The concept of waste bank emerged in Indonesia with the introduction of the 2008 waste policy and materialized into action through the Ministry of Environment Regulation 13/2012. It provides a comprehensive framework for the establishment and development of waste banks in 250 cities across the country. The primary focus of the waste banks is to serve as a collection point for waste materials that have further prospects of recycling and reuse.
The 13/2012 regulation specifies the requirements, mechanism and operation guidelines for waste banks, recognizing their integral role in application of the 3R principles and the extended producer responsibility (EPR). It shifts from the traditional collect-transport-dispose approach to a more sustainable model focused on waste segregation and recycling of valuable waste.
Waste banks are typically run by the community with technical assistance by the central and local governments. In other cases, it might also be initiated by the local governments or the private sector under their corporate sector responsibility (CSR) programs. In general, they function as a collection point where residents can deposit their waste. The sorted waste is eventually purchased by junk collectors for further processing and the depositors receive nominal cash as an incentive in return of their waste.
Overall, the policy sets waste banks as crucial intermediaries in waste management that act as buffer points for collection of recyclables rather than allowing them to end up in landfills.