Typology of Informal Recycling Waste management - waste recycling activity in Indonesia

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1 Typology of Informal Recycling management - waste recycling activity in Indonesia 5 th Workshop of Asia Circulation Policy Research Singapore, October 4, 2011 EnriDamanhuri FTSL-ITB enri.damanhuri@gmail.com What is the informal sector in Indonesia? (1) (Activities) Mobile Early morning: Vendor: breakfast food, food for cooking Morning: Vendor: fruits, food, cold-drink, HH-utensils Repair: shoos, welding, umbrella Distributor: newspaper Community services: garbage collector Buyer (junkmen): used goods Evening: Vendor: food, hot-drink Community services: security Formal sectors Household pickers Stationary Early morning: Vendor: traditional market Morning: Vendor: traditional market, food-drink Repair: utensil, car, electronic/electric good Buyer (junkmen): used goods Transport: pedicab, motorcycle taxi Evening: Food-drink vendor, pedicab, motorcycle taxi 1

2 What is the informal sector in Indonesia? (2) (Relation) Formal sectors Business interaction Mobile Interaction: vendor, buyer, services, mostly with personal and trust relation Household No interaction Interaction: vendor, buyer, services, in many cases with more personal relation Stationary pickers What is the informal sector in Indonesia? (3) (Status) Mobile : not legal: no business permit, no taxation, etc. but no prohibition required by community no access to the formal financial structure Stationary : not legal: not registered, no business permit etc., no taxation, but no prohibition but they sometime use public utilities (pedestrian, etc) required by community no access to the formal financial structure Mobile west picker: they often throw the contents of garbage bags, take the plastic bag only not required by community municipalities do not ban, but do not support them. 2

3 and Used Goods Difference perception-definition as defined by developed countries Recycling effort = R/W W As defined by developing countries R W R Used goods wastes G Recycling effort = R/W or (R+G)/(W+G)? Used goods in developing countries = waste in developed countries The success of 3R programs is usually calculated from waste reduction activity only, and not from the used goods utilization and used goods recycling activities to generate income related to market mechanisms recycling activities to reduce waste generation related to waste management management waste recycling actors generators: MSW and Non-MSW operators: community association, local government, private company Collectors - Transporters: formal and informal MSW: households, waste trades, scavengers, intermediates, big collectors, --- Used goods/materials: households, waste trades, repair/refurbish/refill man or shop, trade-in in formal shops, secondhand / junk shops, informal mobile collector, etc Non-MSW: collector, transporter Hazardous waste: formal Recyclers: Formal and informal waste recyclers Co-processing industries Traders of recycler products, exporters, importers 3

4 Path Flow of MSW Recovered: Generators Collectors Recyclers Users Separated waste having potential to be recycled By community based organization: bank of waste, etc Generator Dry Mixed (in Bins) Operator Crews Scavengers recovery Mixed (dirty) waste having potential to be recycled Intermediate (LAPAK) (informal) Items separation: papers, plastics, etc Washing and drying Quality selection Packing COLLECTORS (BANDAR) Informal Separation of specific waste: exp plastics Clear, color HDPE, PP, PET Quality selection Pre-treatment: grinding, pressing, etc RECYCLERS Formal- Informal Quality selection according to the market (users) requirements Treatment: Pulping, pelletizing, etc MARKETS Brokers Export Inter-islands Local users Used goods recycling: Conducted by all levels of generators MARKETS Brokers RECYCLERS Formal- Informal Collector (Bandar) USED GOODS GENERATORS DEMOLITION Cloths Electronics Electricals Bateries,Cardtridge Newspapers Magazines Cartons Good packaging Metals Utensils, Furniture, etc (Donation) Trades (informal) Repair, refurbishment, Refill, Trade-in, etc (Informal/Formal) Secondhand, junkshop (Informal/Formal) Collectors Collectors 4

5 Formal and in used goods/waste recycling in Indonesia n NOT WASTE WASTE Formal Informal Foster father approach between Buyer and Seller Level: Scavenger Collector - First Intermediate Collector: Activity: Mobile, waste transfer points, waste final disposal Normally the same origin or the same family of waste buyer (First Intermediate) Getting place for accommodation from small boss Must sell all waste collected to small boss First Intermediate ( small boss ): Assure security for his members Prepare accommodation and facilities for his members Provide basic daily consumption (rice) Lending money to his members Determine the price of waste 5

6 Foster father approach between Buyer and Seller Level: Intermediate - Recycler Partner (Last Intermediate) : PET waste seller (or + scrap producer) can sell the PET scraps to other buyer, if it is pre-informed to the Buyer every month Partner will propose new tariff based on market price and it will be evaluated by Buyer Partner must deposit Rp as assurance that he will not sell the scrap to other buyer This money deposit will be refunded after 2 yrs of cooperation Buyer: Seller of PET scraps Recycler of PET Trains and develops his partner --- capable to produce good quality plastic scrap sets up the quality criteria must buy all the PET scraps produced by his partners THANK YOU 6