Borealis and Borouge launch circular waste management system in Indonesia

Borealis and Borouge, in collaboration with Pelita Mekar Semesta, Reciki Solusi Indonesia, and the Subnational Climate Fund have partnered to establish a circular waste management system in Indonesia. 

The partnership aims to develop a fully integrated and circular waste management and polyolefin recycling system in Indonesia. It will begin with a feasibility study funded by the Subnational Climate Fund Technical Assistance. 

Markus Horcher, Borealis’ vice president for Sustainability and Public Affairs, says: “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.”

Borouge and Borealis are providing their advanced technology to enable the production of high-quality recycled polyolefins suitable for various market applications.

Harnessing local expertise 

Waste management companies Pelita Mekar Semesta and Reciki Solusi Indonesia will use their knowledge and experience to implement effective solutions tailored to the Indonesian context. 

Willyam Wiranda, CEO at Pelita Mekar Semesta, says: “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 Pelita Mekar Semesta to intensify efforts in preventing waste from entering the environment.” 

The collaboration also aims to transform plastic waste into feedstock suitable for recycling. The Subnational Climate Fund, managed by Pegasus Capital Advisors, supports sustainable infrastructure and agriculture investments and aims to finance and provide technical assistance.

Bhima Aries Diyanto, founder and CEO at Reciki Solusi Indonesia, says: “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.”

Indonesia’s circularity 

According to a recent UK study, convenience and economic barriers prevent Indonesia from adopting circular packaging solutions. The researchers advocate for co-designing solutions with local businesses, updating regulations, and increasing consumer education that fosters trust and environmental awareness.

In this new partnership, the companies also aim to work with Project Stop, an initiative co-founded by Borealis and Systemiq, that partners with governments and communities in Indonesia to implement circular waste management systems to reduce ocean pollution.

Last month, Borealis announced a €49 million (US$57.44 million) investment to scale up production of Borstar Nextension PP at its manufacturing site in Burghausen, Germany.

In addition, it partnered with Project Electro, an EU-funded initiative to develop electrified, high-efficiency recycling technologies capable of turning low-quality waste into premium raw materials.