Kolekt offers Indonesian FMCG companies new solution to packaging waste
KOLEKT and WaHu Waste Hubs Indonesia have launched a Certificates marketplace for verified waste recovery certificates to fund sustainable plastics collection.
KOLEKT has joined forces with Waste Hubs Indonesia (WaHu) to launch the Kolekt Exchange Certificate (KXC) platform, a new verifiable system for plastic waste management. Kolekt Exchange offers Fast-Moving Consumer Goods (FMCG) producers a traceable and financially efficient solution to meet the Indonesian government’s impending Extended Producer Responsibility (EPR) regulation targets. The marketplace will soon also offer certificates for Brazil, Canada, Colombia, Kenya, Mozambique and Vietnam.
WaHu, which already operates on the ground in Indonesia, focuses on buying up all sorts of plastic household waste through its network op collection Hubs in partnership with Ahold Delhaize’s ‘SuperIndo’ supermarket chain. WaHu sorts, bales, and sends this recyclable material to recyclers in Indonesia. WaHu's certificates are offered to cover the cost of expanding their waste collection infrastructure and helping informal waste collectors earn more.
The collaboration addresses this financial challenge by allowing WaHu to monetize the proof of its responsible collection. Kolekt's platform, the Kolekt Exchange issues verified waste recovery certificates for every tonne of collected and recycled plastic. These certificates can be purchased by product producers, brands and retailers.
For companies that put plastic packaging on the Indonesian market, such as, Wings, Danone, Unilever, IndoFoods, Mayora, FrieslandCampina, and Heineken, the purchase of these Certificates (KXCs) provides immediate and verifiable proof of their contribution to plastic waste collection and recycling efforts - the platform charges a small 5% fee, assuring that 95% of their financial contribution will be used for further waste recovery.
The system is strategically timed to help producers prepare for the Indonesian government's planned targets for collection and recycling. By purchasing the KXC's proof, companies gain a cost-effective alternative to potential government fines or fees for failing to meet their statutory obligations, ensuring that funding flows directly to the waste management infrastructure.
Euro 1 billion per year is the estimated full cost of plastic waste recovery for Indonesia, calculated with Kolekt's EPR-Simulator. Where brands produce around 7 million tonnes of plastic per year, according to Indonesia’s National Plastic Action Partnership. The planned EPR regulation (via certificates, fees or taxes) would be a mechanism to pay for the collection of the plastic waste. This is a welcome policy in a country where municipal waste activities are normally underfunded.
"The Kolekt Exchange provides the transparency and verification needed for a credible Extended Producer Responsibility (EPR) system. By issuing verified Waste Recovery Certificates, we are not just providing proof of collection, but creating a vital, traceable revenue stream for local waste operators like WaHu, ensuring that brands' investments lead to real environmental and social impact on the ground." Thierry Sanders, Founder of Kolekt.
"Collecting plastic waste responsibly in Indonesia faces immense challenges due to high logistics and infrastructure costs. Our collaboration with Kolekt is crucial. The revenue from the Kolekt Certificates directly helps us pay higher fees to our waste pickers, stabilize our operation, and prove to the world that we are collecting and selling responsibly, making true sustainability viable." Michiel Reinoud, CEO of WaHu Waste Hubs Indonesia.