Borealis, Borouge roll out integrated circular waste system in Indonesia

INDONESIA – Borealis and Borouge have joined forces with local partners to establish what they describe as Indonesia’s first fully integrated circular waste management and polyolefin recycling ecosystem.

The collaboration brings together waste management firms Pelita Mekar Semesta and Reciki Solusi Indonesia, alongside the Subnational Climate Fund, managed by Pegasus Capital Advisors.

The initiative will begin with a feasibility study funded through the fund’s technical assistance facility.

The partners aim to develop an end-to-end system that transforms plastic waste into high-quality recycled polyolefins for use in a range of market applications.

Borealis and Borouge will deploy their advanced recycling and compounding technologies to ensure recyclate quality and consistency.

Markus Horcher, Borealis’ vice president for Sustainability and Public Affairs, said the project underscores the group’s commitment to scaling plastics circularity in high-leakage markets.

“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,” he noted.

Harnessing local expertise

Local implementation will be led by Pelita Mekar Semesta and Reciki Solusi Indonesia, which will tailor collection, sorting and processing systems to Indonesia’s regulatory and socio-economic landscape.

Willyam Wiranda, CEO of Pelita Mekar Semesta, described the initiative as a milestone in preventing plastic waste leakage.

Bhima Aries Diyanto, founder and CEO of Reciki Solusi Indonesia, added that the collaboration could help “revolutionize Indonesia’s waste management and plastics recycling industry” while extracting greater value from used materials.

The partnership will also align with Project STOP, a program co-founded by Borealis and Systemiq, which works with Indonesian municipalities to prevent ocean plastic leakage through circular systems.

Policy and investment momentum

Indonesia faces persistent structural barriers to circular packaging adoption, with recent UK research highlighting convenience gaps, economic constraints and limited consumer awareness as key hurdles.

The study recommends co-designing solutions with local businesses, regulatory updates and improved public education to accelerate uptake.

The Indonesian rollout comes amid broader investment activity by Borealis. Last month, the company announced a €49 million (US$57.44 million) investment to expand Borstar Nextension PP production at its Burghausen site in Germany.

In It has also partnered with Project Electro, an EU-funded initiative focused on electrified, high-efficiency recycling technologies capable of upgrading low-quality waste into premium raw materials.

Industry observers note that integrated models combining technology transfer, local expertise and blended finance could serve as a template for scaling circular plastics infrastructure across Southeast Asia.

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