Sirsak, an Indonesia-based waste management startup, has raised US$600,000 in pre-seed funding to enhance its packaging waste recovery program.

The funding round was led by Openspace Ventures, with contributions from The Radical Fund.

Founded in 2023, Sirsak helps brands meet Extended Producer Responsibility (EPR) regulations by linking them with waste pickers, aggregators, and recyclers.

The funds will be used to build a new traceability system, study low-value packaging, and grow its recycling network.

Sirsak plans to recover 4,000 tons of packaging waste and set up 1,000 waste collection points in the near future.

The startup operates within existing waste management value chains.

It offers financial and in-kind incentives to stakeholders, including waste pickers, to aid EPR compliance.

Its long-term goal is to divert 100,000 tons of packaging waste by 2030 to reduce environmental impact and carbon dioxide emissions.

🔗 Source: Sirsak

🧠 Food for thought

1️⃣ Indonesia’s waste management evolution creates fertile ground for tech solutions

Indonesia’s waste crisis has been building for decades, with the country now generating over 60 million tons of waste annually with only 10% of plastics being recycled 1.

The sector’s transformation began with community-based initiatives like waste banks in 2008, catalyzed by environmental disasters such as the 2001 Surabaya landfill crisis and the 2005 Leuwigajah landslide 23.

This evolution has now reached a technology-enabled phase where startups like Sirsak are leveraging digital solutions to address institutional challenges at scale, particularly as Indonesia maintains its position as the world’s second-largest contributor to ocean plastic pollution 45.

The timing is strategic as Indonesia implements Extended Producer Responsibility (EPR) regulations, which mandate producers to develop waste reduction roadmaps and achieve a 30% waste reduction by 2029 6.

With only 42 producers having submitted required EPR roadmaps as of 2023, there’s substantial market opportunity for solutions that can help brands achieve compliance through transparent waste management systems 6.