KADIN INDONESIA
Indonesian Chamber of Commerce and Industry
As Indonesia transitions to a new era of governance under the leadership of President-Elect Prabowo, food security is set to become a national priority.[1] One of the most pressing challenges as regards the achieving of this goal is the worrying amount of food loss and waste (collectively referred to as “FLW”) that persists across the country. Despite Indonesia’s abundant food production, a significant percentage of the population faces hunger each day. At the same time, billions of tons of food are discarded, ultimately exacerbating this crisis.
At the national level, generated food waste has resulted in substantial economic losses that amount to Rp. 213 - 551 trillion or approximately 4% - 5% of Indonesia’s gross domestic product (GDP). The nutritional value of this wasted food could feed an estimated 61 - 125 million people, representing nearly half of the country's population.[2] Moreover, according to the United Nations Environment Programme (UNEP), Indonesia ranked the top producer of food waste in Southeast Asia and the fourth-largest globally as of 2021.[3]
At the international level, Indonesia, as a United Nations member state, is expected to work to achieve its various obligations under the Sustainable Development Goals (“SDG”). In this regard, FLW reduction has been designated as a key target, particularly SDG 12: Responsible Consumption and Production, which seeks to halve food waste at the retail and consumer levels by 2030 and reduce food losses along the supply chain.[4] Beyond SDG 12, addressing FLW will ultimately have an impact on SDG 2: Zero Hunger and SDG 13: Climate Action, as reducing food waste has both significant social and environmental benefits.
In light of these issues, government-led efforts to reduce FLW in Indonesia have only recently begun to take shape. In this context, the latest iterations of several national development plans that include the National Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah – “RPJMN”) and the National Long-Term Development Plan (Rencana Pembangunan Jangka Panjang – “RPJPN”) briefly touch on the issue of FLW. The inclusion of FLW in these strategic plans is undoubtedly an important first step, however, without the implementation of comprehensive, binding legislation and the infrastructure necessary to ensure accountability for businesses, consumers and other stakeholders, progress will remain slow. In this regard, the prioritization of food security by the incoming government signals renewed political will, offering a potential avenue for more decisive action to tackle FLW in a structured and enforceable way.
This edition of Indonesian Law Digest (“ILD”) seeks to raise awareness of the prevailing regulatory gaps while analyzing current initiatives and proposing solutions inspired by global best practices. In addition to exploring the business sector’s role in FLW, our discussion features specific insights from a stakeholder currently working directly within the field and addressing these pressing issues. To ensure a comprehensive discussion, our analysis has been divided up as follows:
I. FLW 101: General Terms and Statistics
II. Navigating Regulatory Gaps: Frameworks Relevant to Food Waste
A. General Waste Management
B. National Development Plans
C. Expiration Dates
III. Best Practices: Insights from Other Countries and International Frameworks
A. State Practices
B. International Code of Conduct
III. Solutions and Opportunities for Stakeholders
A. Available Initiatives
B. Corporate Engagement: Encouraging Mutually Beneficial Practices
FLW represents economic losses for all actors along food supply chains, including consumers. However, FLW is differentiated based on where in the supply chain the reduction in food quality and/or quantity occurs. The table below sets out various definitions that are used by the National Development Planning Agency (Badan Perencanaan Pembangunan Nasional - “Bappenas”) and the Food and Agriculture Organization of the United Nations (“FAO”) – with FAO’s issue paper also identifying which types of legal frameworks are most likely to affect each term:
| Term | Food Loss Resulting from Decisions or Actions of … [5] | Remarks | Affecting Legislations[6] |
| Food loss (susut pangan) | Food supply chain actors from production up to, but excluding, retailers, food service providers and consumers (“Food Loss”) | May result from non-human actions such as pest attacks or adverse weather conditions[7] | Legislation that covers agriculture and food supply chains |
| Food waste (sisa pangan) | Retailers, food service providers and consumers (“Food Waste”) | Generally refers to food that is still considered safe and fit for human consumption but that has been discarded[8] | Legislation that covers waste management, food donations, and food and feed safety and quality |
Within the context of the food supply chain, the distinction between both of these terms can be broadly visualized based on the stages of the food cycle. Food Loss primarily occurs during the production, post-harvest and processing stages, while Food Waste typically arises during the retail and consumption stages. In Indonesia, these critical loss points, particularly the consumption stage, generate an estimated 5 - 19 million tons of Food Waste annually.[9]
As the above illustration implies, surplus food (kelebihan pangan) may derive from various sources that range from farms, warehouses and supermarkets to ports and airports. However, the current system lacks organization and improvements will be necessary in order to optimize the redistribution of food through organizations such as food banks.[10]
Moreover, by analyzing the composition of waste in Indonesia, it is evident that a significant portion of total waste is made up of FLW. This is supported by data from the Waste Management Information System of the Ministry of Environment and Forestry in 2023. The breakdown of FLW compared to other waste types is as follows:[11]
Indonesia’s regulatory frameworks primarily address the management of waste after its generation, with very little focus being placed on the prevention of Food Waste. This absence of enforceable regulations has led to an inconsistent approach by businesses, many of which do not prioritize the management of Food Waste. In order to bridge this gap, the following laws and policies could be expanded and lay the foundation for more targeted regulations.
