Press Releases July 3, 2025
Two new investments to advance scalable recycling solutions in Indonesia’s circular economy and support the growing demand for recycled plastic.
Singapore – July 03, 2025 – Circulate Capital, a leading circular economy investment management firm in high-growth markets, today announced two new investments in Indonesia: Pelita Mekar Semesta (PMS) and Polindo Utama (Polindo). These new commitments mark a strategic step forward in Circulate Capital’s efforts to scale proven solutions and strengthen supply chains where the need and opportunity are greatest.
As demand for recycled content intensifies and policy momentum accelerates across Asia, Circulate Capital continues to invest in companies already operating on the front lines of the circular economy. These investments reflect the firm’s long-term commitment to the region and its belief that high-growth markets like Indonesia offer not just environmental and climate impact but a clear pathway to scale and returns.
“Indonesia represents one of the most dynamic opportunities to scale circular economy solutions globally,” said Dondi Hananto, Associate Investment Partner Southeast Asia & Head of Indonesia, Circulate Capital. “With the right mix of growth capital, technical support, and market access, companies like PMS and Polindo can become national and regional champions in closing the loop on plastic waste.”
Scaling proven solutions
Pelita Mekar Semesta (PMS) is a fully integrated plastic recycler with over 15 years of experience, operating in East Java. Serving both domestic and international markets, the company specializes in polyolefins – plastics commonly used in everyday packaging and bags. Circulate Capital’s investment will triple PMS’s blow-film capacity, boost the production of high-quality recycled pellets, and support the development of new collection and sorting infrastructure across multiple cities. PMS’s product range includes recycled pellets and finished goods such as garbage and agricultural bags.
Polindo Utama (Polindo) is a PET recycler with more than 20 years of experience and fully integrated operations across collection, washing, flake production, and pelletizing. PET, the plastic commonly used in water and soda bottles, is in high demand for food-grade recycling. Polindo’s operations focus on post-consumer plastic waste, ensuring materials are recovered directly from end users. Each year, the company collects and recycles over 2.8 billion plastic bottles, giving them a second life as high-quality recycled content. With Circulate Capital’s investment, Polindo will expand its PET recycling capacity and begin processing additional plastic types to meet growing corporate demand for traceable, high-quality recycled materials.
At scale, the two companies are projected to circulate 320,000 tonnes of plastic waste cumulatively by 2030, as well as add more than 30,000 tonnes of new recycling capacity, and improve the livelihoods of 10,000 workers across the value chain.
A strategic growth market
Indonesia generates an estimated 6.8 million tons of plastic waste annually, over 70% of which is at risk of leaking into the environment. Yet, it also hosts one of the most dynamic ecosystems of local recyclers in the region, supported by a fast-growing wave of policy reforms and consumer demand that is accelerating the shift toward circularity.
“These investments are crucial for building Indonesia’s circular economy,” said Karyanto Wibowo, Senior Director Public Affairs & Sustainability, Danone Indonesia. “By partnering with Circulate Capital and supporting local recyclers, we’re strengthening the infrastructure needed to scale with Indonesia’s growth. We’re not just addressing today’s waste challenges – we’re building tomorrow’s solutions. This demonstrates Danone AQUA’s unwavering commitment to delivering a tangible, positive impact for Indonesia’s environment and economy.”
Nurdiana Darus, Head of Sustainability and Corporate Affairs, Unilever Indonesia stated “Recyclers play a vital role in tackling waste management challenges and advancing the circular economy in Indonesia. This investment supports the development of inclusive recycling infrastructure in Indonesia, as we work towards our shared ambition of ending plastic pollution – through reduction, circulation, and collaboration. By working with the entire value chain and building shared recycling capabilities and systems, we can achieve the economies of scale needed to ensure plastic continues to serve its purpose and out of the environment, while also improving access to recycled materials“.
Circulate Capital has now backed 23 companies across Asia and Latin America, channeling capital to scale solutions that reduce plastic pollution, drive climate impact, and build resilient, future-fit supply chains. Prior to these two new investments, the firm’s portfolio had already added 455,000 tons per annum of new recycling capacity, avoided 627,000 tons of CO₂ emissions, and improved the livelihoods of more than 6,600 workers across the value chain.
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Additional Quotes
Mr. Willyam Wiranda, CEO, PT. Pelita Mekar Semesta: “This investment marks a significant milestone in our journey toward realizing our vision of becoming a world-class recycler. It will enable us to accelerate our growth plans, expand our market reach, enhance our research and development efforts, and further solidify our position as a leader in the polyolefin plastic recycling industry. With a shared commitment to excellence, innovation, and customer satisfaction, we aim to create even more value from plastic waste and deliver high-quality recycled products that define the circular economy at its best.”
Mr. Daniel Lawrence, CEO, PT. Polindo Utama: “Circulate Capital’s investment enables Polindo to significantly increase our production capacity and expand the types of plastics we can process. It is a critical step in strengthening our position as a leader in the recycling industry, while also meeting market demand for more sustainable recycling solutions.”
Nothing contained in this Press Release is intended to project, predict, guarantee, or forecast the future performance of any investment. This Press Release is for information purposes only and is not investment advice or an offer to buy or sell any securities or to invest in any funds or other investment vehicles managed by Circulate Capital.
