WGSH Eyes Up to 40% Revenue Contribution from Recycled Plastic Business

Jakarta, TopBusiness – PT Wira Global Solusi Tbk (WGSH), or WGS Venture, through its startup Blue Phoenix Industries (www.bluephoenix.id), has just received its first payment from its new business activity: the trading of recycled plastic. The issuer, focusing on holding company activities and information technology, said it had received the initial payment on 2 March 2026 from a manufacturing partner in a collaboration to supply recycled plastic pellets (rPET) to a multinational company in the packaged drinking water (AMDK) industry. “This partnership is aimed at supporting the fulfilment of Environmental, Social, and Governance (ESG) commitments for the customer, including contributions toward achieving the carbon credit target program,” said WGSH Director Hendy Rusli in the information disclosure to the Indonesia Stock Exchange (BEI) on Wednesday, 4 March 2026. Hendy explained that the business model developed by BluePhoenix represents a real circular economy implementation. That is, post-consumer plastic bottles are collected, processed into clean and homogeneous flakes, and then further manufactured into food-grade quality plastic pellets. “These pellets are used as feedstock for new bottles, thus creating a recycling loop and reducing the industry’s dependence on virgin plastic (vPET),” he said. Using recycled materials, he continued, offers significant environmental benefits, including the potential to reduce carbon footprint by more than 70% and opportunities to accelerate the achievement of global sustainability targets. According to him, based on the cradle-to-gate study by Silva et al. (2024), the transition from vPET to rPET demonstrates significant environmental impact reductions in the Global Warming category. Using rPET in flakes form can cut the carbon footprint by up to 81%. Quantitatively, for every kilogram of virgin PET produced, the alternative rPET yields emissions of only about 19% to 31% CO2 eq, a figure crucial to supporting sustainability targets and net zero emission goals. “With this business, there will be a positive impact on the company. It is estimated that initial sales volume will be around 300 tonnes per month with a cash-to-cash cycle of about 30 days. In addition, with potential growth in sales volume in the second half of the year, the company expects additional contributions to consolidated revenue and gross profit of around 40%,” he said. For continued development of this business, the company will allocate working capital or capex. The working capital needs to support BluePhoenix’s activities will be funded through a bank’s Demand Loan facility. That facility’s ceiling was increased in December 2025 using as collateral the private property assets owned by the Chairman of the Board. And this funding structure enables operational activities to proceed without disturbing the group’s main liquidity. Nevertheless, he acknowledged the risk: the main risk of this business is dependence on manufacturing partners in the supply chain. If the partner’s operations are disrupted, this could affect the ongoing cooperation. However, both the raw materials and the recycled pellet products have industrial commodity characteristics that can be marketed to other buyers, including AMDK companies and other industrial customers. For information, WGS Ventures or WGSH is a holding investment and information technology company listed on the Indonesian stock exchange. The company owns more than 20 portfolios in Indonesia and Southeast Asia, across four sectors: Technology, Property, Food, and Manufacturing. WGSH has a financial ecosystem network with institutions such as banks, fintechs, venture capital, legal and business consultants. WGSH’s success in digital technology has been recognised by credible regional institutions with the prestigious South East Asia Chief Information Office Network (XCION) Award, Jakarta (2025). WGSH strives to realise its commitment to environmental conservation, one example being its investment in the BluePhoenix.id startup. Initiatives and commitments to social issues are also pursued through various training programmes offering opportunities to youths via bootcamps conducted by the WGSH group.