Singapore-based circular economy investment management firm Circulate Capital has invested in Indonesian plastic recycler Bumi Baru Plastic (BBP), marking its sixth investment in the archipelago.
Circulate Capital said the investment, whose amount was not disclosed, will fund BBP’s transition from pilot-scale production to a consolidated industrial site in Jonggol, West Java.
BBP is targeting a fivefold increase in processing capacity over the next two years, Circulate Capital said in a statement.
“BBP has developed advanced technical processing capabilities to convert some of Indonesia’s most challenging waste streams into high-purity, OEM-grade materials,” said Dondi Hananto, investment partner, Southeast Asia, at Circulate Capital.
Founded in 2022, BBP converts post-consumer and post-industrial plastic waste into recycled compounds for industrial applications, including automotive components, electronics and packaging.
The company processes materials such as end-of-life vehicle parts, industrial packaging, woven bags and manufacturing offcuts into recycled pellets designed to meet original equipment manufacturers’ specifications.
BBP supplies more than 50 plastic manufacturers, with customers in the automotive and woven packaging sectors. Its recycled materials go into products such as vehicle fenders, floor panels, and packaging, offering manufacturers an alternative to virgin plastic resin.
Hananto said BBP’s processing capabilities could help manufacturers use recycled materials in applications that require consistent quality and performance.
The company plans to consolidate its operations, upgrade wastewater treatment facilities and establish downstream manufacturing lines to produce finished products such as specialised compounds and bubble wrap for industrial and commercial customers.
It also aims to strengthen domestic feedstock supplies through a network of more than 400 collection partners.
“Our focus has always been on the hardest problems in polyolefin recycling: preservation of material properties and ensuring circularity,” said Kunal Nathani, BBP’s CEO and co-founder.
The investment comes about six months after Circulate Capital achieved a $220-million first close of its second climate fund. The first close represents more than 70% of its $300-million targeted fund size.
The firm has started deployment from the second fund into circular supply chains and recycling solutions across South and Southeast Asia, with a focus on plastic solutions and packaging, as well as electronics and apparel.
Circular Capital’s first fund raised $188 million.
