The Indonesian government has set an ambitious 2025 target to reduce waste by 30 percent, waste handling by 70 percent and plastic marine debris by 70 percent.

Discussions are also moving from conceptual to actual. The circular economy, for instance, is being implemented through means such as integrating environmental, social and governance (ESG) indicators for businesses, regulating and implementing extended producer responsibility (EPR) and creating online platforms for collecting recyclable materials.

Everyone seems to agree that transformation toward efficient and effective waste management is imperative.

However, truly transforming the waste management system requires pinpointing and designing solutions for the nodes that are crucial, but often overlooked. One such node is informal workers, mainly pemulung (waste pickers) who provide a crucial role in waste collection, sorting and recycling.

The informal sector plays a major intermediary role at every stage of waste management, from neighborhoods to landfills. A recent study by Unilever and Sustainable Waste Indonesia shows that waste pickers collect 83 percent of the plastic waste in Java, while around 3.7 million people work as waste pickers.

Despite their vital role in society, pemulung are often overlooked and face a precarious work environment. They are the first to be exposed to the adverse environmental and health impacts of waste management, and yet are frequently perceived as a social problem. They are often prevented from entering residential areas to collect waste and provide early sortation in the waste stream.

Moreover, they lack the means for social mobility. They have no alternative livelihoods due to their low education level and other job market restrictions, are low-paid and have no job security or medical coverage.

True transformation of the waste management system requires better recognition of and working conditions for waste pickers. One way to achieve this is through formalization, which would recognize their rights as workers. This should not be a mere administrative formality, but should accord them legal status and recognition to ensure that their needs and rights are addressed. At the same time, formalization will enable their visible integration with the formal waste management system and bring positive impacts, such as improved quality of the recyclables they collect.

Current initiatives such as waste collection apps and digital platforms have taken an approach toward formalizing waste pickers by giving them uniforms and generating fair income based on their performance. While this is a stepping-stone to better livelihood and social recognition, it is important that the government and other stakeholders arrive at a common definition on what it means to formalize waste pickers and what this entails.

The formalization of waste pickers can be achieved through several approaches. First is registered employment at waste management companies. Earlier this year, the Social Affairs Ministry took this approach by employing waste pickers at state-owned construction company PT Waskita Karya.

While this approach is undoubtedly good, it is still limited in scale. Waste management companies have limited capacity to employ the national pool of waste pickers. There are also challenges related to the seasonality of waste and the undetected number of waste pickers.

Second is to urge pemulung to apply for their tax identification number (NPWP) and social security (BPJS). They would not be subject to income tax, as their irregular daily incomes would place them far below the taxable income threshold. However, paying their BPJS premium out of their barely subsistent daily wages will only add to their financial burden. Several municipalities have provided subsidies for local waste pickers, but the scale is also limited.

Third, waste pickers group together to form cooperatives. Associations such as the Indonesia Scavenger Union (IPI) have taken this approach, building its own cooperative through the IPI’s Scavenger Industry Area (KIP) & Scavenger Business Area (KUP) programs and helping waste pickers with civil registration. The IPI is also advocating for the registration, recognition and support of waste pickers from both the national and local governments, as well as industry.

However, funding and fragmented support remain major bottlenecks. Moreover, charitable support still comprises the bulk of the support it receives, instead of formal support that recognizes them as workers.

While these three approaches will help formalize waste pickers, the existing challenges imply that efforts are required at all levels to ensure improvements in the informal sector, which will in turn create broader improvements for the overall waste management system.

At the national level, the government needs to provide legal and social recognition of waste pickers, including through social welfare. This could involve issuing regulations that support waste picker organizations and recognize the rights of waste pickers. At the subnational level, local governments could employ waste pickers under formal contracts, support or subsidize their social security payments and involve them in waste management planning.

Meanwhile, industry could ensure that waste pickers are properly equipped and trained, provide secure wages as well as occupational health and safety insurance, and extend formal contracts to waste picker organizations for certain stages of the supply chain.

At the household level, better waste separation, even simply separating organic and non-organic waste, would help waste pickers in their work.

Finally, residential areas should give access to waste pickers.

Transforming the waste management system requires action from all stakeholders, as well as transforming its crucial human components for the better.

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Angeline Callista is an analyst at Asia Group Advisors (AGA); Brasukra G. Sudjana is AGA Indonesia director and country representative.

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