By: Nur Almira Rahardyan, Circular Economy Project Lead – Bestari Sustainability

“I’m already juggling rising ingredients costs, delivery commissions, and customer complaints, now I’m supposed to change packaging too?”

This quiet comment from a small food merchant captures the heart of a problem we rarely unpack: every meal delivered is a packaging decision, and every decision is a trade-off between convenience, cost, and climate.

Indonesia is at the center of a plastic crisis, in 2023 alone, the country generated over 40.8 million tons of waste, with nearly one-fifth (19.3%) of it being plastic, and the biggest contributor is the way we eat; fast, delivered, wrapped.

From warteg meals to artisan coffee, nearly every order arrives with layers of plastic, bags, lids, straws, cutlery, sachet, and most are used for minutes but last for centuries. The rise of food delivery since the pandemic has only accelerated this trend, because what used to be occasional indulgence is now an everyday habit, while behind every neatly packed meal lies a business navigating a complex, and often invisible, packaging dilemma.

The Trade Offs Merchants Face

The F&B sector stands at a crossroads. For many F&B businesses, particularly MSMEs, sustainable packaging is not just a climate issue, it is a business decision. Some merchants have begun switching to biodegradable straws or recyclable containers, while others add “no cutlery” default options on ordering apps, yet for many small and medium businesses, the idea of switching feels costly, confusing, and risky.

When we talk with merchants, the dilemma gets clearer. Some of them are confused to get sustainable packaging at a decent price, customers will give bad ratings if the cutlery is removed, and others have the intention to do transition but having problems in finding leak-proof sustainable packaging.

Why does it happen? Because packaging is not a standalone decision. Merchants do not just look for “eco-friendly”, but they mainly evaluate packaging based on cost efficiency, customer satisfaction, food safety, microwaveability, hygiene standards, and brand aesthetics. If sustainable packaging falls short on any of these criteria, there will be a large risk of merchants to keep the business going.

These practical considerations often dominate business decisions, and sustainability alternatives likely slips down the priority list because the risk feels immediate and personal, like absorbing higher cost, losing customers and even compromising food safety. This is the main factor why merchants delay switching, even if the principles are aligned with them.

The New Realities of Indonesia’s Waste Regulations

The tension between business risks and sustainability goals is no longer something merchants can set aside. What once felt like a voluntary step is now part of Indonesia’s national waste agenda. Under the RPJMN 2025–2029, the country aims to manage 100% of its waste by 2029, making packaging practices that were once overlooked a central focus.

In order to achieve the target, Indonesia has set a binding law to regulate waste management nationally. Through Government Regulation No. 81/2012 and MoEF Regulation No. 75/2019 require producers, including F&B merchants to reduce waste through reduction, reuse, and substitution. By 2030, five categories of single-use plastic packaging, starting from plastic bags, straws, cutlery, styrofoam, and sachets, will be officially banned.

Despite the target and regulation set, a study from Bestari Sustainability (2025) shows that only 45.7% of merchants are even aware of this regulation, indicating a low awareness and the action even lower. This disconnect is alarming, especially given how much of the plastic problem traces back to packaging.

While not all packaging is the enemy, much of what’s in circulation today is both excessive and unsuitable, especially in delivery settings. Our research shows widespread use of materials are: hard to recycle, too small to collect, unnecessary or redundant.

In reality, recyclable plastics like PET or PP, for many cases do not guarantee recovery. For example, items like plastic bags, cutlery, and straws, which are technically recyclable, often end up in landfills due to low recovery rates and poor segregation infrastructure.

Balancing Practicality and Sustainability in Packaging

Indonesia has not started from zero, because there are existing alternatives already and they are growing steadily. The options range from pure paper-based boxes to recyclable containers and biodegradable materials made from cassava or sugarcane, and it continues to evolve.

Each has trade-offs: paper breaks down easily but lacks durability; recyclable plastics are cheap and sturdy but rarely recovered; compostables are eco-friendly but still expensive; reusables are the best for the environment, but need a supporting system to work. No option is perfect, but the shift has begun, and every step counts.

The F&B industry sits at the intersection of plastic use and consumer experience. It is also where change can be most visible and immediate. When even a small share of merchants make the switch, customers notice. As suppliers scale production, price gaps narrow, and with stronger collaboration from all stakeholders, transition can accelerate exponentially.

As one of quote my favorite transitioned merchant put it:

“It is hard to change, but not changing feels riskier now.”