Circular Economy Opens Business Opportunities

Indonesia faces a dual challenge of managing its significant waste output and addressing income limitations for coastal communities and farmers. A circular economy approach is emerging as a solution, transforming waste into economic opportunities.

Data indicates that over 21 percent of Indonesia's annual waste remains unmanaged, while millions of smallholder farmers and small-scale fishermen struggle with limited income sources. Social enterprises, supported by the DBS Foundation, are stepping in to bridge this gap. Parongpong RAW Lab, for instance, is tackling the issue of discarded fishing nets, known as 'ghost nets,' in coastal areas like Jakarta and Banyuwangi.

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Our impact doesn't stop at waste reduction, but also how coastal communities can take an active role in the circular economy and gain better economic benefits.

Parongpong RAW Lab aims to collect 20 tons of ghost nets, engaging over 600 fishermen and 1,000 coastal community members. They are establishing microfactories to process the nets into marketable products, such as table lamps. "Our impact doesn't stop at waste reduction, but also how coastal communities can take an active role in the circular economy and gain better economic benefits," said Rendy Aditya Wachid, CEO & Founder of Parongpong RAW Lab. The initiative has already collected over 4,500 kilograms of nets.

Meanwhile, Mycotech Lab (MYCL) focuses on agricultural waste, converting it into mycelium-based biomaterials like mycelium composite and leather. MYCL has served nearly 1,000 customers across 56 countries and involved over 200 farmers in its supply chain. In 2025, the company utilized 61.72 tons of biomass waste, preventing approximately 148.75 tons of CO2 equivalent emissions. "By processing agricultural waste into biomaterials, we want to create lower-impact alternative materials while building a value chain that benefits farmers and workers," stated Co-founder Ronaldiaz Hartantyo.

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By processing agricultural waste into biomaterials, we want to create lower-impact alternative materials while building a value chain that benefits farmers and workers.