The challenge of waste management in Bali has been escalating.
The accelerated business activity and spiking household consumption lead to increasing food waste, plastics and harmful byproducts from different industries. The damage to the environment in Bali, or Indonesia as a whole is obvious.
Indonesia and Its Contribution to Global Pollution
In Indonesia, many people use disposable plastics such as plastic bags, straws, cups, bottles and others in their daily life for convenience as well as their inexpensiveness.
According to Nature Communications, approximately 1.15 million to 2.41 million tonnes of plastic gets into the oceans from worldwide rivers annually. Of all the plastic waste from rivers to the oceans, Indonesia contributes about 200,000 tonnes of them, primarily from Sumatra and Java.
In terms of plastic waste measured in metric tons, four of Indonesia’s rivers have topped the world’s 20 most polluted rivers due to poor management.
As a result, Indonesia has become the second-largest contributor to marine plastic pollution following China.
Bali, which became one of the world’s visited places, has been struggling with the sustainability of its waste management for more than a decade. To address this increasingly severe waste problem, the Indonesian government along with many other public and private sectors, have sought to impose stricter waste management regulations in Bali which has created more business opportunities.
Policies and Regulations Regarding Waste Management in Bali
In addition to the Indonesian government implementing more legislation to deal with Bali’s flaws in waste management facilities, many Bali-based businesses and NGOs are making their stand to fight plastic waste.
With a vision is to achieve “Zero Waste”, Indonesia pledged to reduce plastic debris by 70% by 2025 at the UN’s Ocean Conference.
Besides, in the next four years, the government in Indonesia is pushing a national program to solve land-based waste management issues. The content of this program is still not confirmed however the intention is clear – dedicating US$1 billion to cut down plastic pollution in Bali and entire Indonesia.
“Plastic Tax” is not new anymore in Bali. In 2016, the government imposed an IDR 200 (approximately 2 US cents) on single-use plastic in Indonesia, in an effort to reduce the plastic waste.
However, this tax implementation was then halted due to the criticism that the rate was not high enough to cause a significant effect, as well as the lack of transparency. Therefore, it is still in the mid of revision, and perhaps the revised tax would be effective in the near future.
Opportunities for Foreign Investors
Across Indonesia, Bali seems to be a strong base for all the waste management policies and campaigns. This is primarily due to the fact that it is a well-known international tourist destination and paradise which became a home to many expats who are now contributing to its restoration.
The waste management business opportunities are substantial in Bali, and they operate within several niches in its space, particularly in the accessible and cost-effective infrastructure in waste management and recycling sector.
Waste Management Sectors and Related Fields
The following list covers some of the most lucrative fields serving a huge number of clients looking for different waste management solutions:
- Provide recycling services or start a recycling plant
- Start a waste collection centre
- Start a waste-to-energy power plant or a biofuel production business
- Provide composting services or start a composting plant
- Trade or sale of waste management equipment
- Provide cleaning services to tanks, ships and large containers in an oil and gas industry
- Start a scrap metal and resell business
Establish a Company in Bali
In order to start a company in Bali in regards to waste management and recycling, first of all, you need to choose the most compatible legal activity.
Types of Legal Entities in Indonesia
Each type of business entity has its pros and cons, as well as its classification and requirements. Currently, there are three legal entities foreign investors to choose from in Bali:
- A foreign-owned company (also known as PT PMA)
- A representative office
- A local nominee company
Start a Company in Bali – PT PMA
A PT PMA stands for a Limited Liability Company or Foreign-Owned Company. This is the only form of Indonesian legal entity which can be, under some conditions, entirely owned by foreign entrepreneurs and make a profit.
However, you as a foreigner should take note that some business activities in Bali require Indonesian citizens as shareholders along with the foreigners. There are percentage requirements for some market sectors according to the Negative Investment List (NIL), depending on the nature of the business.
Educational Organisations and NGOs
In Bali, many NGOs and educational organisations have already been working on waste management, particularly on plastic reduction. The initiatives include programs that educate the public and schoolchildren, volunteer to clean beaches and advocate for more effective waste management.
Some of the most successful and well-known projects are Green-Books.org, Refill My Bottle and Bye Bye Plastic Bags.
For foreign entrepreneurs who wish to be part of the educational organisations and NGOs to tackle the waste, pollution and other environmental issues in Bali, check our article How to Set Up a Non-Profit Organisation in Bali.
Penetrate the Market Now
There is still a lot more of waste management opportunities to be explored in Bali. By getting yourself prepared before venturing into one can determine the success of your business.
Cekindo is here to help you out with both company and NGO registration in a field of waste management in Bali. Fill in the form below, and we will get back to you with a free quotation on your business.
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