Study of Informal Recycling Business In Bandung, West Java, Indonesia

インフォーマルリサイクルビジネスに関する研究 ―インドネシア・バンドンを事例として―

Public Policy Design 06M55092 Agus Mujib Ali, Tatsuro SAKANO

ABSTRACT 本稿ではインドネシアの Bandung におけるインフォーマルなリサイクルセクターについて実態調査を 行った。Bandung では、廃棄物管理において、フォーマルなシステムに加え、廃棄物のリサイクルを 行うインフォーマルなセクターが大きな役割を果たしている。インフォーマルセクターは、Bandung の廃棄物のうち 18%をリサイクルしているが、これは行政の廃棄物管理にかかる費用の 8.6%削減に 相当する。そして、高度に組織化され、各主体の機能分担が明確になっているとともに、市場原理が 確立している効率的なシステムであることも明らかになった。また、この調査から、都市の貧困と廃 棄物の潜在的な価値がこのセクターの発展に寄与していることが示唆された。

1. Introduction Management of municipal waste has become a critical issue for Bandung city. The increase volume of waste cannot be supported by the capacity of the cleansing enterprise of Bandung. According to Statistical Bureau of Bandung, the city can handle around 54 % of generated waste. The remaining waste of 46 % is left in temporary dumping station (TPS) and assumed to be recycled by informal sector recycling. With this assumption, it can be interpreted that informal sector has important role to the city. However Medina (2005) pointed out that despite their large number in most African, Asian and Latin American cities, the informal sectors especially waste pickers have been largely ignored by scholars. There is also only a few study in Indonesia, especially in Bandung city. The objective of this research is to get better insight of the informal sector recycling role in municipal waste management. The focus is especially upon identifying entrepreneurial opportunities in the waste economy. I.2 The research Question 1. How important the informal sector role in municipal waste management in Bandung? 2. What is the structure of informal waste management system in Bandung? 3. How does the informal system work? 4. What are the possibility to improve waste management system as a whole? I.3 The Approach To answer the research questions, the following approach has been undertaken: 1. Conducting preliminary field survey; to identify waste management system in general, informal sector involvement and determine the sampling site

2. Sampling and interviewing: visiting TPS and interviewing waste pickers 3. Conducting interview with agents: small, middle and top agents; to explore actor involvement, waste exchange mechanism, price per unit recyclable etc. 2. The Importance of the Informal Sector Recycling This chapter discusses the importance of informal recycling sector in the context of municipal waste management 2.1 The relative importance of the informal sector recycling In the context of Bandung waste management, the role of informal can be interpreted as the complementary of the formal sector. It is described in the figure 1 that in the limitation of the formal sector in handling volume of waste generated by the city has given the informal sector a chance to reduce the rest of remaining waste by sorting them for recycling. In general, the important role of informal sector capacity is increasing and highly adaptable to the increase of total volume municipal waste in Bandung (figure 1) Figure (1) Trend of waste volume

2.2 The potential of the informal sector recycling in Bandung To elaborate the involvement of informal sector into waste management in Bandung, in the preliminary survey the writer analyzed the activities of informal sector from waste distribution of source point, temporary station (TPS) and dump site (TPA). As it

