Technological watch

Indorama to build new PET recycling facility in Indonesia

Thailand-based Indorama Ventures Public Company Ltd. (IVL), has announced plans to construct a new PET recycling facility in Karawang, West Java, a province of Indonesia.

PET is the most collected and recycled plastic packaging in the world. According to IVL, a leading global producer of recycled PET for beverage bottles, the new facility will recycle 1.92 billion PET plastic bottles annually and create 217 new jobs, as well as bringing indirect employment to the area.

The plant, scheduled to launch in 2023m will wash and shred bottles into PET flake feedstock that is then further processed into food-grade recycled PET.

The new facility will serve to support the government of Indonesia’s National Plan of Action on Marine Plastic Debris, announced in 2017 and aimed at reducing the country’s ocean plastic levels by 70 percent by 2025. Indonesia is the largest archipelago state in the world, with extensive ecosystems of coral reef, mangrove, and seagrass. Marine plastic debris has become a major threat to the country’s marine and coastal biodiversity.

Bahlil Lahadalia, minister of investment of the Republic of Indonesia, praised the initiative of Indorama Ventures "to help the government to end and mitigate the plastic waste crisis through their investment in this greenfield recycling facility."

“It is time for the government, and all of us, to take action and address the waste problem. We invite more investors who are committed to social impacts for the community and environment,” he said.

PET should never end up in the oceans, emphasized Yashovardhan Lohia, chief sustainability officer at Indorama Ventures.

“Today’s announcement is possible because of Indonesia’s ambitious national plan to reduce marine plastic debris by 70 percent, reduce solid waste by 30 percent, and handle 70 percent of solid waste by 2025,” he said.

Indorama Ventures has six Indonesian sites across Purwakarta, Cilegon, Tangerang and Karawang. This new plant in Karawang, along with its other recycling facilities in Southeast Asia, will work with existing PET flake production facilities in Indonesia.

Indorama Ventures currently  operates recycling facilities in Mexico, USA, Brazil, Ireland, France, the Netherlands, Poland, Thailand and from 2021 in the Philippines. In 2019 Indorama Ventures announced it aim of recycling a minimum of 750,000 metric tons of PET globally by 2025, investing up to $1.5 billion to achieve this goal.

Publication date: 07/07/2021

Plastics News - packaging


This project has received funding from the Bio Based Industries Joint Undertaking under the European Union’s Horizon 2020 research and innovation programme under grant agreement No 837761.