Borealis and partners are exploring mechanical recycling of polyolefins in Indonesia

Vienna, Austria – Borealis and its partners are launching a new initiative in Indonesia aimed at strengthening plastic waste recycling and advancing a circular economy for polyolefins, the company announced in a press release. The project brings together Borealis, Borouge, Indonesian recyclers Pelita Mekar Semesta and Reciki Solusi Indonesia, and the Subnational Climate Fund to explore building Indonesia’s first fully integrated circular waste management ecosystem in East Java, starting with a feasibility study on a potential mechanical recycling facility that could convert mixed polyolefin-rich plastic waste into high-quality recycled plastics.

The feasibility study, financed through the Subnational Climate Fund’s technical assistance program, will examine the full recycling value chain—from waste collection and sorting through to processing and production of recycled polyolefin resins suitable for industrial applications. Local partners bring expertise in waste management and recycling tailored to Indonesia’s needs, while Borealis and Borouge contribute technology know-how and material science experience to help develop recycled plastics that can meet quality and performance standards.

The collaboration supports broader industry goals of reducing plastic pollution, increasing the availability of recycled materials, and creating economic opportunities within local communities. It also aligns with Borealis’ strategic commitment to accelerate plastics circularity and build sustainable solutions across global markets, including regions facing significant waste management challenges.