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Industry and Trade

Bali’s plastic-bottle ban triggers backlash from beverages industry

The new regulation prohibits the production, distribution and sale of single-use plastic water bottles smaller than one litre.

Dhanam News Desk

A sweeping ban on small plastic water bottles has come into effect in Bali, drawing strong opposition from Indonesia’s beverage and plastics industries even as environmental advocates hail it as a critical step towards tackling the island’s escalating waste crisis.

Bali in Indonesia is a highly popular tourist destination renowned for its beautiful beaches, lush landscapes, vibrant culture, and rich traditions. It's known as a tropical paradise with a mix of adventure and relaxation, attracting travellers from around the globe.

Ban across the value chain

The new regulation, which took effect last month, prohibits the production, distribution and sale of single-use plastic water bottles smaller than one litre — the first such policy in Indonesia. It is part of Governor I Wayan Koster’s wider Bali Clean Waste Movement, launched in March, which aims to make the island of 43 lakh people waste-free by 2027.

Plastic bags already banned

The policy builds on a 2018 gubernatorial decree banning plastic bags in shops and restaurants, a measure later adopted by cities including Jakarta, the South China Morning Post newspaper reported. The latest regulation also mandates waste segregation at the source across public institutions, businesses, schools, markets and religious sites.

Koster has urged beverage companies to switch from plastic to glass bottles. He warned that villages failing to comply could lose access to financial support and incentives, while non-compliant businesses risked having their permits revoked and being publicly named and shamed by the provincial government.

Bali currently produces around 3,436 tonnes of waste daily. He highlighted the problem of ocean-borne debris, noting that much of the plastic washing up on Bali’s beaches during the monsoon season originates from other Indonesian provinces.

Industry decries policy impact

Despite supporting the environmental goals behind the ban, business leaders have criticised its potential economic impact.

“The intention is good, but banning the production of drinking water in containers smaller than one litre disrupts the food and beverage industry,” said I Nengah Nurlaba, head of the Indonesian Employers Association in Bali.

Triyono Prijosoesilo, chairman of the Soft Drink Industry Association, warned that the regulation could shrink industry profits by 5%. “The Bali market is significant for ready-to-drink beverages. It attracts many tourists and sees strong economic activity, so the impact is considerable,” he told reporters recently.

Fajar Budiono, secretary general of the Indonesian Olefins, Aromatics and Plastics Association, cautioned that well-meaning bans can create unintended consequences. “Plastic bag bans led to a surge in multipurpose bags, some still made of plastic. Plastic straws were replaced with bamboo and metal ones that need dish soap to clean — polluting water and encouraging the growth of water hyacinths that clog rivers.”

Greens welcome the ban

Environmental groups, however, have applauded the ban. Ni Made Diyah Darma Yanti, single-use plastic reduction coordinator at PPLH Bali, described it as a “positive breakthrough.”

In 2023, a waste audit by the group Sungai Watch revealed that nine of the top 10 polluting brands in Bali and Banyuwangi rivers were bottled drinks — the worst offender being a mineral water brand owned by French conglomerate Danone.

As Bali seeks to balance tourism, development and environmental stewardship, the controversial ban signals a bold, if contested, shift toward sustainability — one that will likely remain in the spotlight in the months ahead.

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