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Y.B. Suryo

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Disrupting the Dominance of Disposable Packaging in the Indonesian FMCG Industry

Master thesis (2025) - Y.B.S Nugroho, G. van de Kaa, J. Gartner
Indonesia is facing a severe plastic waste crisis, generating nearly 9 million tons of plastic annually, of which only 11% is recycled. Sachet packaging alone contributes 16% of the country’s plastic waste, much of which leaks into rivers and oceans. Despite its convenience and affordability, plastic has become the dominant packaging format due to its protective qualities, low weight, and marketing advantages. However, recycling, which has been highly praised as the one of the best solutions to the plastic crisis, has proven largely ineffective in particularly for small multi-layered packaging. This creates an urgent need for alternative systems. Reusable Packaging Systems (RPS), designed for repeated use, represent a promising contender to disrupt the dominance of disposable plastics in Indonesia’s fast-moving consumer goods (FMCG) industry. To explore the potential adoption of RPS, this study investigated the factors influencing its implementation from the perspective of FMCG firms in Indonesia. A qualitative, three-stage methodology was applied:
• A systematic literature review (PRISMA framework) identifying 115 adoption factors across peer-reviewed journals;
• Two rounds of expert interviews with six industry practitioners in packaging, operations, and corporate affairs from both multinational and national FMCG firms operating in Indonesia, resulting in the identification of 48 factors. The integration of literature and industry insights resulted in the incorporation of 153 adoption sub-factors into eight adoption factor categories
• Multi-Criteria Decision Analysis (MCDA), which specifically employed the Best-Worst Method (BWM) to rank the consolidated factors.

The analysis revealed that Customer Social & Behavioral Drivers (CSBD) ranked as the most critical factor (score 0.18), underscoring that consumer demand, price sensitivity, and convenience decisively shape firms’ willingness to adopt reusable systems. Coercive Pressure (CP), which scored 0.17 was identified as the second most important factor, with experts stressing the need for stronger regulatory enforcement, the role of NGO advocacy, and global headquarters mandates. Technology Quality
(0.14) followed, reflecting concerns about durability, hygiene, and safety of reusable packaging. Other factors, such as Expected Benefits & Usability (EBU) and Operational Feasibility & Applicability (OFA), were rated moderately (0.12 each), while Financial Viability (0.11), Normative Pressure (0.10) ranked lower. Lastly, Partner & Collaborative Networks (PCN) ranked the lowest with a score of 0.07.

These results highlight that while cost and logistics matter, consumer acceptance and regulatory frameworks are the true tipping points for adoption. Experts agreed that Indonesian consumers remain highly price-sensitive, with sachets favored for affordability, and lack widespread environmental awareness. Without regulatory enforcement and supportive incentives, FMCG firms are unlikely to do the transition to RPS voluntarily. Conversely, successful adoption depends on coordinated action between various stakeholders. Government must enforce bans or provide subsidies, firms must ensure durable and hygienic RPS design, NGOs and media must amplify awareness, and waste banks, retailers and logistics partners can provide operational support.

This thesis concludes that accelerating RPS adoption in Indonesia’s FMCG sector requires aligning consumer behavior change with regulation and quality assurance. The study contributes a decision-analytic framework for stakeholders that identifies the relative importance of adoption factors. For policymakers, it emphasizes the need for clear regulations and incentives, and for firms, it highlights the importance of consumer-driven strategies and product quality. ...