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ABSTRACT
The waste generation growth in Indonesia has reached 64 million tons in 2015 and shown increasing trend overtime. This issue occurs because of the people's habits in handling waste by disposing it into open sewage or disposal without sorting organic and inorganic waste with no further processing. To overcome this issue, a waste management initiative, namely "Waste Bank", has been implemented recently in Indonesia. As one of the community-driven initiatives, the waste bank existence can influence patterns of behavior and economy of the society. This study aims to explore the implementation of waste bank in Indonesia. To achieve the objective, the business model of waste banks in Indonesia are analyzed by synthesizing secondary data related to the waste bank's strategy and its impact in Indonesia. Waste banks that exist in Indonesia in terms of business model are classified into four groups: savings, health, community entrepreneurship, and energy.
JEL Classifications: K32, L26, L31, I18
Keywords: waste management; waste bank; business model, Indonesia
I.INTRODUCTION
The rapid changes on urbanization, industrialization, and economic development have caused the increase of waste generation. Waste is defined as leftover material that is not considered directly used because of human activity. There are two types of waste, namely organic and inorganic waste, which are then sub-classified into two groups: household and non-household waste. Yudoko (2000) underlined that the growth in household consumption is proportional to the increasing amount of household waste. In developing countries such as Indonesia, the main source of non-household solid waste comes from commercial establishments, markets, institutions, street cleanings, hospitals, and manufacturing businesses (Yudoko, 2000). Every country has concentrated on addressing waste management issues. Issues such as lack of proper disposal, long-term planning policies, scavenging, the growth of population in urban centers, the use of inappropriate technology and equipment, and the insufficient knowledge of the basic principles are some of the problems faced by developing countries in dealing with Solid Waste Management issues (Diaz, 2011).
In the context of waste management, open dumping and burning waste become common practices in Indonesian community. More than 90% of districts/cities in Indonesia implement these practices. The amount of waste generation in Indonesia has reached 175,000 tons/day or equivalent to 64 million tons in 2015 (Kementrian Lingkungan Hidup, 2015). Data in...