As mandated under Regulation of the Government No. 81 of 2012 on Household Waste Management and Similar Household Waste (“Regulation 81/2012”), producers are obligated to implement measures to reduce waste generation in general.[12] The relevant mandatory actions are further clarified under Regulation of the Minister of Environment and Forestry No. 75 of 2019 on the Roadmap for Waste Reduction by Producers (“Regulation 75/2019”), which defines producers as businesses and/or entities that engage in manufacturing, food and beverage services, and retail (collectively referred to as “Producers”). These Producer sectors are further categorized as follows:[13]
| Sector | Types of Industries |
| Manufacturing | Food and beverage industries |
| Consumer goods industries | |
| Cosmetics and personal care industries | |
| Food and Beverage Services | Restaurants |
| Cafes | |
| Catering services | |
| Hotels | |
| Retail | Shopping malls |
| Modern stores | |
| Public markets |
While Food Waste is not explicitly addressed under any of the above-mentioned Regulations, Regulation 75/2019 mandates that the following general waste reduction activities must be implemented by Producers:[14]
| Waste Reduction Activities | Description |
| Reducing waste generation | Utilizing products, packaging, and containers that are biodegradable and that minimize waste generation |
| Avoiding the use of products, packaging and containers that are difficult to decompose naturally | |
| Recycling waste | Utilizing recyclable raw materials for production purposes |
| Utilizing recycled materials as raw materials for production purposes | |
| Reusing waste | Utilizing reusable raw production materials |
Under this framework, the government introduced various relevant incentives and disincentives for Producers. Incentives may be provided in the form of awards and public recognition for good performance, while disincentives may involve the publishing of reports on poor waste management performance by Producers.[15] The aforementioned awards may be bestowed based on several criteria, as outlined in the following table:[16]
| Subjects | Considerations |
Encompass:
|
Incentives, in the form of awards, are bestowed based on:
|
As the foundation of national development, the government periodically formulates a series of plans, including the RPJMN, which outlines the vision, mission and programs of the elected president. The national development agendas, which are derived from President Joko Widodo’s vision and mission, are further elaborated upon under Regulation of the President No. 18 of 2020 on RPJMN 2020 - 2024 (“Regulation 18/2020”), which has been translated into several policy directions and strategies.