Table 1. And only 2. In general It can conclude that the structure of informal sector recycling is well organized and so coordinated. Sulawesi or other islands in Indonesia. Thus the biggest percentage is from west java province areas that is about 150 – 200 Km distance from Bandung city. local agent.0 %.The structure of informal recycling sector In Bandung context. economic condition and demand of recyclable material are scrutinized during 4. and no skill in this activities. residential status of waste pickers 3.3%).The Work of Informal System This section will elaborate the characteristic of informal sector and how the system works. The rest of the proportion is distributed evenly among house servant. they engage in waste picker because it give them freedom. 4. the waste picking activities is dominated by immigrant from West Java Provinces area.0 %. middle management and top management. As his base camp is located in TPS or TPA. In general. Middle agent can be subordinate of a big agent or his business partner. especially from the east areas.0 % and 5. Being a direct supplier of recycling factories.0 %. It can be illustrated like the structure in a factory. stable income. the structure of informal sector recycling is categorized by several elements. The actors involved are waste pickers. the residential status of waste pickers is categorized into four origin areas: Bandung city. 23.2. Figure 3. Table 2. The flowing scheme of waste and leaking points field survey. 70. The questions related to their socio demographic condition. factory worker. They function as producer of raw material of recyclables. actors involvement. There are labors in the low level. he is the one who directly gets in touch with waste pickers. A small agent can act as foreman in factory. Figure 2. no investment. the series of interviews with actors of informal recycling have been undertaken. Some migrants then found difficulty to find a job or unsatisfied with the previous one. West Java Province and out of west Java Provinces. Social Relationship Social relationships among those who involved in the informal sector of recycling activities is one of the factors that influences the work of the informal system.2%) and farmer (16. accounted for about 30 %. the relation among actors. then it is used by agent . foreman. The field survey finds out that the social relationship characterized into two conditions. the structure of their operation work like formal. To identify the characteristic and the system work. The percentage of their number is respectively 2. middle agent and big agent (whole seller). as well as the municipal waste workers. etc. The previous occupation Big agent in informal sector recycling can act as a top management.0%.can be described in the figure 2.1 Demographic Condition Based on figure 3. relationship among the actors and exchange mechanisms (table 1). homogenous group of west pickers and patron-client relationship. Bandung districts. his recognition of price and recyclables the factories need makes the top agent having a negotiation power among other actors in informal recycling sector. 4. The field survey revealed that although it is informal sector. Waste pickers are like labor in factory. waste pickers are from Bandung city. Homogenous indicate that they tend to occupy TPS with group of people from the same region of origin and patron client relationship happens since waste picker as migrant are vulnerable and having strong dependency for survive. The structure of informal sector recycling While the table 2 shows the previous predominant occupations are seller (51. The figure can indicate actively involvement of waste pickers in each stages of waste flow in Bandung. No one is from Sumatra.

While minimum industrial wage in Bandung city is Rp.8 Metal 505. is adopted. To put the issue into perspective. 5. waste picker should sell the recyclable to them with low price. In the questioner.9 waste picker is Rp. the average daily income that waste pickers have. For instance. It can be inferred that the more accumulation of recyclables the more benefit agents will have.565 per month. waste picking the writer assumes is not temporary job. With several adjustments of questions. The field survey revealed that there are generally 5 categories of marketable material which are daily collected and recycled by informal sector especially waste pickers.6 total 4562. 4. once in a week. questioner was also given to the agents. 450. it would very likely accumulate in the city and contribute to degradation of environment. The average monthly income of . 830. 4.5 Rubber 237. the following calculations illustrate the quantum of waste removed by the waste pickers from the waste stream.882. All categories is divided into several subcategories based on type of virgin materials and forms (Description and percentage of each types is available in appendix 1. given the percentage of uncollected waste. the writer firstly asked the waste pickers about the quantities of waste they collected per day on average of the previous week and also the value of each materials purchase to the local agent.2.2.for their profit. The calculation description is as follow. Therefore. clearly reduce the quantum of garbage that has to find its way to disposal sites. Therefore. rubber. The real description of economic condition of agents can be illustrated by combining the profit margin and recyclable accumulation. By using the data above. The waste picker is slightly competitive compared to minimum wage that set for industrial sector. They are plastic.860.2 Glass 869. Role of informal sector recycling in waste management The role of informal sector recycling to the city can be generally correlated with the amount of volume recycled waste in the context of reducing available waste in the city and the value of that recycled 5. the income condition of each actors in informal sector recycling can be calculated.1 Types of marketable materials The primary objective of waste picking is identifying and collecting marketable materials from mix waste. If this were not collected by them. papers. The figure 4 shows that chain of recyclable supply is accumulated gradually in every agent. papers and metal (30%).000 per month (based on an interview April 2008). glass and metal. Since most of them have holiday. It is clear that the daily or monthly income of waste picking is a strong incentive for waste pickers even they have to face the poor condition of working. (table 3) Table 3 The recyclables collected by waste picker (in Kg) Plastic 2333.8 Papers 616. This accumulation will give impact to the increase of gross benefit as it is calculated with the profit margin of every recyclables.1 Ecological Contribution The waste collected by waste pickers. Furthermore their income is almost double compared to the contract municipal waste workers who earn Rp. The rest of percentage is distributed evenly among rubber.2 Economic condition The price mechanism has been identified in the field survey by giving a questioner to all actors of this sector. some of them are “want to have a better and stable income”. The result then is divided by the number of waste pickers (137 people). The most dominant material collected is plastic (51%) and the second is glass (19%). It is waste pickers` choice after comparing to the available jobs in urban city and it can be reinforced by referring to the previous demographic data of their reason of being waste picker. monthly income is calculated by multiplying the average daily income with 26 days. Figure 4. The accumulated recyclable material . Average income of waste pickers The financial condition of waste pickers can be found by firstly calculating all total value of each recyclable that waste pickers purchase to small agent.

