The waste bank is a community-based organization whose establishment can be initiated by the government, NGOs, or the private sector. The operation is driven by the community in an economically viable and environmentally friendly manner. Waste bank as a business is owned by people who consider waste as a valuable economic commodity and savings have instruments that involving the community in waste management.
The waste bank has a similar system to regular banks. People have an account at a waste bank and bring their household waste (usually non-organic) to the bank and the monetary value of those waste are determined based on the rates by secondary waste collectors. People can save the value in their accounts and withdraw when necessary. Many waste banks are operated by females.
The first waste bank in Indonesia was established in Bantul, Yogyakarta in 2008. In 2017, the number of waste banks grew significantly, increasing from 5,244 to 7,488. Customers of waste banks also grew quite notably over the last five years. In 2018, the number reached more than 200,000 waste bank customers. On 15 March 2017, the Waste Banks Association (ASOBSI) was established. Waste bank managers also have routine coordination meetings every year. The contribution to the waste reduction impact by a waste bank (amount of waste collected in waste banks) against all waste generation in Indonesia was 1.7% in 2017 and, 2.37% in 2018.
quoted from: National Plastic Waste Reduction Strategic Actions for Indonesia, Republic of Indonesia by Ministry of Environment and Forestry, Republic of Indonesia