Many Cities Don’t Have Recycling Facilities, INOV Develops a Sustainable Plastic Waste Value Chain System

Thepresidentpost.id - Jakarta, May 3rd 2023 – Knowing that there are many cities in Indonesia that do not have recycling facilities, PT Inocycle Technology Group Tbk (INOV), continue to develop a sustainable value chain for plastic waste.

For this reason, INOV continues to actively expand by building washing facilities to collect plastic waste in various cities throughout Indonesia.

As a listed company engaged in recycling plastic bottle waste (PET) into Recycled Polyester Staple Fiber (RePSF INOV is keenly aware of the importance of securing raw materials by building a sustainable value chain for plastic waste.

"Securing the availability of raw materials is very crucial for INOV's business continuity. So, the expansion that we are continuing to actively carry out is part of the strategy to secure the sustainability of our PET waste recycling business," said the Director of INOV, Victor Choi.

Meanwhile, INOV's investment in PlasticPay, which provides Reverse Vending Machines (RVM) and Mini Dropbox solutions to collect plastic waste directly from users, has successfully supported INOV's efforts to build a sustainable value chain for plastic waste. Where currently, PlasticPay has more than 60 RVM machines and 600 Mini Dropboxes that are used in various locations.

Thanks to the vigorous expansion steps implemented over the years, INOV has operated factories and washing facilities in 9 cities, such as Tangerang, Solo, Mojokerto, Salatiga, Palembang, Medan, Gowa, Takalar and Subang. The company continues to strive to expand its facilities every year, even during the pandemic it has opened new facilities in Medan and Makassar.

At the beginning of this year, the Company has also expanded its new washing facility in the Subang area.

In the first quarter of 2023, the Company posted a 146% YoY increase in net profit for the year, from IDR 6.09 billion to ID 14.95 billion. The increase in net profit was supported by a decrease in cost of goods sold and an increase in other income due to an improved and stable rupiah exchange rate.

The  company  recorded  net  sales  of  IDR 145.20 billion, down from IDR 184.75 billion in the same period the previous year. The cost of goods sold was recorded at IDR 115.71 billion, down from IDR 149.60 billion in the first quarter of 2022.

Thanks to the steadily improving rupiah exchange rate, in the first quarter the Company enjoyed other income of IDR 25.53  billion,  shoot up compared to IDR 2.35 billion in the same period the previous year.