Among the provisions that feature under the RPJMN 2020 - 2024 are several key points that encourage Food Waste management efforts, as summarized in the table below:
| Development Agenda | Policy Direction and Strategy | Remarks |
| Strengthening of economic resilience for the purpose of equitable and quality growth[17] | Management of economic resources through the improvement of access to and availability and quality of food consumption | This strategy, which includes the enhancement of national food system governance, covers:
|
| Creating a sustainable environment, enhancing disaster resilience and tackling climate change[18] | Low-carbon development through the optimization of waste management and the development of green industries | Strategies include:
|
The waste reduction targets that were previously set under the RPJMN 2015 - 2019 were not fully achieved,[19] prompting the government to aim for more ambitious goals through RPJMN 2020 - 2024. The current targets aim to reduce household waste by 30% and manage 70% of waste from commercial, industrial and public areas by 2025, which is to be accomplished through the National Policy and Strategy on the Management of Household and Similar Waste (Kebijakan Dan Strategi Nasional Pengelolaan Sampah Rumah Tangga Dan Sampah Sejenis Sampah Rumah Tangga – “Jakstranas”). These targets and strategies are further outlined under Regulation of the President No. 97 of 2017 (“Regulation 97/2017”).[20]
However, despite Food Waste constituting a substantial portion of total waste, provisions that specifically address Food Waste have still not been included in the Jakstranas. In line with the statistics set out in the previous section, reports from the 2019 - 2023 period reveal that 44% - 46% of generated waste, which amounts to an average of approximately 116,000 - 123,000 tons per district/city annually, comprised Food Waste.[21] As a result, without the introduction of significant measures capable of tackling Food Waste, achieving the waste reduction targets set out under both Jakstranas and the RPJMN 2020 - 2024 will prove to be a serious challenge.
On a more positive note, the Draft Bill on the National Long-Term Development Plan (Rencana Pembangunan Jangka Panjang/RPJPN) 2025 - 2045 includes a more specific agenda aimed at reducing overall FLW and is targeting a 75% reduction by 2045.[22] This agenda will be supported by policies on infrastructure development that aim to facilitate an economic transformation, including optimizing the reuse of organic waste and FLW through partnerships with offtakers.[23]
Under Law No. 18 of 2012 on Food, as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (“Law 18/2012”), all persons producing or importing food within Indonesia are required to include labeling on or within the relevant packaging that sets out certain types of mandatory information, including the relevant expiration dates (“Expiration Dates”).[24] Furthermore, Regulation of the Government No. 69 of 1999 on Food Labeling and Advertisements (“Regulation 69/1999”), mandates that all Expiration Dates must be clearly stated on the relevant labels, specifically after the phrase “Best Before”.[25]
In addition to the above-mentioned regulatory frameworks, this requirement was further reinforced under Law No. 8 of 1999 on Consumer Protection (“Law 8/1999”)[26], as well as Regulation of the Minister of Health No. 180 of 1985 on Expired Foods (“Regulation 180/1985”),[27] which impose sanctions for non-compliance. These comprehensive Regulations help to ensure that producers and importers are held accountable for the provision of clear expiration information, as well as the promotion of both food safety and consumer protection.
While these Regulations play a crucial role in safeguarding public health, they also serve as an important tool in terms of efforts to reduce Food Waste. One key improvement in this area would be to promote a clear distinction between “Best before” and “Use by” dates – a practice that has already been adopted by the European Union and the United Kingdom. The table below breaks down the differences between these two types of labels:[28]
| Label Type | Remarks |
| Best before | Indicates food quality and does not necessarily mean that food is unsafe to eat after a certain date. Consumers are encouraged to use their senses (e.g. smell or taste) to determine whether these foods are still good after the relevant “best before” dates. This practice helps to reduce unnecessary food waste, as many products are still perfectly edible after their “best before” dates have passed. |
| Use by | Indicates food safety and must be strictly followed. Foods should not be consumed after this date, even if they appear fine. |
As of now, national Laws and Regulations do not recognize this distinction, and many consumers remain unaware that the phrase “Best before” refers to food quality and not safety, meaning that food may still be consumable after the relevant date has passed. If this distinction were properly introduced and disseminated, then it would undoubtedly enhance consumer understanding of food labeling, helping to prevent the unnecessary disposal of food products that remain safe to eat beyond their “best before” dates.[29]
