Rapidly growing volumes of plastic waste cause significant damage to the environment and the economy. There are currently 150 million tons of plastic in the world’s oceans and that amount increases by eight million tons every year. Indonesia is the second biggest source of plastic waste in the world and the country’s existing waste management systems are inadequate to handle the volume plastic trash generated. In addition to polluting the oceans and seeping into other critical water sources, the waste hurts key industries such as tourism and fisheries.
Solution and Impact
A DFC credit guaranty is supporting financing to Tridi Oasis, a Jakarta small business that recycles uses plastic bottles into packaging materials and textiles.
Tridi Oasis is the first investment supported through DFC’s credit guaranty to impact investor Circulate Capital, which provides financing to small businesses working to prevent ocean plastic pollution. DFC’s 15-year, $35 million, 50-percent loan portfolio guaranty is helping Circulate Capital to mobilize $100 million in private investment to reduce plastic waste in oceans in Southeast Asia, and build value chains that convert waste into usable products, while also creating jobs.
The investment in Tridi Oasis, which was founded and is owned and managed by two female entrepreneurs, also advances DFC’s 2X Women’s Initiative to advance women’s economic empowerment.