Circulate Capital’s latest funding round, disclosed July 4, brings fresh capital to Pelita Mekar Semesta (PMS) and Polindo Utama, buoyed by Southeast Asia’s growing appetite for recycled plastics and governments’ circular-economy mandates.
As demand for recycled plastics surges and Southeast Asia accelerates its shift to a circular economy, Singapore-based Circulate Capital has pledged significant backing for two Indonesian recyclers. The firm announced investments in Pelita Mekar Semesta (PMS) and Polindo Utama, aiming to strengthen regional recycling supply chains and expand capacity amid rising policy support and market opportunity.
RELEVANT SUSTAINABLE GOALS
Strategic Investment to Boost Recycling Scale
Circulate Capital’s latest funding round, disclosed July 4, brings fresh capital to PMS and Polindo Utama, buoyed by Southeast Asia’s growing appetite for recycled plastics and governments’ circular-economy mandates. “Indonesia is one of the largest opportunities to scale global circular solutions,” said Dondi Hananto, Associate Investment Partner for Southeast Asia and Head of Indonesia at Circulate Capital. “With the right mix of capital, technical support and market access, companies like Polindo and PMS can become national and regional leaders in plastic waste solutions.”
As demand for recycled plastics surges and Southeast Asia accelerates its shift to a circular economy, Singapore-based Circulate Capital has pledged significant backing for two Indonesian recyclers. The firm announced investments in Pelita Mekar Semesta (PMS) and Polindo Utama, aiming to strengthen regional recycling supply chains and expand capacity amid rising policy support and market opportunity.
With more than two decades of experience, Polindo Utama engineers an integrated PET recycling process—from collection and washing to flake and pellet production. Each year, Polindo collects and recycles over 2.8 billion post-consumer bottles. The new funding will significantly boost its PET capacity and enable processing of additional plastic types to meet corporate demand for high-quality, traceable recycled materials, according to CEO Daniel Lawrence.
Combined, the two investments are projected to recycle 320,000 tons of plastic waste, add more than 30,000 tons of new capacity and improve livelihoods for approximately 10,000 workers across Indonesia’s waste sector by 2030. These targets build on Circulate Capital’s broader track record: its portfolio has already added 455,000 tons of annual recycling capacity, averted 627,000 tons of CO₂e emissions and enhanced the incomes of over 6,600 workers in Asia and Latin America.
Indonesia’s Imperative Market Dynamics
Indonesia generates around 6.8 million tons of plastic waste annually, with more than 70 percent at risk of environmental leakage. Yet a robust local recycling ecosystem—fueled by emerging policies and rising consumer demand—positions the archipelago as a strategic growth market. “This investment is vital for building Indonesia’s circular economy,” said Karyanto Wibowo, Director Senior Public Affairs & Sustainability at Danone Indonesia, a partner that supports local recyclers’ infrastructure needs.
Unilever Indonesia’s Head of Sustainability and Corporate Affairs, Nurdiana Darus, emphasized recyclers’ central role in combating plastic pollution. “This investment underpins the development of inclusive recycling infrastructure in Indonesia, aligning with our joint ambition to end plastic waste through reduction, circulation and collaboration,” she said.
By aligning funding, technical expertise and market channels, Circulate Capital aims to transform informal plastic collections into professionalized, traceable operations. The firm’s commitment to Indonesia reinforces its long-term belief that circular economy investments can deliver both environmental benefits and sustainable business growth—setting a template for emerging markets worldwide.
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