As mentioned in the previous sections, Indonesia currently has a limited number of regulatory frameworks that specifically address the management of food waste and expiration dates. This can be further emphasized through a comparison between the FLW management policies of various states, as reported by Bappenas in reference to the FAO.[30] Many other countries have implemented various types of regulatory frameworks, several of which are broadly summarized in the following table:
| Type of Legislations | Countries | Name of Legislations | Key Provisions |
| Food safety regulations on donations | India[31] | The Food Safety and Standards (Recovery and Distribution of Surplus Food) Regulation |
|
| Liability protection for donors* | United States[32] | The Bill Emerson Good Samaritan Food Donation Act, 1996 | Protects food donors and distributing organizations from legal claims, as long as the donation process is conducted in good faith and without any acts of gross negligence. |
| Tax incentives for donors* | Philippines[33] | The Food Donation Act and Food Waste Reduction Act | Restaurants are exempted from donor taxes and are not liable for donated food. |
| Australia[34] | The National Food Donation Tax | Offers tax deductions for businesses that donate food and essential services, such as refrigeration and transportation, to food rescue organizations. | |
| Mandatory food donations* | Pakistan[35] | The Disposal of Excess Food Act, 2019 | Requires food operators and all parties involved in the production, storage and/or distribution of food to donate surplus food to designated recipients. |
| Poland[36] | Act 2019/1680 on counteracting food waste | Food sellers are obliged to draw up contracts with non-governmental organizations on free transfers of foods that meet food law requirements and that are not intended for sale, in particular, due to food or packaging defects. | |
| Specific bans on or fines for the disposal of Food Waste as landfill | South Korea | The Waste Control Act |
|
| China[39] | The Anti-Food Waste Law of the People’s Republic of China | Promotes the so-called “Clean Plate” campaign, which aims to reduce excessive leftovers, allowing restaurants to charge extra for excessive Food Waste. Restaurants that produce large-scale Food Waste may also face fines. | |
| National strategies for food loss reduction | Thailand[40] | The Food Waste Management Plan | Aims to prevent the generation of Food Waste through better demand planning and encourages donations to food banks and shelters for those in need. |
| Mandatory reporting requirements for food supply chain actors | Uzbekistan[41] | Decree No. 574/2021 of the Cabinet of Ministers
|
Requires agro-industrial entities to implement measures aimed at reducing agricultural and food losses, including mandatory reporting on food stock levels. |
| Food bank registration and certification* | United States | Feeding America[42] | Establish national networks of certified food banks that adhere to standardized food safety and distribution protocols, ensuring credible partnerships with donors. |
| European Union | European Food Banks Federation (FEBA)[43] | ||
| Others | Singapore[44] | The Resource Sustainability Act, 2019 | Requires commercial and industrial buildings (e.g. malls, hotels and factories) to segregate Food Waste for on-site or off-site waste treatment purposes and also sets out various mandatory reporting requirements. |
As the above table demonstrates, legislative efforts aimed at mitigating the negative impacts of Food Waste are not only trending in developed nations but are also currently being pursued by developing countries and Indonesia’s neighboring nations. However, in comparison, Indonesia’s lack of relevant Regulations means that it lags significantly behind these efforts.
Given that Indonesia is still a long way from enforcing adequate legislation capable of supporting FLW reduction, non-profit organizations are currently urging the government through public hearings and discussions to draft and pass relevant Regulations. Among the various types of Regulations that are required and that other countries are currently pursuing, the ones marked with asterisks (*) in the table above were highlighted as key areas during an interview that we undertook with a local Indonesian food bank.
The FAO has developed a global, non-legally binding instrument: the Voluntary Code of Conduct for FLW Reduction (“CoC FLW”), which was endorsed by the FAO Conference in June of 2021. The CoC FLW provides guidance for governments on the structuring of national policies aimed at reducing FLW. The table below summarizes two key provisions of the code:[45]
| Provision | Content |
| Paragraph 4.8.1 | Governments should establish adequate legislative frameworks that require or encourage food supply chain actors to adopt science-based practices and undertake investments aimed at reducing FLW. |
| Paragraph 4.8.2 | Governments should promote an enabling policy, as well as legal and institutional environments, including necessary safeguards, to encourage responsible investments by food supply chain actors. |
The provisions that are summarized above highlight the need for Indonesia to create a conducive regulatory and institutional environment that is capable of tackling FLW. Within this context, the CoC FLW may also serve as a foundational guide for the development of future national frameworks, in particular by encouraging responsible investments and science-based practices that are aimed at reducing food waste across the supply chain.
