Pioneering a circular future for plastic bottles in Indonesia

Challenge

Veolia worked in partnership with Danone Aqua to build the largest PET bottle-recycling plant in Indonesia. Using innovative technology, the facility recycles and processes PET plastic bottles, and turns the material into high quality food grade pellets. These pellets are used to produce new bottles, creating a closed loop system.

Veolia's solution

This facility has helped to deliver a range of benefits: for the environment, for our customers and for the local community. The large volume of material processed at the site contributes to a reduction in the amount of plastics that may not have been recycled, and may have ended up contributing to the global problem of plastic pollution.

In addition, this long term collaboration is helping Danone to achieve its target for 2025 to increase recycled plastics in their packaging, by ensuring they have a consistent supply of circular polymers and the full support of a pro-active world class industrial partner. This project is also supporting the company to carry out its commitment to collect more plastic waste than it produces by 2025 - a clear example of organisations collaborating to preserve natural resources.

Crucially, there are also social benefits to the local community and beyond. As the first facility of its kind in Indonesia, the site has helped to advance the country's recycling infrastructure and increase the level of plastic waste collection in Indonesia, and create a circular economy. The facility has also provided 225 jobs for local people, and offers sustainable employment with no unethical practices such as child labour, which is unfortunately common in Indonesia. The “sustainable sourcing program” launched as part of the project provides a livelihood to members of the local community, supporting disadvantaged areas.

Specific Benefits

• Social value
  Veolia participates in the structuring, development and even creation of a waste value chain, emphasising the social benefits for all stakeholders.
   
• Local loop
  Cradle to cradle system that directly transform waste into the same product, and this for several life cycles.
   
• Dedicated asset
  Strong and comprehensive partnership to build a specific recycling line or facility.
   
• Sustainable pricing model
  Business model ensures the vitality, stability and sustainability of the entire value chain while addressing the specific needs of customers.
   
• Food grade
  Circular polymers cope with the most stringent industrial, legal and safety standards to be used in contact with beverages and food..