Plastic Waste to Circular Value: Borealis and Borouge Launch Major Recycling Ecosystem in Indonesia
Published: 19 Feb 2026
Author: Precedence Research
A new partnership between Borealis and Borouge to create a fully integrated circular waste management ecosystem in Indonesia is a major step in addressing the problems associated with plastic waste. To increase recycling rates and lessen environmental leakage, the initiative focuses on enhancing the collection, sorting, and processing of plastic waste. The companies hope to show how industry-led partnerships can support long-term sustainability solutions in quickly developing regions by creating a structured system that links waste management with advanced recycling capabilities.
This project will be implemented in East Java, where the partners will first conduct a detailed feasibility study. Before implementing the project in East Java, the partners will carry out a thorough feasibility study. This study will assess the economic, environmental, and technical aspects of developing an integrated plastic waste value chain. The goal is to transform mixed plastic waste into premium recycled polyolefins that can be added back into the manufacturing process. The initiative aims to reduce reliance on virgin plastics and improve the local recycling infrastructure by guaranteeing that recycled materials fulfill industry standards.
Local waste management experts Pelita Mekar Semesta and Reciki Soolusi Indonesia are working with Borealis and Borouge to support this endeavor. For the first phase, the Subnational Climate Fund is providing financial and technical support. The partners joint goal is to create a replicable and scalable model that can effectively manage plastic waste streams while promoting environmental protection objectives. In this partnership, strong local operational knowledge in waste collection and processing is combined with worldwide expertise in advanced polyolefin solutions.
According to the announcement, this initiative reflects a shared commitment to advancing the circular economy by keeping plastic materials in use for as long as possible. The partners hope to establish a more organized and efficient strategy for dealing with plastic waste in Indonesia by combining waste management systems with recycling technology and funding sources. If the ecosystem is successful, it may serve as a model for comparable initiatives in other areas, highlighting the value of cross-sector cooperation in tackling the world's plastic waste problems and hastening the shift to more environmentally friendly materials management techniques.
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