors to accelerate the transition toward a circular economy. Central to this push is the development of practical, investment-friendly Extended Producer Responsibility (EPR) systems tailored to improve packaging lifecycle management across the region.
USABC noted that Southeast Asia faces several structural challenges in implementing effective EPR systems, including the need to integrate the region’s vast informal waste sector, limited institutional support, insufficient funding, and a persistent lack of reliable waste data. The absence of accurate data continues to hinder target setting, performance monitoring and the ability to measure the true impact of waste management initiatives.
“Clear, predictable, government-mandated and industry-run EPR frameworks are essential for scaling circular economy solutions across ASEAN,” said Nugraheni Utami, Chief Country Representative for Indonesia at USABC. She stressed that regional alignment on core principles, underpinned by transparent reporting, is crucial in creating a level playing field and enabling industry investment in the infrastructure required for inclusive and effective EPR systems.
As ASEAN economies gradually move beyond traditional “take-make-dispose” models, USABC emphasised that harmonised standards will be key to building investor confidence. A unified approach, the organisation said, would give companies the clarity needed to invest in recycling infrastructure, backed by consistent rules that also support the cross-border movement of recyclable materials.
“Malaysia’s upcoming EPR framework is an opportunity to build a practical, multi-material system that drives environmental impact and investment certainty,” added Tina Jamaluddin, USABC’s Chief Country Representative for Malaysia. She said that mutually recognised principles across ASEAN—paired with national-level flexibility—would help reduce policy fragmentation and ensure more efficient implementation throughout the region.
Industry players are already stepping up their commitments. Coca-Cola, through its regional operations and bottling partners, is working closely with governments, recyclers and NGOs to strengthen local collection and recycling ecosystems. “Addressing waste management collection and infrastructure challenges is often complex, however Coca-Cola is committed to collective action to accelerate progress,” said Umesh Madhavan, Director of Packaging Sustainability at Coca-Cola. He added that the company has been advocating for well-structured EPR systems in Malaysia and Indonesia, and supporting the development of Singapore’s Deposit Return System (DRS), in line with its broader mission to reduce plastic packaging waste.
Key partners such as the Mahija Foundation (Mahija Parahita Nusantara), along with advanced recycling facilities including Malaysia’s Hiroyuki Industries and Indonesia’s Amandina Bumi Nusantara, are playing pivotal roles in building the infrastructure needed for successful EPR systems. These organisations provide essential technical expertise and ensure that materials entering the recycling loop meet rigorous environmental and operational standards.
“A circular economy must be inclusive and ethical,” said Ardhina Zaiza, Chairwoman of the Mahija Foundation. She highlighted the organisation’s Responsible Sourcing Initiative, which places waste picker welfare at the centre of the transition from informal to formal waste systems. “By embedding human rights and fair labour standards directly into the supply chain, we provide the transparency that partners like Coca-Cola Europacific Partners (CCEP) and Amandina need. This ensures that the high-quality material entering the recycling loop is not only environmentally sustainable but socially responsible.”
Despite the significant hurdles, momentum for circular economy development in Southeast Asia continues to grow. Through strengthened collaboration between industry leaders, policymakers and local recycling innovators, the region is laying the groundwork for a practical, investment-focused roadmap. This collective approach signals a decisive step toward more sustainable packaging management—driving industry-led transformation in material collection, recycling and reuse, and paving the way for a more inclusive circular future across ASEAN.