Circulate Capital backs Indonesian recycler BBP in sixth archipelago bet
What's the deal? Circulate CapitalDealroom has a profile for this one. Try Dealroom →, a Singapore-based circular economy investment firm, has invested an undisclosed sum in Indonesian plastic recycler Bumi Baru Plastic (BBP)Dealroom has a profile for this one. Try Dealroom →. It marks Circulate's sixth investment in Indonesia.
What's the endgame? The money will fund BBP's shift from pilot-scale production to a consolidated industrial site in Jonggol, West Java. The company is targeting a fivefold increase in processing capacity over the next two years.
More on BBP: Founded in 2022, it converts post-consumer and post-industrial plastic waste — including end-of-life vehicle parts, woven bags, and manufacturing offcuts — into recycled pellets. Its materials go into products such as vehicle fenders, floor panels, and packaging, offering manufacturers an alternative to virgin plastic resin.
BBP already supplies more than 50 plastic manufacturers in the automotive and woven packaging sectors. It plans to upgrade wastewater treatment, add downstream manufacturing lines for specialised compounds and bubble wrap, and strengthen domestic feedstock through a network of more than 400 collection partners.
"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 for Southeast Asia at Circulate Capital.
"Our focus has always been on the hardest problems in polyolefin recycling: preservation of material properties and ensuring circularity," said Kunal Nathani, BBP's chief executive officer and co-founder.
Why now? The deal lands about six months after Circulate reached a $220 million first close of its second climate fund — more than 70% of its $300 million target. Its first fund raised $188 million.
The signal: Circulate has begun deploying the new fund into recycling and circular supply chains across South and Southeast Asia, with plastics and packaging a core focus. BBP shows how recyclers are moving beyond collection toward OEM-grade output that can compete on quality with virgin resin.
Read more: dealstreetasia.com
Image credit: Generated with Gemini
