Borouge, Borealis, CFF and PMS join forces to study polyolefin recycling ecosystem in Indonesia
- This collaboration underscores the companies’ commitment to drive system change to boost circularity through collaboration and innovation to provide sustainable solutions that address global challenges
- Borouge and Borealis will be supported by Catalytic Finance Foundation in executing a feasibility study as part of the Subnational Climate Fund Technical Assistance program
- The study aims to assess the feasibility of establishing a greenfield plastics recycling facility in East Java, Indonesia, and evaluating the full process chain
- The project will be carried out in partnership with local waste management and recycling partners in Indonesia with the aim to establish an ecosystem that turns waste into valuable feedstock to produce high-quality recycled polyolefins, thereby catalysing the transition to a circular economy
Borouge and Borealis, in collaboration with Catalytic Finance Foundation, Pelita Mekar Semesta (PMS) and Reciki Solusi Indonesia, are joining forces in order to establish Indonesia’s first fully integrated circular waste management ecosystem.
This initiative is part of Borouge and Borealis’ strategic vision to accelerate a transition towards a structural change to establish a circular economy of plastics in Indonesia. As champions of innovative and sustainable polyolefin solutions, Borouge and Borealis demonstrate their commitment through initiatives and partnerships that support waste reduction and the promotion of recycling.
The partnership will kick off with a feasibility study funded by the Subnational Climate Fund Technical Assistance with the following scope:
- To develop and establish a fully integrated circular waste management and polyolefin recycling ecosystem in Indonesia.
- To transform plastic waste into a valuable feedstock for recycling, leveraging best industry practices and technology to produce high-quality recycled polyolefins.
Maitha Al Marashi, Vice President, Sustainability, Borouge, said: “Indonesia’s rapid development aligns with our vision for sustainable innovation. This partnership is central to Borouge’s regional growth strategy as we drive the industry’s transition to a circular economy by reducing waste, increasing recycled content, and delivering value-added sustainable solutions.”
Markus Horcher, Borealis Vice President Sustainability & Public Affairs said: “By collaborating to create Indonesia’s first fully integrated circular waste management and polyolefin recycling ecosystem, we demonstrate our commitment to a plastics circular economy and addressing waste pollution on a large scale. Through collaboration and innovative solutions, we aim to transform waste into a valuable resource, ensuring materials retain their value and benefit the environment for generations.”
The Subnational Climate Fund (SCF) managed by Pegasus Capital Advisors is focused on developing sustainable infrastructure and agriculture investments, with a dedicated Technical Assistance facility (TA) managed by the International Union for Conservation of Nature (IUCN) and executed in partnership with Gold Standard and Catalytic Finance Foundation. This project is fully aligned with SCF’s mission to support sustainable infrastructure in emerging markets, combining concessional finance and technical assistance to catalyze climate-positive, nature-positive investments—here by transforming Indonesia’s plastic waste challenge into a bankable circular economy solution with strong environmental and social co-benefits.
PMS and Reciki, leaders in waste management and recycling in Indonesia, bring invaluable local expertise to the partnership. Their knowledge of the Indonesian context complements Borouge and Borealis’ advanced technology capabilities, enabling the production of high-quality recycled polyolefins suitable for diverse market applications.
Willyam Wiranda, CEO Pelita Mekar Semesta said: “In our journey to drive the circular economy within the country, this collaboration marks a significant milestone for improving plastic waste recycling. It is crucial for PMS, as one of the leading plastic recyclers, to intensify efforts in preventing waste from entering the environment. Together with our partners we aim to present a tangible role model for the ecosystem in Indonesia.”
Bhima Aries Diyanto, Founder and CEO Reciki Solusi Indonesia said: "We are confident that our collaboration can revolutionize Indonesia’s waste management- and plastics recycling industry, significantly reduce the country's plastic pollution crisis, and extract greater value from used materials. We are grateful to all our partners for their dedication in making this possible."
Additionally, the partnership will align with Project STOP, an initiative co-founded by Borealis and Systemiq that partners with governments and communities in Indonesia to design and implement circular waste management systems to reduce ocean pollution. The collaboration supports ongoing efforts to reduce marine litter, improve livelihoods, and contribute to in-country value and economic development.
This industry collaboration underscores the companies’ commitment to sustainable, circular solutions tailored to local needs. By partnering closely with the Subnational Climate Fund consortium partners, local industry partners, Borouge and Borealis seek to foster a culture of circularity, reduce waste and deliver value-added, sustainable solutions to meet the industry’s evolving demands.
The feasibility study marks the beginning of an exciting journey towards a more sustainable future in Indonesia. The partners are committed to working together to achieve the ambitious goals outlined in the agreement to drive positive change.
Comments