INOV Poised to Absorb PET Recycling Market Potential
By : Nata Kesuma | Thursday, September 14 2023 - 15:15 IWST
PT Inocycle Technology Group Tbk ("INOV")
INDUSTRY.co.id - Jakarta, 12 September 2023 – The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for the near future. In the first half of 2023 INOV managed to record an increase in INOV's performance as reflected in an increase in its net profit and operating profit, in line with improved macroeconomic conditions.
In addition, INOV is in a favorable position because the circular economy has been receiving increasing attention lately, thanks in part to the significant opportunities that exist for the plastic waste recycling industry and the growing environmental awareness of individuals and businesses.
In 2022 alone, recorded investment in this sector will reach IDR 20 trillion. Not only in Indonesia, the demand for recycled plastic ore from European countries has also increased significantly due to a wave of consumers who are starting to switch to using environmentally friendly raw materials.
However, the relatively young recycling industry still has a lot of room for improvement. Currently, only around 20% of plastic waste in Indonesia can be used as raw material for plastic with food grade quality. One of the efforts to address this challenge is by increasing the number of recycling centers in small, medium, and large cities in Indonesia to create a value chain for PET waste.
"We have been actively working to increase the collection of plastic waste as raw material for recycling from the community, including continually expanding the recycling centers in cities across Indonesia. For example, our latest initiative involved opening a washing facility in Subang, West Java, which began commercial operations in the second quarter of 2023. In the future, we aim to explore other cities as well." explained Director of INOV, Victor Choi.
INOV is the company listed on the Indonesian stock exchange which has the largest PET waste recycling capacity, namely around 43,000 tons per year. As a group, the company operates in more than 20 locations, including Tangerang, Solo, Mojokerto, Salatiga, Palembang, Medan, Makassar, Subang, and other cities to secure the raw material (PET waste). The extensive operational area also enables INOV to save on logistics costs.