Dow, Inc. (Midland, Mich.) signed a second memorandum of understanding (MOU) with PT Eterna Persada Indonesia (PT Eterna), a leading Indonesian recycling company under the Pan Era Group. This agreement will strengthen the collaboration between the two companies to increase the supply of high-quality post-consumer recycled (PCR) resins and advance the plastics circular economy in Indonesia. The new MOU builds on the successful partnership established in October 2022, which saw the launch of several new PCR resin grades for several applications, including collation shrink film (CSF). Dow also recently announced a partnership in Asia Pacific with SCGC related to plastics recycling.
Under the terms of this second agreement, Dow will develop a target volume of flexible polyethylene PCR resins from Pan Era Group over the next three years. These high-quality PCR resins are manufactured under stringent processes to meet Dow’s standards. They incorporate Dow’s advanced technology along with Pan Era Group’s decades of experience in this field, providing comprehensive solutions to end-customers. In addition, Dow and Pan Era Group will also explore the potential of developing new PCR resins for different applications, such as wire and cable jacketing, leveraging Dow’s materials science expertise and Pan Era Group’s local waste collection capabilities.
“This MOU comes at a time when Indonesia’s recycling industry is undergoing a pivotal transformation, driven by increasing consumer awareness on environmental protection, supportive government regulations, and corporate sustainability initiatives,” says Wilson Pandhika, managing director of Pan Era Group. “The Indonesia government has been actively encouraging the development of a circular economy, which aims to optimize resource use, reduce waste, and create value from recycled materials. This collaboration between Pan Era Group and Dow not only aligns with these national goals and international targets but also demonstrates a shared commitment to fostering sustainable practices and driving a circular economy.”
“We are excited to strengthen our partnership with Pan Era Group. This agreement marks a significant milestone in our partnership and is a testament to Dow’s commitment to advancing circularity and meeting the growing demand for PCR in Indonesia and across Asia-Pacific,” says Bambang Candra, Asia-Pacific commercial vice president of Dow Packaging & Specialty Plastics. “By working together, we can create high-quality materials and advance recycling technologies to drive growth for the recycling industry in Indonesia. The increasing environmental awareness and government regulations in Indonesia present a unique opportunity for us to expand our portfolio of post-consumer recycled (PCR) resins.”