PT Marubeni Indonesia, a subsidiary in which Marubeni Corporation holds a significant interest, has recently formalized a Memorandum of Understanding (referred to herein as "MOU") with PT Khazanah Hijau Indonesia (hereafter "Rekosistem"), an innovative startup based in Indonesia, with the shared objective of fostering a recycling enterprise. Effective April 2022, Marubeni Indonesia will embark on a Proof of Concept (POC) initiative in partnership with Rekosistem, focused on the collection, processing, and marketing of recyclable waste materials.

Rekosistem operates a digital platform designed to streamline the collection of diverse waste materials, encompassing plastics, cardboard, paper, glass, e-waste, among others, sourced from both corporate entities and individuals. Users are incentivized through a point-based system, redeemable for electronic payments commensurate with the volume of waste deposited. Subsequently, Rekosistem facilitates the onward sale of the gathered waste to recycling facilities.

Indonesia faces escalating waste emissions attributed to its burgeoning population. Of particular concern is the rampant discharge of plastic waste into the oceans, with Indonesia ranking as the world's second-largest contributor to ocean-bound plastic waste, following China*. Addressing this pressing environmental issue necessitates the establishment of a robust waste collection infrastructure and the widespread adoption of recycling practices. Recognizing this imperative, the Indonesian government has introduced new regulations mandating a 30% reduction in total waste output by all manufacturers by the conclusion of 2029.

Aligned with the stipulations delineated in the MOU, Marubeni Indonesia is positioned to lead the charge in waste collection endeavors across Indonesia in partnership with Rekosistem. Simultaneously, Marubeni Indonesia will take the helm in advancing a holistic recycling enterprise, harnessing the extensive network and resources of the Marubeni Group.