JAKARTADAILY.ID – PT ALBA Tridi Plastics Recycling Indonesia, a subsidiary of ALBA Group Asia, has secured a $44.2 million loan from the Asian Development Bank (ADB) to construct a polyethylene terephthalate (PET) recycling facility in Central Java.
The loan falls under the category of certified 'blue loans', which are financing instruments designed to safeguard access to clean water, protect underwater environments, and invest in a sustainable aquatic economy.
Ashok Lavasa, ADB Vice President for Private Sector Operations and Public Private Partnerships, stated in a written statement sent to JakartaDaily.id, "Plastic pollution is causing irreversible damage worth billions of dollars to our marine ecosystems and is having a devastating impact on the economy and public health. This project will showcase the potential of PET recycling in Indonesia, while the certified blue loans aim to attract more investors to the waste management and recycling sector."
ADB and Leading Asia's Private Infrastructure Fund (LEAP) will contribute $22.1 million each to the project.
Citing government data, ADB highlights that approximately 8 to 12 million tons of plastic end up in the oceans each year, with Indonesia being one of the largest contributors to marine plastic pollution.
The Indonesian government has introduced policy initiatives with the aim of reducing plastic waste leakage by 70 percent by 2025 and achieving near-zero plastic pollution by 2040.
The recycling facility will transform PET beverage bottles into high-quality recycled polyethylene terephthalate (rPET) flakes and food-grade rPET pellets, which can be used to manufacture new rPET bottles.
It is projected that the plant will recycle up to 48,000 tons of PET bottles annually, preventing them from accumulating in landfills, being openly burned, or leaking into the ocean.
The plant's production of 36,000 tonnes of rPET will help reduce carbon dioxide emissions by up to 30,500 tonnes compared to the use of new PET.
Axel Schweitzer, Chairman of ALBA Group Asia Limited, expressed, "We are pleased to collaborate with ADB on this significant project for Central Java. Our project will increase the production capacity of food-grade rPET in Indonesia and contribute to the establishment of a circular economy for plastics. We are excited to undertake more projects like this in Indonesia and the broader Southeast Asia region and look forward to exploring future opportunities in partnership with ADB."
This certified blue loan aligns with ADB's Ocean Finance Framework, which sets investment criteria based on the Action Plan for Healthy Oceans and Sustainable Blue Economies.
LEAP, managed by ADB, has a capital fund of $1.5 billion provided by the Japan International Cooperation Agency (JICA).
Established in 2016, LEAP focuses on delivering high-quality, sustainable private sector infrastructure projects that reduce carbon emissions, enhance energy efficiency, and provide easily accessible and affordable healthcare, education, and communication services to ADB member countries.