Circular Economy Borealis, Partners to Develop Circular Waste Management Ecosystem in Indonesia

Borouge, Borealis, Pelita Mekar Semesta, Reciki Solusi Indonesia and Subnational Climate Fund have come together to establish Indonesia’s first fully integrated circular waste management ecosystem.

Abu Dhabi/UAE – 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 leaders in providing innovative and sustainable polyolefin solutions, their commitment is demonstrated through various initiatives and partnerships aimed at reducing waste and promoting recycling.

The partnership will kick off with a feasibility study funded by the Subnational Climate Fund Technical Assistance. The scope of this study is as follows:

• 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.

PT Pelita Mekar Semesta and PT Reciki Solusi Indonesia are renowned for their expertise in waste management and recycling in Indonesia. Their local knowledge and experience are invaluable in implementing effective solutions tailored to the Indonesian context, while Borouge and Borealis are complementing with their advanced technology know-how to enable the production of high-quality recycled polyolefins suitable for various applications in the market.

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."

The parties further aim to work closely 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 unique 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 aim to foster a culture of circularity, reduce waste leakages to deliver value-added sustainable solutions to meet the industry’s evolving demands for sustainable solutions.

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.

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