Extending the life span of plastics by recycling them for further use will help reduce plastic waste, thereby reducing the potential for plastic waste leakage into oceans. A cofinanced private sector project in Indonesia will establish a recycling facility that will offset up to 30,500 tons of carbon dioxide used otherwise with virgin plastics.
Each year, 8–12 million tons of plastic end up in the ocean, and Indonesia is one of the top global contributors to marine plastic pollution.
The government is targeting a 70% reduction in plastic waste leakage by 2025 under the National Action Plan for Handling Marine Debris 2018-2025. Government policy initiatives to support this goal include the production of biodegradable plastics, the reuse of plastic waste, and progress towards a national ban on single use plastics by 2030. Furthermore, ocean-based efforts include reception facilities at ports, the collection of waste from marine and coastal areas, and plastic waste management in tourism.
ADB signed a $22.1 million blue loan with PT ALBA Tridi Plastics Recycling Indonesia, an ALBA Group Asia company, to establish a polyethylene terephthalate (PET) recycling facility in Central Java. The Leading Asia’s Private Infrastructure Fund cofinanced the project. Blue loans are financing instruments that aim to safeguard access to clean water, protect underwater environments, and invest in a sustainable water economy.
The recycling plant will process PET beverage bottles into high-quality recycled PET (rPET) flakes and food-grade rPET pellets, which can produce new rPET bottles. The plant is expected to recycle up to 48,000 tons of PET bottles annually, diverting them from landfills, open burning, or leaking into the ocean. The plant will produce 36,000 tons of rPET, offsetting up to 30,500 tons of carbon dioxide that would have resulted from using virgin PET.
“Plastic pollution causes billions of dollars in irreversible harm to our marine ecosystem and also has severe impacts on economies and public health,” said Bhargav Dasgupta, ADB vice-president for market solutions. “ADB’s project with ALBA showcases the potential for PET recycling in Indonesia, while the certified blue loan aims to attract more investors and showcase the ways we can finance projects that help our environment, and invest in a sustainable water economy.”
"ADB's project with ALBA showcases the potential for PET recycling in Indonesia, while the certified blue loan aims to attract more investors and showcase the ways we can finance projects that help our environment, and invest in a sustainable water economy."
~ Bhargav Dasgupta, ADB vice-president for market solutions
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