ADB Inks US$44.2 Million Blue Loan Deal to Reduce Ocean Plastic Waste in Indonesia

The Asian Development Bank (ADB) signed a US$44.2 million blue loan with PT Alba Tridi Plastics Recycling Indonesia, an Alba Group Asia company, to establish a polyethylene terephthalate (PET) recycling facility in Central Java.

ADB and Leading Asia’s Private Infrastructure Fund (LEAP) will each provide US$22.1 million in funding for the project.

Each year, approximately 8 to 12 million tons of plastic ends up in the ocean. Indonesia is one of the top contributors to marine plastic pollution. Its government has implemented policy initiatives targeting a 70% reduction in plastic waste leakage by 2025 and achieving near-zero plastic pollution by 2040.

Blue loans are financing instruments that aim to safeguard access to clean water, protect underwater environments, and invest in a sustainable water economy.

The proposed recycling plant will process PET beverage bottles into high-quality recycled polyethylene 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 Alba Group Asia Chairman Axel Schweitzer. “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.”

The certified blue loan adheres to ADB’s Ocean Finance Framework and the defined criteria for investments under its Action Plan for Healthy Oceans and Sustainable Blue Economies.