PT ALBA Tridi Plastics Recycling secures US$44.2M to build new PET recycling facility

INDONESIA – PT ALBA Tridi Plastics Recycling Indonesia, an ALBA Group Asia company, has signed a US$44.2 million blue loan deal with Asian Development Bank (ADB) to build a new PET recycling facility.

As per the terms of this agreement, the multilateral development bank will provide US$22.1 million, while the other half will be covered by its intermediary, Leading Asia’s Private Infrastructure Fund (LEAP), according to a press statement.

Managed by ADB, the LEAP fund was established in 2016. It is capitalized with a US$1.5 billion commitment by the Japan International Cooperation Agency.

The LEAP fund aims to support high-quality and sustainable private sector infrastructure projects to minimize carbon emissions, enhance energy efficiency and provide access to education, healthcare and communication services for various developing member nations of ADB.

Blue loans are financing instruments to protect access to clean water, protect underwater environments, and invest in a sustainable water economy.

The ADB’s vice president for Private Sector Operations and Public-Private Partnerships Ashok Lavasa said: “Plastic pollution causes billions of dollars in irreversible harm to our marine ecosystem, and also has severe impacts on economies and public health.

“This project showcases the potential for PET recycling in Indonesia, while the certified blue loan aims to attract more investors into waste management and recycling.”

The recycling plant will process PET beverage bottles into high-quality recycled polyethylene terephthalate (rPET) flakes and food-grade rPET pellets, which can be used to produce new rPET bottles.

The plant is expected to recycle up to 48,000 tonnes of PET bottles annually, diverting them from landfills, open burning, or leakage into the ocean.

The plant will produce 36,000 tonnes of rPET, which will offset up to 30,500 tonnes of carbon dioxide that would have resulted from using virgin PET.

ALBA Group Asia Limited Chairman Axel Schweitzer added: “It has been a pleasure working with ADB on this landmark project for Central Java.

“Our project will increase food-grade rPET production capacity in Indonesia and contribute to the creation of a circular economy for plastics.

“We are excited to do more projects like this in Indonesia and the wider Southeast Asia region and look forward to partnering with ADB to explore future opportunities.”

The initiative comes at a time when Indonesia is one of the top contributors to marine plastic pollution.

Its government has implemented policy initiatives targeting a 70% reduction in plastic waste leakage by 2025 and achieving near-zero plastic pollution by 2040.

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