US-ASEAN Council pushes unified circular economy rules

To fast-track Southeast Asia’s shift toward a circular economy, the US-ASEAN Business Council (USABC) is calling for public-private collaboration to develop scalable, investment-friendly Extended Producer Responsibility systems tailored to the region’s packaging lifecycle.

The council emphasized that regional alignment is essential to overcoming shared challenges.

These challenges include integrating large informal waste sectors, navigating limited institutional capacity, addressing funding constraints, and closing data gaps that hinder measurable progress.

“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, USABC.

“Regional alignment on core principles, supported by transparent reporting, creates a level playing field for industry and investment in the infrastructure needed for effective, inclusive EPR systems to drive circular outcomes for packaging.”

With ASEAN states evolving beyond the linear “take-make-dispose” model, USABC advocates for harmonized principles across the bloc.

Shared standards, the council argues, give companies the confidence to invest in local recycling infrastructure and enable efficient movement of materials between countries.

“Malaysia’s upcoming EPR framework is an opportunity to build a practical, multi-material system that drives environmental impact and investment certainty,” said Tina Jamaluddin, chief country representative for Malaysia, USABC.

“Mutually recognized principles across ASEAN, paired with national flexibility, help reduce fragmentation and support efficient implementation across the region.”

Major corporations are responding to the region’s transition.

“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, Coca-Cola.

“Across Southeast Asia, together with our bottling partners, we collaborate with governments, industry, recyclers, and NGOs to strengthen local recycling and collection systems and infrastructure.”

“Our efforts include advocating for well-structured EPR systems in Malaysia and Indonesia, and well-designed deposit return systems in Singapore.”

“Through ongoing investments and partnerships, we are committed to helping reduce plastic packaging waste.”

Critical to the circular transition are grassroots and industry partners that support inclusive infrastructure.

Organizations such as the Mahija Foundation (Mahija Parahita Nusantara), along with recyclers Hiroyuki Industries in Malaysia and Amandina Bumi Nusantara in Indonesia, are helping establish viable national EPR systems.

“A circular economy must be inclusive and ethical. At Mahija Foundation, we are implementing the Responsible Sourcing Initiative to ensure that the transition from informal to formal waste management puts people first,” said Ardhina Zaiza, chairwoman of Mahija Foundation.

“By embedding human rights and fair labor standards directly into the supply chain, we provide the transparency that partners like Coca-Cola Europacific Partners and Amandina need.”

“This ensures that the high-quality material entering the recycling loop is not only environmentally sustainable but socially responsible, uplifting the waste pickers who are the heroes of this ecosystem.”

Despite the complexity of Southeast Asia’s waste systems, USABC believes that collective, regionally coordinated action can yield a transformative shift.

By aligning industry leaders, governments, and local innovators, the region is building a practical roadmap toward a more sustainable and socially responsible packaging economy.