Despite the current absence of any mandatory Regulations, several initiatives are making progress towards better surplus food management. One of the core government-led efforts in this regard is the Save Food Movement (Gerakan Selamatkan Pangan – “GSP”), which was launched by the National Food Agency (Badan Pangan Nasional) in 2022. This initiative is now being implemented at the local government level and aims to reduce Food Waste through collaborations between businesses, food banks and communities. GSP has already expanded across 38 provinces, saving over 52 tons of surplus food in the process and utilizing logistical supports such as food trucks for redistribution purposes.[46]
In addition to governmental efforts, various non-profit organizations and private entities have introduced a number of impactful programs that aim to facilitate surplus food management. Summarized in the table below are several of these ongoing initiatives and their various stakeholders:
| Organizer | Location | Main Programs |
| Aksata Pangan | Medan | Aksata Pangan is a member of the Global Food Banking Network. Its main programs encompass Food Stamps, Food Heroes, Food Pantry and Food Drive. Aksata Pangan collaborates with hotels, retailers and farmers in order to donate surplus food. |
| Surplus | Jabodetabek, Bandung, Yogyakarta, Bali, Surabaya | Surplus operates through an app that allows businesses to sell surplus food at 50% of its original price. Additional programs include food awareness education, community empowerment and surplus food donations. |
| FoodCycle Indonesia | Jakarta | FoodCycle rescues food from events, bakeries, corporate lunches, supermarkets and FMCGs before distributing it to underserved communities. It also runs community empowerment programs such as FoodCycle Farm. |
| Food Bank Bandung | Bandung | Food Bank Bandung’s mission is to increase food security for underprivileged communities and reduce food waste. It also provides education on the prevention and saving of surplus food. |
| Scholars of Sustenance (“SOS”) | Bali, Jakarta | SOS focuses on rescuing surplus food and distributing it to those in need. Their main programs include Food Rescue, Rescue Kitchen and Healthy School, which involve collaborations with hotels, supermarkets, bakeries, manufacturers and farmers. |
Siti Suci Larasati, Founder and Chief Executive Officer of Aksata Pangan, explained during our interview with her that many companies, particularly larger corporations, have made surplus food donations an integral part of their operations. In this regard, it should be noted that these efforts are primarily being driven by sustainability audits and Environmental, Social and Governance (“ESG”) reports, which may include assessments of surplus food management. Global companies such as Nestle, for example, are bound by corporate sustainability policies that specifically address FLW reduction.
However, various challenges persist for smaller businesses, as well as micro-, small- and medium-scale enterprises (“MSMEs”), which often lack the awareness and resources required to prioritize FLW reduction. While larger corporations are driven by global ESG standards, MSMEs tend to focus more on day-to-day survival and may not recognize the long-term benefits of minimizing FLW. In this context, aligning food surplus management with national-level Regulations could encourage better practices. One of the primary steps here would be ensuring that any food that is still fit for consumption is not discarded unnecessarily, which could be achieved through the introduction of policies that offer both incentives for reducing food waste and penalties for excessive waste.
While also hoping for clearer Regulations and policies, food banks, which act as intermediaries, generally provide benefits such as public acknowledgment, shared values and certificates that can enhance the reputation of participating businesses. For MSMEs, it is important to emphasize that the active integration of FLW reduction initiatives into their management practices may lead to mutual benefits for both businesses and the environment.[47]
As Indonesia strives to enhance food security under its new leadership, tackling the issue of FLW must become a priority. With millions of tons of food being wasted each and every year and economic losses continuing to mount, the country can no longer afford to delay action. While the inclusion of FLW in Indonesia’s national development plans is seen as an encouraging step, the legal teeth required to enforce change across all relevant sectors are still lacking.
By adopting global best practices and learning from successful international models, Indonesia has a significant opportunity to reduce FLW and contribute to its SDG. In this regard, success will depend on the collective awareness and engagement of all stakeholders, which include businesses, policymakers and consumers alike. Whether through improved food management by industries or more mindful consumption at the individual level, everyone has a role to play in addressing the ongoing crisis of Food Waste.
Source: hukumonline.com
National Economy
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