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ADB signs off on $44.2m loan for Indonesian plastic recycling plant
The Asian Development Bank (ADB) has signed a deal for a US$44.2 million blue loan for PT ALBA Tridi Plastics Recycling Indonesia, the Indonesian subsidiary of ALBA Group Asia, to establish a polyethylene terephthalate (PET) recycling facility in Central Java.
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War on plastic: Volunteers collect plastic waste during a beach cleanup at Kuta Beach in Badung regency, Bali, on April 13. Indonesia is a major producer of plastic waste. (Antara/Fikri Yusuf)
T
he Asian Development Bank (ADB) has signed a deal for a US$44.2 million loan for PT ALBA Tridi Plastics Recycling Indonesia, the Indonesian subsidiary of ALBA Group Asia, to establish a polyethylene terephthalate (PET) recycling facility in Central Java.
The multilateral development bank will provide $22.1 million, while the other half will be covered by its intermediary, Leading Asia's Private Infrastructure Fund (LEAP), according to a press statement released on Tuesday.
"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," said ADB vice president for private sector operations and public–private partnerships Ashok Lavasa in the statement.
Approximately 8 million to 12 million tonnes of plastic end up in the ocean, and Indonesia is one of the top contributors to marine plastic pollution, according to the statement.
The government has implemented policy initiatives under Presidential Regulation No. 97/2017 on household waste management to reduce plastic waste leakage by 70 percent by 2025.
Despite various initiatives put in place since 2018, up until 2021, the reduction stood at a mere 28.5 percent, according to a report from CNN Indonesia, which is a far cry from the government’s goal of near-zero plastic pollution by 2040.
Read also: Government to phase out single-use plastics by 2029
