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IVL to build new PET recycling plant in West Java

Investment supports Indonesia’s plan to cut its waste by 70% by 2025.

6th July 2021

Innovation in Textiles
 |  Karawang, West Java, Indonesia


Thailand-headquartered Indorama Ventures (IVL) is to build a facility in Karawang, West Java, to recycle almost two billion plastic bottles a year in support of the Indonesian government’s plan to reduce ocean debris.

The recycling plant will provide the washed and shredded post-consumer bottles as PET flake feedstock to produce recycled resin that is suitable for food contact use, as well as synthetic fibres. It is planned to launch in 2023 and will create 217 new jobs.

“I appreciate the initiative of Indorama Ventures to help the government to end and mitigate the plastic waste crisis through its investment in this greenfield recycling facility,” said Bahlil Lahadalia, Indonesia’s Minister of Investment. “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. Together we must safeguard the richness of our marine biodiversity for our children and grandchildren.”

As the largest archipelagic state in the world, Indonesia is endowed with great biodiversity and rich natural resources and by the end of 2025 its government is planning to reduce 70% of the plastic debris compared to a 2017 benchmark.

“The unique PET plastic used in soft drinks and water bottles is 100% recyclable and must never end up in our oceans,” said Yashovardhan Lohia, chief sustainability officer at Indorama Ventures. 

Indorama Ventures has six Indonesian sites across Purwakarta, Cilegon, Tangerang and Karawang. In 2019 the company announced plans to recycle a minimum of 750,000 metric tons of PET globally by 2025, investing up to US$1.5 billion to achieve this goal.

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