Waste Not: Indonesia’s Rekosistem Raises $5M to Build a Circular Economy

Aiming to transform over 70% of waste into recycled and renewable resources; Rekosistem secures a $5 million investment for sustainable waste management expansion.
JAKARTA — As the world grapples with the mounting waste crisis and its adverse impact on the climate, Rekosistem, an enterprising climate-tech startup from Indonesia, is pushing boundaries. On Wednesday, it announced a significant $5 million investment led by Skystar Capital, with contributions from East Ventures, Provident, and a host of others, marking a major stride in its quest to scale sustainable waste management.


Rekosistem : 

Launched a mere two years ago, in 2021, the startup is riding on the tailwinds of technological innovation. Utilizing the Internet of Things (IoT) and Machine Learning, Rekosistem not only increases the efficiency of waste collection by an impressive 49%, but it also spearheads the drive towards a more circular economy. Their vision? Turning a significant chunk of the waste, particularly over 70%, into recycled materials and renewable resources.
The investment will bolster the company’s capacity to manage over 20,000 Metric Tons of waste every month, a figure they hope to achieve within the next two years. It’s a multifaceted strategy; developing a waste management system, fortifying recycling technology, amplifying their material recovery facilities (namely Reko Waste Station and Reko Hub), and extending their waste management reach to more cities. Additionally, the startup is amplifying its digital ecosystem, aiming to onboard over 5,000 workers and business partners.
“At Rekosistem, we are determined to build a business adept to face the three biggest challenges facing businesses in the current generation which are the 3Ps, namely profit, people, and planet. Through circular economy implementation in the existing waste supply chain, our products and services aim to make responsible production and consumption accessible to everyone,” says Ernest Layman, the charismatic CEO and Co-Founder of Rekosistem. Their dedication to sustainable practices shines through their products and services, which make responsible production and consumption accessible to all.
Rekosistem’s digital platform reaches both businesses and consumers, providing a comprehensive solution for waste management for residences, buildings, and local governments. ““In addressing the waste problem in Indonesia, the B2B business model is the appropriate approach because the waste supply chain issue in Indonesia is systematic in nature. This business model allows us to transform the currently fragmented waste supply chain into a more circular ecosystem in the most efficient and optimal way, together with all our business partners” adds Joshua Valentino, the company’s COO.
The startup’s ambitious blueprint has garnered the attention and support of key industry players. Abraham Hidayat of Skystar Capital is particularly sanguine about Rekosistem’s future, lauding their deep sector expertise. Similarly, Avina Sugiarto of East Ventures heaps praise on the startup for their robust environmental, social, and governance (ESG) values.
Rekosistem’s rapid evolution is striking. In the first half of this year alone, they’ve experienced a 523% spike in waste productivity for recycling, upcycling, and waste-to-energy. Moreover, they’ve enhanced waste workers’ incomes by 117%, reflecting the company’s dedication to societal welfare.
Currently, with over 300 waste workers and partners, 10 Reko Hubs, and 33 Reko Waste Stations, the company serves over 100 business customers and 20,000 households, catering to more than 100,000 individuals and managing 2,500+ Metric Tons of waste monthly. With such stellar performance metrics, it’s no wonder the company has seen a seven-fold uptick in its annual revenue.
But perhaps the most commendable metric is the environmental impact. By championing recycled materials over new, Rekosistem has staved off a colossal 12,615 Metric Tons of CO2 emissions, underscoring their commitment to the environment and heralding a promising future for waste management in Indonesia.”

Rekosistem co-founders Joshua Valentino (left) and Ernest Layman. Lead image courtesy of Rekosistem Website