Can Environmental Impact and Business Sustainability Go Hand in Hand? Rekosistem’s Ernest Layman Believes So

13 Dec 2024

In 2018, Ernest Layman and Joshua Valentino, two friends united by the same vision of finding concrete solutions to pressing environmental issues, got together and laid the foundations for Rekosistem. The company’s name is a blend of two words: Re- (representing reduce, reuse, recycle, renewable, and other related sustainability principles) and Ekosistem (Indonesian for ‘ecosystem’). With products and services such as waste drop-off stations, waste pickup services, and a mobile phone application, Rekosistem aims to support individuals, communities, and businesses in creating a sustainable ecosystem through responsible waste management. All these efforts support Indonesia’s broader goal of achieving its zero-emission targets by 2060.

While Rekosistem currently focuses on addressing waste issues in Indonesia, its long-term vision is to make sustainability accessible to everyone. The startup aspires to become Southeast Asia’s number one climate-tech company. As of this year, the company has processed over 10 million kilograms of waste. Its achievements have not gone unnoticed, with the founder duo being honoured on the Forbes 30 Under 30 Asia 2022 List under the category of Industry, Manufacturing, and Energy.

For this first edition of the Beyond the Business article series, the Regional Knowledge Centre for Marine Plastic Debris sat down with Ernest Layman, Chief Executive Officer and co-founder of Rekosistem, to hear the fascinating stories behind the founding and running of the company.

The Centre: Can you tell us about your background and how connects to the founding of Rekosistem?

Layman: After graduating from university, I spent about four years working in the sales division of a consumer goods company. That was how I learnt about profit and loss, sales, and how to run a business. Joshua, who is now the Chief Operating Officer of Rekosistem, has a lot of experience in field operations from supporting his family’s poultry business, working on composting projects, and doing a lot of volunteering.

We were both actively involved in student organisations during university, often taking on leadership positions. Our professional experiences in sales and organisational experiences led us to believe that we were capable of starting and running a company, as it is essentially about creating value through what you offer and leading an organisation to reach its desired goals.

Co-founders Joshua Valentino (left) and Ernest Layman with Rekosistem’s waste fleet. (Rekosistem)

What is the story behind the founding of Rekosistem?

After exploring different environmental issues, Joshua and I decided that we should start with waste. This was an issue I had seen up close while I was working in the consumer goods sector, where there is a lot of plastic packaging involved and there is always the question of what to do with the packaging after it is used. Joshua and I noticed that informal waste workers, despite their limited access to education, capital, and tools, managed to earn a living from collecting recyclable waste. We thought, ‘Why couldn’t we do the same?’

So, we gave it a try and started a company called PT Kazanah Hijau Indonesia or Kahiji, based in Bandung (West Java) at the time. We bought a second-hand truck, leased a piece of land, and started collecting, segregating, and processing waste. After about one year, we realised that we were turning a decent profit, and we decided to scale things up. We relocated to Jakarta and began piloting there from the end of 2019 to early 2021. We expanded our operations, started using social media to reach a wider audience, launched a simple mobile phone application, and rolled out a business-to-business programme with office buildings and residential communities. On 21 February 2021, which coincided with the National Waste Awareness Day, we officially launched Rekosistem.

How does Rekosistem balance environmental and operational sustainability?

The key is to focus on a positive operational or business model. There are always interesting projects to do, but not all of them are sustainable for the business. It is not about being picky; it is about prioritising projects that have positive economic value. In the end, when we talk about impact, it is all about scale. To increase scale, we need to be economically viable to ensure that we can continue running and creating impact. We do this through three strategies.

First, we don’t offer free waste pickup services to individuals because it is not economically viable. Instead, we encourage people to segregate their waste and take it to our Reko Waste Stations, where they can exchange recyclable items for points. Second, we charge a fee for picking up and processing mixed waste at our waste management facilities. We mostly target housing clusters so that we receive larger volumes of waste. Third, for now, we focus on minimising instead of eliminating waste. We try to bring as much recyclable waste as possible to processing facilities to reduce the amount ending up in landfills.

Rekosistem’s waste pickup services for residential areas. (Rekosistem)

What challenges have you faced over the years?

The biggest challenge now is to stay focused. Under the broad umbrella of waste issues, there are many interesting topics and opportunities to explore but they can sometimes distract us from our main goals.

Another challenge is changing people’s mindset on the value of waste. Sometimes, people are already aware of waste issues but then there is the idea that waste management services should be free or that rewards should be given for those who recycle. Frankly, we are quite against this. While recycling can generate some economic returns, not all waste is profitable. In the end, where there is waste, there is a cost.

The third challenge is access. Waste is an issue everywhere, but in Indonesia, waste management facilities and infrastructure, be it government-run or privately run, are still mostly concentrated in big cities on Java Island.

Do you think we will completely eliminate waste and how will it affect Rekosistem’s work in the future?

As long as there are production and consumption activities, there will always be waste. The real challenge is how the generated waste is managed. Rekosistem is committed to being the solution to waste management challenges. Maybe for now, the challenge is with plastic waste. In the future, even if we eventually succeed in eliminating plastics, other materials will emerge as substitutes and become new types of waste.

