ALBA Group, the German-based world-leading recycling and environmental services company as well as raw material provider, has started the construction of its US$60 million waste processing facility in Kendal Industrial Park (KIP), Central Java.
Chairman and Owner of ALBA Group Asia, Mr. Axel Schweitzer, said the investment was made to support Indonesia鈥檚 goal of reducing plastic leakage to the ocean by 70% by 2025 and then further on to near-zero percent by 2040.
鈥淥ur project will increase food-grade rPET [Recycled Polyethylene Terephthalate] production capacity in Indonesia and contribute to the creation of a circular economy for plastics,鈥� Mr. Schweitzer said at the groundbreaking event for the plant in KIP on Tuesday, June 6, 2023.
Over 8 million tons of plastic waste end up in the ocean every year, out of which Indonesia is a global top contributor with an estimated 600,000 tons, according to the Indonesian Institute of Sciences.
For the construction of the waste-processing plant, ALBA Group Asia has partnered with Tridi Oasis Group, a recycling company based in Tangerang, Banten, just west of Indonesia鈥檚 capital city of Jakarta.
Under the company name PT Alba Tridi Plastics Recycling Indonesia, the plant is set to be equipped with state-of-the-art facilities with a capacity to process 48,000 tons of polyethylene terephthalate (PET) bottles per year and produce 36,000 tons of food-grade rPET pellets annually. The technology will be leveraged by ALBA鈥檚 Interzero brand.
Dian Kurniawati, Director of PT Alba Tridi Plastics Recycling Indonesia and Founder of PT Tridi Oasis Group, said the facility was targeted for operations in 2025.
鈥淭his factory is not only how you can have economic growth, but also how you can solve social problems. We hope to gain more knowledge on how to handle the waste problem in Kendal,鈥� said Ms. Kurniawati.
The Asian Development Bank (ADB) and the Leading Asia鈥檚 Private Infrastructure Fund (LEAP) provided the $44.2 million 鈥渂lue loan鈥� for the construction of the factory. Blue loans are financing instruments that aim to safeguard access to clean water and protect underwater environments.
Also in attendance at the event were Kendal Regent Dico M. Ganinduto, Assistant for Economics & Development at the Central Java Provincial Government Dr. Sujarwanto Dwiatmoko, Regional Director III Unit Deputy of Investment Control and Implementation Sri Moertiningrum, and Director of Private Sector Operations at Asian Development Bank Jackie Surtani.