Circulate Capital invests in two Indonesian recyclers to expand polyolefin and PET recycling, supporting circular economy growth across Southeast Asia.
Circulate Capital, a Singapore-based investment management firm focused on advancing the circular economy, has made strategic investments in two Indonesian plastic recycling companies: Pelita Mekar Semesta (PMS) and Polindo Utama (Polindo). Though the investment amount remains undisclosed, the funding is expected to significantly enhance the operations and capacities of both companies, supporting Indonesia’s growing demand for sustainable plastic management solutions.
Pelita Mekar Semesta, located in East Java, operates as a fully integrated polyolefin recycler and film manufacturer. The company supplies both domestic and international markets with recycled plastic products. Circulate Capital’s funding will enable PMS to triple its blow-film production capacity, thereby increasing its ability to meet market demands for recycled film products. Additionally, the investment will be directed toward expanding the company’s collection and sorting network in several cities across Indonesia, strengthening the entire recycling value chain.
Polindo Utama, based near Jakarta, is a veteran PET recycling company with more than two decades of experience. The firm handles the full recycling process from collecting used bottles to producing high-quality PET pellets. Each year, Polindo recycles more than 2.8 billion plastic bottles, converting them into sustainable materials for reuse. Circulate Capital’s investment will help Polindo scale up its operations further, not only by boosting its existing PET recycling capacity but also by enabling the company to begin processing additional types of plastic materials. This will help Polindo respond to increasing demand for diverse recycled plastic outputs, supporting local and global sustainability targets.
These recent investments in PMS and Polindo bring Circulate Capital’s total number of recycling-focused investments in Southeast Asia to four. The company had previously announced two investments in Brazilian PET recyclers in September of the prior year and also backed a Colombian recycling firm earlier in 2024. This ongoing expansion highlights Circulate Capital’s commitment to building scalable and impactful recycling infrastructure across key emerging markets.
Founded in 2018, Circulate Capital aims to invest in high-growth companies that help prevent plastic waste from polluting oceans and landfills. The firm manages the Circulate Capital Ocean Fund, which targets solutions across South and Southeast Asia and Latin America. The fund is supported by several influential development finance institutions including the European Investment Bank, the International Finance Corporation (IFC), and Proparco. Its corporate partners include leading global brands such as PepsiCo, Procter & Gamble, Unilever, Danone, Dow, Chanel, The Coca-Cola Company, Chevron Phillips Chemical Company, and Mondelez International. With a collaborative approach, Circulate Capital seeks to accelerate the transition to a more sustainable, circular plastics economy.
