Economic outcomes and community participation in rural waste bank initiatives: A study from Indonesia

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Type of the article: Research Article

Abstract
Waste banks have emerged as a community-driven strategy that encourages households to sort and trade recyclable waste, generating economic value while reducing environmental burdens. This study examines the economic contribution of waste banks in rural areas and evaluates the level of community participation in their management. Data were collected through an online survey conducted from April to May 2024, involving 118 rural decision-makers, village heads, officials, village-owned enterprises’ (BUMDes) directors, and members of the village consultative body across Indonesia. Respondents represented from Java (34%), Sumatra (33%), Sulawesi (13%), Bali and Nusa Tenggara (7%), Kalimantan (5%), and Papua (3%), providing broad geographic coverage. A logit model was used to identify determinants of economic impact. Results show that routine waste bank operations, combined with training or socialization programs, significantly enhance economic benefits at the 1% level. Community participation in waste collection also makes a positive contribution. Overall, 70.3% of respondents reported improved village economic conditions, and 66.1% observed increased BUMDes revenue from waste bank initiatives. Participation analysis using Arnstein’s ladder reveals that most residents remain at the consultation stage, with limited decision-making power. Strengthening community empowerment and expanding capacity-building programs are, therefore, essential to maximize the social and economic potential of rural waste banks.

Acknowledgments
We would like to thank PT Bank Rakyat Indonesia (PT BRI) and Universitas Sebelas Maret [Sebelas Maret University] for the funding support and all the respondents who participated in this research. PT Bank Rakyat Indonesia (PT BRI) funded this research with Number 273.1/UN27.22/HK.07.00/2024 and Universitas Sebelas Maret [Sebelas Maret University] with Number 371/UN27.22/PT.01.03/2025.

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    • Table 1. Public opinion on the amount of waste bank fees
    • Table 2. Distribution of respondent position
    • Table 3. Community perception of the benefits of participation in waste bank activities
    • Table 4. Logistic regression analysis
    • Conceptualization
      Ernoiz Antriyandarti, Muhammad Hendri Nuryadi, Nimas Suci Kusuma Melati
    • Funding acquisition
      Ernoiz Antriyandarti
    • Investigation
      Ernoiz Antriyandarti, Muhammad Hendri Nuryadi, Wahyu Noviansyah
    • Resources
      Ernoiz Antriyandarti, Muhammad Hendri Nuryadi
    • Supervision
      Ernoiz Antriyandarti
    • Validation
      Ernoiz Antriyandarti, Refa’ul Khairiyakh
    • Writing – original draft
      Ernoiz Antriyandarti, Muhammad Hendri Nuryadi, Wahyu Noviansyah, Refa’ul Khairiyakh, Nimas Suci Kusuma Melati
    • Writing – review & editing
      Ernoiz Antriyandarti, Muhammad Hendri Nuryadi, Wahyu Noviansyah, Refa’ul Khairiyakh, Nimas Suci Kusuma Melati
    • Data curation
      Muhammad Hendri Nuryadi
    • Visualization
      Muhammad Hendri Nuryadi, Wahyu Noviansyah, Refa’ul Khairiyakh
    • Formal Analysis
      Wahyu Noviansyah, Nimas Suci Kusuma Melati
    • Software
      Wahyu Noviansyah
    • Project administration
      Refa’ul Khairiyakh
    • Methodology
      Nimas Suci Kusuma Melati