 |
With this new agreement, Dow will acquire its flexible polyethylene post-consumer recycled (PCR) resins from Pan Era Group.
JAKARTA, Indonesia, May 7, 2025 /PRNewswire/ — Dow (NYSE: DOW), a global leader in materials science, 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).
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.
Meeting Indonesia’s drive towards a circular economy
“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.”
High resolution images available upon request.
About Dow Packaging and Specialty Plastics
Packaging and Specialty Plastics (P&SP), a business unit of Dow (NYSE: DOW), combines core strengths of R&D, worldwide reach, broad product lines and industry expertise to deliver high performing technologies for end use markets in food packaging, personal hygiene, infrastructure, consumer goods and transportation. P&SP is one of the world’s largest producers of polyethylene resins, functional polymers, and adhesives, and enabled by Pack Studios, is a leading innovator and collaborator across the value chain on sustainable application development and circular economy life-cycle design for plastics. www.dowpackaging.com.
About Dow
Dow (NYSE: DOW) is one of the world’s leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 30 countries and employ approximately 36,000 people. Dow delivered sales of approximately $43 billion in 2024. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.
About Pan Era Group
Pan Era Group is one of Southeast Asia’s leading and longest-established polyolefin recycling companies, known for pioneering sustainable plastic solutions. Through a comprehensive and integrated recycling process, the company maintains high operational standards while promoting the circular economy and reducing plastic waste’s environmental impact. By sourcing 100% of its input material from locally collected plastic waste in Indonesia, Pan Era Group helps to create social impact across the waste collection value chain. Its commitment to innovation and sustainability drives the delivery of high-quality recycled materials that help close the loop on plastic waste. To learn more, visit www.paneragroup.com.
