By: ICN Bureau
Last updated : February 11, 2026 9:31 am
Borouge and Borealis will be supported by Catalytic Finance Foundation in executing a feasibility study as part of the Subnational Climate Fund Technical Assistance programme
Borouge and Borealis, in collaboration with Catalytic Finance Foundation, Pelita Mekar Semesta (PMS) and Reciki Solusi Indonesia, are joining forces in order to establish Indonesia’s first fully integrated circular waste management ecosystem.
As part of a strategic commitment to driving a circular plastics economy in Indonesia, Borouge and Borealis are leveraging their expertise in sustainable polyolefins through targeted partnerships and waste reduction initiatives. This initiative highlights their collaborative efforts to advance recycling and structural, long-term waste management solutions.
The partnership begins with a feasibility study, funded by the Subnational Climate Fund Technical Assistance, aimed at creating a fully integrated circular waste management and polyolefin recycling system in Indonesia. This study will focus on using industry-leading technology to convert plastic waste into premium recycled polyolefin feedstocks.
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.”
Managed by Pegasus Capital Advisors, the Subnational Climate Fund (SCF) develops sustainable infrastructure and agriculture through a blended finance model. With a Technical Assistance facility run by the International Union for Conservation of Nature (IUCN), Gold Standard, and Catalytic Finance Foundation, the project aims to transform Indonesia’s plastic waste into a bankable, climate-positive, and nature-positive circular economy, delivering significant social and environmental co-benefits.
PMS and Reciki, leaders in waste management and recycling in Indonesia, bring invaluable local expertise to the partnership. Their knowledge of the Indonesian context complements Borouge and Borealis’ advanced technology capabilities, enabling the production of high-quality recycled polyolefins suitable for diverse market applications.
Willyam Wiranda, CEO Pelita Mekar Semesta said: “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 PMS, as one of the leading plastic recyclers, to intensify efforts in preventing waste from entering the environment. Together with our partners we aim to present a tangible role model for the ecosystem in Indonesia.”
Bhima Aries Diyanto, Founder and CEO Reciki Solusi Indonesia said: "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. We are grateful to all our partners for their dedication in making this possible."
Additionally, the partnership will align 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.