Closing the Loop: A Circular Supply Chain Framework for Sustainable PET Beverage Packaging in Indonesia

Abstract

The beverage manufacturing industry in Indonesia faces increasing pressure to address plastic waste, particularly from single-use PET bottles, which contribute to significant environmental issues including resource depletion, carbon emissions, and waste leakage into landfills and waterways. Conventional linear supply chain practices continue to rely heavily on virgin materials with limited post-consumer recovery, highlighting the need for more sustainable approaches. This study aims to develop a practical circular supply chain implementation strategy tailored for sustainable beverage production in Indonesia. Using a qualitative project-based approach, the research combined field observations at a beverage production facility in West Java, supply chain mapping, and analysis of secondary data from industry reports and circular economy literature. Key challenges identified include heavy dependence on imported PET resin, low collection rates of post-consumer bottles, weak reverse logistics, and limited stakeholder collaboration. The proposed model integrates community-based PET collection, partnerships with local recyclers, incorporation of recycled PET content, optimisation of reverse logistics through backhauling, and digital traceability systems. Preliminary assessments indicate that moderate collection rates of 20–40% in targeted areas could substantially reduce packaging waste, improve material efficiency, and lower carbon emissions. This framework offers a feasible pathway for beverage producers to transition toward circular operations while supporting national environmental objectives.