JAKARTA - Circulate Capital, a leading investment management company in a circular economy for developing countries, officially announced its two newest strategic investments in Indonesia.
This investment targets two local plastic recycling actors, namely Pelita Mekar Semesta (PMS) and Polindo Utama, as part of efforts to strengthen the national recycling supply chain as well as answer the challenges of plastic pollution.
This step marks Circulate Capital's long-term commitment to building circular economic solutions that not only impact the environment, but also support business growth in emerging markets such as Indonesia.
"Indonesia is one of the countries with the biggest opportunities to improve global circular economic solutions," said Associate Investment Partner of Southeast Asia as well as Head of Indonesia Circulate Capital Dondi Hananto in his statement, Friday, July 4.
Pelita Mekar Semesta (PMS) has been operating for more than 15 years in East Java, focusing on recycling the type of poliolefin plastic commonly used for packaging and bags.
Investment from Circlate Capital will triple PMS production capacity for blow-film products, increase production of high-quality recycling pellets and support plastic waste collection and sorting centers in a number of cities.
Products produced include recycled pellets to finished goods such as agricultural plastic and trash bags.
Meanwhile, Polindo Utama is a plastic PET recycling company with more than two decades of experience. PET is a type of plastic commonly used in drink bottles.
Polindo itself has run the recycling process from upstream to downstream, starting from collecting post-consumption bottles, washing to producing pieces and food-grade pellets. Currently, Polindo has managed to recycle more than 2.8 billion plastic bottles every year.
With additional investment, Polindo will expand its capacity and start processing other types of plastic to meet market demand for quality recycled materials.
Cumulatively by 2030, the two companies are expected to recycle 320,000 tons of plastic waste and add more than 30,000 tons of recycling capacity.
In addition, this investment is projected to improve welfare to 10,000 waste sector workers in Indonesia.
Indonesia is known to produce around 6.8 million tons of plastic waste every year, with more than 70 percent at risk of polluting the environment.
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Even so, the local recycling ecosystem is considered quite active and has great potential to grow, especially with supporting policies and increasing consumer awareness.
Circlate Capital has invested in a total of 23 companies in Asia and Latin America, focusing on reducing plastic waste, mitigating climate change and building tough supply chains.
To date, their investment portfolio has increased its recycling capacity by 455,000 tons per year, preventing carbon emissions by 627.000 tons of CO2e and increasing the standard of living for more than 6,600 workers.
The latest investment in PMS and Polindo is part of Circulate Capital's strategy to strengthen proven effective and ready-to-extend recycling solutions.
Through a combination of capital, technical support and market connections, the company targets Indonesia as a strategic market on the global circular economy agenda.
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