Need to conduct official census of waste picker exist in Bandung. Economic Contribution No less important than the environmental implications of reducing the total quantum of waste to be transported and disposed is the impact on the municipal expenditure. (2003). As long as poverty and waste exist in combination. Tokyo.. S. To find the cost saving of waste management resulting from this operation. While the value of recyclables is calculated almost equal with the cost of disposing remaining waste 6. informal recycling especially waste picking is always a reality in urban life 2. C. (2004).2 Recommendation 1.499. go. Environment. is estimated by multiplying 19 M3 with Rp.2. It mean that it can decrease availability of land for TPA and also saving resource and energy as factory are using second material. http://www. The value is almost equal with cost of waste management. recycling rate 6. Greater Bandung Waste Management Corporation. Under West Java Environmental Management Project (WJEMP). . Netherlands OntarioWilson. Informal recycling system is structured through network of market mechanism among waste picker. Since the recyclable is also marketable. The estimated value of recyclables 6. P.elsevier. The table 4 shows that every material collected. (2007) Value of Gross Output. how much contribution that waste pickers can save the cost of municipal waste management? To answer that question. January. they are poorest in the hierarchy trading in informal sector 4. Dikshit. Foundation for Advanced Studies on International locate/habitat. Need to increase collaboration between formal and informal as well as community in general to achieve zero waste program by using market mechanism in order to encourage all actors to participate. Input Cost and value Added at Market Prices.563 Kg of waste per days or it is the same with 19 M3 per day. 21.. Accessed on June.. local agent. Waste pickers are not the poorest in the society. It can also be seen from perspective of the value of waste recycled by waste pickers.078. Informal sector reach 18 % of recycling rate and converted to cost saving of municipal waste is around 8. D. it means that we can monetize the value of the waste collected by them. India Figure 5 shows that waste picker can reduce waste by recycling around 18 %.373. New Delhi. By taking again the sample research from 22 TPS. Shifting the focus from problem to potential..6%. 400. Take the case of 22 TPS. INFORMAL WASTE MANAGEMENT. Kluwer Academic Publisher.1 Conclusion 1. Role of informal sector recycling in waste management in developing countries. and their role to the waste management in Bandung. M.. Lack of job opportunity in formal and informal sector in the main factor of their involvement in waste picking 3. References Badand Pusat Statistik Jawa Barat. While waste pickers can collect and recycle the waste around 4. 2. 5.bps. middle agent and top agent 5. The writer then adopted about Rp. Waste Picker Cooperatives in Developing Countries. Indonesia Hayami.482 per days the city can save the cost of waste management for 22 TPS. Medina. Jaffe. 2005 Ahmadabad. accessed on June 2008 Sarkar. Y. P. Waste Pickers and Collectors in Delhi: Poverty and Environment in an Urban Informal Sector. Need to establish waste picker cooperatives as a means of achieving standard of living for its member. Mishra. R. Solid Waste Management in Delhi—A Social Vulnerability Study.Figure 5. 3. Moreover. Paper prepared for WEIGO/Cornell/SEWA Conference on Membership-Based Organizations of the Poor. (2006).1 per day. Development and Sustainability. http://jabar. Cheesman. has very immense amount of value with total calculation around Rp. dignify their occupation and strengthen their bargaining position with agents and industries. Toxics Link.html. 4. (2003). Technical Assistance for Greater Bandung Waste Management Corporation: Interim Report. Table 4.. 2008 GBWMC (2007). India. Velis. A. (2005). C. CONCLUSION AND RECOMMENDATION The findings of this research have basically described profile of informal sector recycling especially waste pickers. It may indicate that the value of recyclable can cover the cost. Bandung. we have to estimate how much cost that the city spends per meter cubic waste.

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