Borealis, Borouge, Pelita Mekar, Reciki Solusi and Subnational Climate Fund in waste tie-up in Indonesia

Polymer firms Borouge and Borealis, in collaboration with Catalytic Finance Foundation, recycler Pelita Mekar Semesta (PMS) and waste management firm Reciki Solusi Indonesia, are joining forces to establish what they say is Indonesia’s first fully integrated circular waste management ecosystem.

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 catalyse 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 known 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.

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 industry collaboration is said to underscore 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.

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