Blue loans are financing instruments that aim to safeguard access to clean water, protect underwater environments, and invest in a sustainable water economy
The Asian Development Bank (ADB) signed a $44.2 million blue loan with PT ALBA Tridi Plastics Recycling Indonesia, an ALBA Group Asia company, to establish a polyethene terephthalate (PET) recycling facility in Central Java.
ADB and Leading Asia’s Private Infrastructure Fund (LEAP) will each provide $22.1 million in funding for the project. Blue loans are financing instruments that aim to safeguard access to clean water, protect underwater environments, and invest in a sustainable water economy.
“Plastic pollution causes billions of dollars in irreversible harm to our marine ecosystem, and also have severe impacts on economies and public health,” said Ashok Lavasa, ADB Vice-President for Private Sector Operations and Public–Private Partnerships. “This project showcases the potential for PET recycling in Indonesia, while the certified blue loan aims to attract more investors into waste management and recycling.”
Each year, approximately 8 to 12 million tons of plastic end up in the ocean. Indonesia is one of the top contributors to marine plastic pollution. Its government has implemented policy initiatives targeting a 70 per cent reduction in plastic waste leakage by 2025 and achieving near-zero plastic pollution by 2040.
The recycling plant will process PET beverage bottles into high-quality recycled polyethene terephthalate (rPET) flakes and food-grade rPET pellets, which can be used to produce new rPET bottles. The plant is expected to recycle up to 48,000 tons of PET bottles annually, diverting them from landfills, open burning, or leakage into the ocean. The plant will produce 36,000 tons of rPET, which will offset up to 30,500 tons of carbon dioxide that would have resulted from using virgin PET.
“It has been a pleasure working with ADB on this landmark project for Central Java,” said Axel Schweitzer, ALBA Group Asia Limited Chairman. “Our project will increase food-grade rPET production capacity in Indonesia and contribute to the creation of a circular economy for plastics. We are excited to do more projects like this in Indonesia and the wider Southeast Asia region, and look forward to partnering with ADB to explore future opportunities.”
