Producer Perspective on Extended Producer Responsibility Concept: An Indonesian Case Study

Abstract

The rapid development of manufacturing technology has driven the industrial revolution which has an impact on economic growth, especially in developing countries such as Indonesia. Electronic waste or waste electrical and electronic equipment (WEEE) is one of the negative impacts of technological development. Improper handling of electronic waste may cause negative impacts on the environment and human health. Extended Producer Responsibility (EPR) is an environmental policy approach that is oriented towards producer responsibility. However, EPR development in developing countries is still lacking, where the collection and recycling system has not been adequately addressed. On the other hand, motivation of producers from the industrial sector does not yet have enough attention to expand their product responsibilities to the post-consumption stage. This study explores the key factors that can motivate producers to fully adopt the EPR concept in the electronics industry in Indonesia. Theory of planned behavior (TPB) was adopted and developed to build models in the context of EPR. This model is formed by three main constructs: attitude, subjective norm and perceived behavioral control, and three additional constructs identified from literature review and interviews namely economic incentives, administrative incentives and logistic incentives. The results obtained from path analysis that administrative incentive can influence intentions while logistic incentives can influence the behavior of producers adopting EPR.