That is why we are not worried about not being able to continue our work. As long as we can adapt our products and services to meet consumer needs and address new materials being used, we will survive. Furthermore, while our focus for the next five years is on waste, our target is to go beyond that and tackle other climate issues too.

Operations at Rekosistem’s waste segregation station. (Rekosistem)

What is the work like at Rekosistem?

We give our employees a lot of freedom but expect them to be responsible with it. They can work from home several days a week and set their own schedules, but at the same time, we expect them to perform well. We expect them to be smart in managing their time and juggling their personal and professional lives to deliver the expected results. We have a very open style of communication within the organisation. As a leader, I am straight to the point with my team – I say things the way they are, whether positive or negative, without any hidden messages or agenda. We also try to encourage a healthy and green lifestyle by organising team sports and giving incentives for employees who commute to work by public transport.

What values do you cultivate within the company?

We have a set of principles called the ‘Reko Ways,’ which are based on three core ideas: do the right things, do the things right, and do the big things. Do the right things by showing integrity, do the things right by showing professionalism, and do the big things by creating impact for society. We also have ‘DO BIG,’ which stands for Diversity and inclusion, Ownership, Bold and Can-Do Attitude, Integrity, and Growth Mindset. We try to instil these values in our managers and leadership team so that they pass the message and cultivate those same values within their teams. Having a clear company vision, mission, goals, policies, and values helps us maintain our company culture as the company grows.

Rekosistem’s clear company vision, mission, goals, policies, and values help to maintain the company culture as it grows. (Rekosistem)

Often there is more bad news on environmental issues than good. That can sometimes be demoralising. How do you and your team stay optimistic?

First of all, when we receive positive messages or appreciation from our users who share our hopes and concerns for the environment, we are reminded that we are not alone in our efforts. Second, when we hear bad news about the environment, instead of feeling down, we actually feel more motivated to work harder and faster to resolve the issues. Sometimes we compare the conditions of our country to that of others with more advanced waste management systems to take note of the best practices to follow.

Do you have any advice for budding ecopreneurs who also want to make a big impact?

Stay true to yourself. Know what success means to you and what matters most to you, and pursue it. If success is living abroad, find an expat role. If success is having a lot of money, start a business that generates a lot of money. But if your goal is to create an impact, build a business that is economically viable and impactful. Don’t just follow what others are doing; the journey won’t be easy, but it will be worthwhile. Staying true to yourself and doing what really matters most to you are what will help you run a long entrepreneurial marathon.

Author
Ivana Suradja
Ivana Suradja

Research Associate

In 2018, Ernest Layman and Joshua Valentino, two friends united by the same vision of finding concrete solutions to pressing environmental issues, got together and laid the foundations for Rekosistem. The company’s name is a blend of two words: Re- (representing reduce, reuse, recycle, renewable, and other related sustainability principles) and Ekosistem (Indonesian for ‘ecosystem’). With products and services such as waste drop-off stations, waste pickup services, and a mobile phone application, Rekosistem aims to support individuals, communities, and businesses in creating a sustainable ecosystem through responsible waste management. All these efforts support Indonesia’s broader goal of achieving its zero-emission targets by 2060.

While Rekosistem currently focuses on addressing waste issues in Indonesia, its long-term vision is to make sustainability accessible to everyone. The startup aspires to become Southeast Asia’s number one climate-tech company. As of this year, the company has processed over 10 million kilograms of waste. Its achievements have not gone unnoticed, with the founder duo being honoured on the Forbes 30 Under 30 Asia 2022 List under the category of Industry, Manufacturing, and Energy.

For this first edition of the Beyond the Business article series, the Regional Knowledge Centre for Marine Plastic Debris sat down with Ernest Layman, Chief Executive Officer and co-founder of Rekosistem, to hear the fascinating stories behind the founding and running of the company.

The Centre: Can you tell us about your background and how connects to the founding of Rekosistem?

Layman: After graduating from university, I spent about four years working in the sales division of a consumer goods company. That was how I learnt about profit and loss, sales, and how to run a business. Joshua, who is now the Chief Operating Officer of Rekosistem, has a lot of experience in field operations from supporting his family’s poultry business, working on composting projects, and doing a lot of volunteering.

We were both actively involved in student organisations during university, often taking on leadership positions. Our professional experiences in sales and organisational experiences led us to believe that we were capable of starting and running a company, as it is essentially about creating value through what you offer and leading an organisation to reach its desired goals.

Co-founders Joshua Valentino (left) and Ernest Layman with Rekosistem’s waste fleet. (Rekosistem)

What is the story behind the founding of Rekosistem?

After exploring different environmental issues, Joshua and I decided that we should start with waste. This was an issue I had seen up close while I was working in the consumer goods sector, where there is a lot of plastic packaging involved and there is always the question of what to do with the packaging after it is used. Joshua and I noticed that informal waste workers, despite their limited access to education, capital, and tools, managed to earn a living from collecting recyclable waste. We thought, ‘Why couldn’t we do the same?’

