What are Waste Banks?

Waste banks (known as bank sampah in Indonesia) are a community-based initiative designed to incentivize residents to recycle by providing a mechanism for them to deposit recyclables in exchange for monetary benefits or household goods.

Here's how they generally operate:

• Community-Led Model: Waste banks are typically run and led by neighborhoods, often supported by facilitators and managed by formally employed operators. They operate independently of formal municipal solid waste management (MSWM) services.
• Source Segregation and Deposit: Residents are required to segregate their recyclable waste at source (in bins or garbage bags) and then deposit these recyclables at their neighborhood waste bank facilities.
• Exchange for Value: Upon depositing, waste bank operators weigh the waste and credit funds to the user's account. Residents can then withdraw these funds as cash or exchange them for goods and services, such as bill payments, school tuition, health insurance, staple foods, or hygiene products. In some cases, higher-income residents are encouraged to donate waste as a charitable act to fund social assistance programs for lower-income residents.
• Sales to Third Parties: Waste banks subsequently sell the collected raw recyclable materials to third-party buyers in the recycling industry. Governments may facilitate these sales and negotiate prices.
• Social and Educational Components: Waste banks often foster a sense of belonging and community among their members. They conduct outreach activities, training sessions, workshops, and seminars on waste management, including waste sorting, craft making (trashion), and upcycling. Influential figures and environmental cadres often encourage participation.
• Competitions and Recognition: Cleanliness competitions are sometimes held among waste banks or areas, offering material rewards (cash, vehicles, facilities) and public recognition to winners, which serves as a source of pride and symbolic reward.
• Impact: The waste bank model helps divert waste from landfills, provides supplemental income to users (especially lower-income residents and women), and promotes economic independence. It also helps shift mindsets and habits surrounding waste handling.

As of 2022, there were 11,646 waste banks established across 369 districts and cities in Indonesia, engaging 383,481 citizens and generating significant revenue from selling recyclables.