ADB unveils tool to digitalize plastics chain, spotlighting Indonesia and Vietnam

The ADB brief introduces a pioneering digital maturity assessment tool to measure how ready countries are to digitalize their plastics value chains, with case studies in Indonesia and Viet Nam. It shows that while both nations have strong potential, gaps in awareness, skills, and monitoring must be closed to achieve circular plastics economies.

The Asian Development Bank, working in collaboration with Seureca, DT Global, and its Agriculture, Food, Nature, and Rural Development Sector Office, has released a new brief that investigates how digital transformation could reshape the plastics value chain across Asia. The study comes against a grim backdrop: oceans already hold an estimated 150 million metric tons of plastic, and a further 8 to 12 million tons enter annually, much of it from mismanaged waste streams in Asian countries. To address this, the brief introduces a digital maturity assessment tool, a first-of-its-kind framework for evaluating national readiness to harness digitalization in building circular plastics economies.

The report positions digital technology as a potential game changer. Mobile apps, artificial intelligence, blockchain-enabled systems, and online platforms can link informal waste pickers with recyclers, ease supply and demand mismatches for recycled materials, improve financial transparency, and generate real-time data for policymakers. Yet these solutions depend heavily on what the brief calls “national enablers”: infrastructure, digital literacy, governance and regulation, financial inclusion, and cybersecurity. Without these foundations, the transformative potential of technology risks being out of reach.

Measuring Readiness Through a Digital Maturity Grid

To capture this complexity, the brief divides digitalization into five core components: reporting and monitoring of plastics; the physical supply chain; the financial supply chain; awareness and skills; and plastic pollution identification and monitoring. Each is assessed through a digital maturity grid, which measures progress on a five-tier scale. At the bottom is the “initiating” stage, where digital awareness is minimal. At the top is “pioneering,” where countries deploy world-class digital systems that not only function efficiently but also innovate globally.

Importantly, the grid is not meant to rank countries against each other. Instead, it is a diagnostic tool, enabling governments to see where they stand, set goals, and chart road maps for digital transformation. It frames questions such as: how comprehensive are reporting systems, how accessible are digital financial tools to informal waste pickers, or how effective are citizen-led apps for monitoring pollution? The answers form a baseline for national discussions with stakeholders and partners.

Indonesia: Innovation Amid Uneven Progress

Indonesia’s plastics value chain currently sits between “enabling” and “integrating” stages, with an average digital maturity score of 2.54. The weakest area is awareness and skills, scoring 2.21, reflecting the limited use of digital marketing tools for waste and a general lack of digital training, especially in the informal sector. Financial and physical supply chain solutions are available mainly in Jakarta and Bali, leaving much of the archipelago underserved.

Nevertheless, the report finds encouraging sparks of innovation. Tech-savvy private businesses are experimenting with platforms to track, monitor, and report plastic waste. A central database for plastics monitoring, while still limited in accuracy and participation, provides a foundation for future expansion. The brief suggests that targeted training programs, particularly for informal collectors and small recyclers, will be essential. Such efforts could help Indonesia lift its maturity level and prepare for obligations under the forthcoming Global Plastics Treaty, which aims to set global standards for addressing plastic pollution.

Vietnam: Strong Infrastructure, Gaps in Awareness

Vietnam scores slightly higher, with an average maturity level of 2.72. Its greatest strength lies in the financial supply chain, which scored 3.09. Digital payments are widespread and supported by a National Cyber Security Strategy that has boosted trust in online transactions. The country’s digital infrastructure is robust: nearly universal 4G coverage and ambitious plans to extend 5G to over half the population by 2025.

Yet challenges remain. Reporting and monitoring of plastics earned a score of 2.56, and awareness and skills lag at 2.36. Monitoring systems are currently limited to large-scale actors, leaving smaller players outside the data ecosystem. A breakthrough is expected with the adoption of the Grac software, a digital waste management platform that promises to provide real-time monitoring and nationwide integration once fully implemented. The report notes that increased data collection through Grac could also power more effective public awareness campaigns, helping citizens and businesses understand and act on waste management practices.

A Road Map for Global Replication

Both Indonesia and Vietnam demonstrate how the digital maturity assessment tool can guide governments and stakeholders toward strategic action. By simplifying complex concepts into accessible scenarios, the tool helps recyclers, brand owners, informal waste collectors, and technology entrepreneurs align on shared priorities. It also exposes disparities between groups’ visions, creating a platform for dialogue. The tool is not static but iterative: as countries make progress, their ambitions and strategies will evolve.

The ADB brief makes clear that the assessment is only a first step. The real work lies in using the findings to shape road maps, build capacity, and mobilize investment. Development partners are encouraged to replicate the tool in other contexts, adapting it to local realities but maintaining its focus on circularity. By embedding digitalization into national action plans and preparing for the international treaty on plastics, countries can transform plastic pollution from an escalating crisis into an opportunity for innovation and inclusion.

The study argues that digitalization is not a silver bullet, but it can be a powerful accelerator when supported by robust national enablers and inclusive strategies. Indonesia’s uneven progress and Vietnam’s gaps in awareness show the fragility of current systems, but also the potential for rapid advances if governments, private enterprises, and communities act together. The digital maturity assessment tool, as the first of its kind, provides a structured and replicable way for countries to understand their starting point and map their journey toward a circular plastics economy. As global negotiations on plastics pollution gather pace, such tools could prove invaluable in ensuring that national ambitions are realistic, inclusive, and aligned with international commitments.