The world is finally catching up to a simple fact: you cannot solve the ocean plastics crisis in the ocean alone. You need to solve it on land too.
As we mark World Oceans Day and gather at the UN Ocean Conference next week, that truth has never been more urgent, or more investable.
For years, the most visible focus on ocean plastics has centered on what happens after waste enters the water, from cleanup technologies to capture devices. These efforts play a valuable role in addressing the plastic already polluting our oceans. But the larger, investable opportunity lies upstream: stopping plastic waste from leaking into the environment in the first place by building the supply chains to collect, sort, recycle, and reuse plastic before it ever reaches waterways. That’s where private capital can generate both environmental impact and financial returns.
Momentum is building as multinationals, private investors, and development finance institutions become engaged. Recent examples include Circ’s $500 million polycotton recycling plant in France – the first to recover cotton and polyester at industrial scale – and Hindustan Unilever’s equity investment into Lucro in India to help scale flexible plastic recycling and secure recycled feedstock.
And yet, we are still barely scratching the surface. According to The Circulate Initiative’s Investment Tracker, between 2018 and 2023, private capital invested an average of $32 billion annually into plastics circularity, far short of the estimated $1 trillion needed by 2040 to reduce plastic leakage by 90%. Of the $190 billion invested globally over that period, only 10% reached Asia, despite the region being at the epicenter of both the problem and the opportunity.
That disconnect is most visible, and most solvable, in South and Southeast Asia. Whether you’re an investor focused on ocean plastic, climate mitigation, or nature-based solutions, investing in land-based recycling and circular supply chains can generate both environmental benefits and competitive returns.
South and Southeast Asia: Where the Opportunity Outweighs the Risk
The Asia-Pacific region accounts for roughly 50% of global plastic production and 46% of global plastic waste, making it both the center of supply and one of the largest sources of mismanaged waste. Recycling mismanaged plastic waste in South and Southeast Asia could prevent 229 million tons of greenhouse gas emissions, equivalent to shutting down 61 coal-fired power plants for a year.
While the macro-environment is driving uncertainty, local and regional circular economies are strengthening to enable the most resilient recyclers to thrive. Global brands are expanding local partnerships and sourcing strategies to meet recycled content targets. At the same time, policymakers are introducing stronger regulations to drive circular economy adoption and reduce plastic leakage.
But while the market fundamentals are aligning, many of the businesses capable of delivering these solutions still face significant growth barriers, and that’s where private investors are uniquely positioned to bring not just capital, but operational expertise and market access.
Indonesia – A Case Study in Untapped Scale
Indonesia’s recycling sector is dominated by thousands of small and mid-sized operators, many of them profitable but operating informally, with limited capital, technical expertise, or global partnerships. Current recycling rates remain low: 27% for PET, 18% for polypropylene, 12% for LDPE, and less than 1% for multilayer plastics.
Meanwhile, demand drivers are accelerating:
- Indonesia’s growing middle class is increasingly focused on climate and environmental issues. According to recent GlobeScan research, climate change and single-use plastics now rank among the country’s top three global concerns, even higher than the global average, with consumers expressing stronger expectations of global brands to take leadership on environmental action.
- Global brands like Danone are positioning themselves as environmental sustainability leaders to meet rising consumer expectations by increasing recycled content.
- New regulations, including Indonesia’s Extended Producer Responsibility targets, are pushing producers to increase recycled content and reduce waste, while taxes on virgin polyolefins are tilting economics in favor of recycled materials.
And critically, Indonesia already has a base of proven local companies with the potential to scale into regional leaders if paired with smart capital.
What “Smart Money” Means in Recycling
Smart money in this sector is more than funding. It’s about bringing the right mix of capital, technical expertise, offtake partnerships, and global best practices to help businesses professionalize, scale, and compete internationally.
We’ve seen this model work firsthand through several companies in Indonesia:
- POPSEA (Prevented Ocean Plastic Southeast Asia): A collection platform operating in high-risk coastal communities, POPSEA helps prevent waste leakage while producing high-quality, traceable recycled content for global brands. Their newest site in Borneo is the first of its kind in the region.
- Polindo Utama: A family-owned PET recycler founded in 2005, operating a fully integrated collection and processing model. With targeted investment, Polindo is positioned to become one of Southeast Asia’s leading end-to-end recyclers across multiple plastic streams.
- Pelita Mekar Semesta: Founded in 2009, Pelita focuses on polyethylene recycling and blow-film manufacturing. With growth capital and operational support, Pelita has the potential to become a professionally scaled leader in Indonesia’s recycling sector.
These companies (and many more like them) are already proving that viable solutions exist. The opportunity is to help them unlock the next phase of growth.
The Time Is Now
As world leaders, policymakers, and investors convene this week in Nice at the UN Ocean Conference to advance solutions for ocean health, it’s critical to recognize that many of the most scalable answers are already in motion, but undercapitalized.
The path forward is not to wait for the perfect technology or for multilateral action to catch up. It’s to channel smart capital into proven enterprises in high-opportunity markets like Indonesia and Southeast Asia that are ready to scale today.
Doing so won’t just help protect the ocean. It will generate commercial value, create jobs, build resilient supply chains, and contribute meaningfully to global climate goals. The real question is who will move first, and who will watch from the sidelines as others build the value chains of the future.
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