The Plastics Circular Investment Initiative (PCII), funded by the Korean Green New Deal Trust Fund (KGNDTF) of the Ministry of Finance and Economy (MOFE) of the Republic of Korea, supports Indonesia’s shift to a circular, sustainable plastics economy. Led by the Global Green Growth Institute (GGGI), the project focuses on two streams, namely recycled plastics and bioplastics, as the two key alternatives to fossil-based plastics considered by the Government of Indonesia.

PCII’s overarching goal is to catalyze investment into a circular plastics project that contributes to pollution reduction, climate mitigation, and green industrial development.

The initiative pursues four interlinked objectives:

– Strengthen the enabling environment for investment in recycled plastics and bioplastics

– Identify high-potential investment opportunities across priority plastic value chains

– Facilitate strategic partnerships between Indonesian and international companies, technology providers, and financiers

– Support investment readiness through targeted technical assistance for selected proposals

Indonesia is among the world’s largest producers of plastic waste, yet only a small share is effectively recycled. According to data from the Ministry of Environment, plastic waste accounted for up to 20% of Indonesia’s total waste (around 6.8 million tonnes) in 2024, yet only a limited share is effectively managed or recycled. Plastic leakage into terrestrial and marine ecosystems poses growing environmental, social, economic and health risks.

At the same time, global demand for recycled and alternative plastics is rising sharply, driven by new regulations, corporate commitments, and international negotiations on plastic pollution.

Major markets are introducing requirements for recycled and alternative plastic content. Multinational companies are actively seeking reliable, high-quality suppliers of sustainable plastic materials. These global shifts are creating new opportunities for Indonesia to strengthen domestic value chains, attract investment, and move up the circular economy value ladder.

PCII is designed to help Indonesia capture this opportunity by bridging local supply-side constraints with global demand and finance, while ensuring alignment with national development priorities.

– Investment mobilization for at least one investment project in Indonesia

– A pipeline of investment‑ready projects in recycled plastics and bioplastics

– Strengthened international partnerships, supporting technology transfer and sustainable supply chains

– Policy recommendations to inform government efforts on circular economy and green industry development

– Environmental and social benefits, including reduced plastic leakage, lower emissions, and improved livelihoods across plastic value chains

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