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February 10, 2026
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Corporate Circular Economy Sustainability

Leading the way: Borealis and partners are exploring mechanical recycling of polyolefins in Indonesia

Feasibility study drives integrated circular waste management ecosystem in East Java

A Borealis Blog Article

Photo: Shredded plastic waste

© Borealis

Indonesia is facing significant challenges in managing its growing waste volume. High population, urbanization, and limited infrastructure have resulted in much of the country’s waste being inadequately collected, sorted, or processed. As a result, large quantities of waste are dumped or burned, leading to environmental pollution and health risks for communities. Improving waste management systems and circular economy is therefore essential for Indonesia to move towards a more sustainable and livable future.

To support Indonesia’s ambitious waste management and recycling targets, we have initiated a joint project together with local and global partners to drive forward the implementation of integrated waste management systems and recycling.

Each partner will contribute valuable expertise and resources to this new partnership which aims to create Indonesia’s first fully integrated circular waste management ecosystem, focusing on transforming plastic waste into valuable recycled materials.

Initiating change – together!

  • The collaboration starts with a feasibility study to explore the construction of a new polyolefin recycling facility in East Java. This part of the project is financed by Catalytic Finance Foundation as part of the Subnational Climate Fund.
  • The feasibility study will look at the entire process: from sorting of incoming mixed polyolefin waste to recycling and producing high-quality recycled polyolefins.
  • The Indonesian partners, Pelita Mekar Semesta (plastic recycling) and Reciki Solusi Indonesia (waste management), bring deep expertise in waste management and recycling, ensuring solutions are tailored to Indonesia’s needs.
  • Together with Borouge, we will contribute with our technological expertise and know-how to help produce recycled plastics suitable for a wide range of applications.

Why does this matter for us?

This initiative supports our vision of accelerating the shift to a circular economy for plastics, particularly in regions where waste management is a challenge. By working closely with Project STOP – an initiative co-founded by Borealis and Systemiq that partners with local communities to design and implement circular waste systems – the project aims to reduce plastic pollution, prevent waste from entering the environment, and support local economic development.

“Our partnership is paving the way for a new model of waste management and recycling in Indonesia. By combining our expertise, we are taking concrete steps towards a circular economy for plastics and making a real impact on reducing waste pollution. This initiative is about more than just recycling. It’s about creating lasting value from materials that would otherwise be discarded, and ensuring that our actions today contribute to a healthier environment for the generations to come,” says Stefan Doboczky, CEO of Borealis.

Photo: Sorted plastic waste

Photo: Sorted plastic waste

© Project STOP

Photo: Packed recycled pellets

Photo: Packed recycled pellets

© Borealis

The feasibility study marks the beginning of an exciting journey. Together with our partners, we are committed to jointly building a circular waste management model in Indonesia that transforms plastic waste into a valuable resource while protecting the environment, and creating new opportunities for local communities.

This blog post is also available in German language.
Read the media release here.