So, we gave it a try and started a company called PT Kazanah Hijau Indonesia or Kahiji, based in Bandung (West Java) at the time. We bought a second-hand truck, leased a piece of land, and started collecting, segregating, and processing waste. After about one year, we realised that we were turning a decent profit, and we decided to scale things up. We relocated to Jakarta and began piloting there from the end of 2019 to early 2021. We expanded our operations, started using social media to reach a wider audience, launched a simple mobile phone application, and rolled out a business-to-business programme with office buildings and residential communities. On 21 February 2021, which coincided with the National Waste Awareness Day, we officially launched Rekosistem.

How does Rekosistem balance environmental and operational sustainability?

The key is to focus on a positive operational or business model. There are always interesting projects to do, but not all of them are sustainable for the business. It is not about being picky; it is about prioritising projects that have positive economic value. In the end, when we talk about impact, it is all about scale. To increase scale, we need to be economically viable to ensure that we can continue running and creating impact. We do this through three strategies.

First, we don’t offer free waste pickup services to individuals because it is not economically viable. Instead, we encourage people to segregate their waste and take it to our Reko Waste Stations, where they can exchange recyclable items for points. Second, we charge a fee for picking up and processing mixed waste at our waste management facilities. We mostly target housing clusters so that we receive larger volumes of waste. Third, for now, we focus on minimising instead of eliminating waste. We try to bring as much recyclable waste as possible to processing facilities to reduce the amount ending up in landfills.

Rekosistem’s waste pickup services for residential areas. (Rekosistem)

What challenges have you faced over the years?

The biggest challenge now is to stay focused. Under the broad umbrella of waste issues, there are many interesting topics and opportunities to explore but they can sometimes distract us from our main goals.

Another challenge is changing people’s mindset on the value of waste. Sometimes, people are already aware of waste issues but then there is the idea that waste management services should be free or that rewards should be given for those who recycle. Frankly, we are quite against this. While recycling can generate some economic returns, not all waste is profitable. In the end, where there is waste, there is a cost.

The third challenge is access. Waste is an issue everywhere, but in Indonesia, waste management facilities and infrastructure, be it government-run or privately run, are still mostly concentrated in big cities on Java Island.

Do you think we will completely eliminate waste and how will it affect Rekosistem’s work in the future?

As long as there are production and consumption activities, there will always be waste. The real challenge is how the generated waste is managed. Rekosistem is committed to being the solution to waste management challenges. Maybe for now, the challenge is with plastic waste. In the future, even if we eventually succeed in eliminating plastics, other materials will emerge as substitutes and become new types of waste.

That is why we are not worried about not being able to continue our work. As long as we can adapt our products and services to meet consumer needs and address new materials being used, we will survive. Furthermore, while our focus for the next five years is on waste, our target is to go beyond that and tackle other climate issues too.

Operations at Rekosistem’s waste segregation station. (Rekosistem)

What is the work like at Rekosistem?

We give our employees a lot of freedom but expect them to be responsible with it. They can work from home several days a week and set their own schedules, but at the same time, we expect them to perform well. We expect them to be smart in managing their time and juggling their personal and professional lives to deliver the expected results. We have a very open style of communication within the organisation. As a leader, I am straight to the point with my team – I say things the way they are, whether positive or negative, without any hidden messages or agenda. We also try to encourage a healthy and green lifestyle by organising team sports and giving incentives for employees who commute to work by public transport.

What values do you cultivate within the company?

We have a set of principles called the ‘Reko Ways,’ which are based on three core ideas: do the right things, do the things right, and do the big things. Do the right things by showing integrity, do the things right by showing professionalism, and do the big things by creating impact for society. We also have ‘DO BIG,’ which stands for Diversity and inclusion, Ownership, Bold and Can-Do Attitude, Integrity, and Growth Mindset. We try to instil these values in our managers and leadership team so that they pass the message and cultivate those same values within their teams. Having a clear company vision, mission, goals, policies, and values helps us maintain our company culture as the company grows.

Rekosistem’s clear company vision, mission, goals, policies, and values help to maintain the company culture as it grows. (Rekosistem)

Often there is more bad news on environmental issues than good. That can sometimes be demoralising. How do you and your team stay optimistic?

First of all, when we receive positive messages or appreciation from our users who share our hopes and concerns for the environment, we are reminded that we are not alone in our efforts. Second, when we hear bad news about the environment, instead of feeling down, we actually feel more motivated to work harder and faster to resolve the issues. Sometimes we compare the conditions of our country to that of others with more advanced waste management systems to take note of the best practices to follow.

Do you have any advice for budding ecopreneurs who also want to make a big impact?

Stay true to yourself. Know what success means to you and what matters most to you, and pursue it. If success is living abroad, find an expat role. If success is having a lot of money, start a business that generates a lot of money. But if your goal is to create an impact, build a business that is economically viable and impactful. Don’t just follow what others are doing; the journey won’t be easy, but it will be worthwhile. Staying true to yourself and doing what really matters most to you are what will help you run a long entrepreneurial marathon.

Author
Ivana Suradja
Ivana Suradja

Research Associate

Ornament

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