f jSr

«/ SANITAT10iSl'5 An Approach to Development of theInformal Sector : The Case ofGarbage Collectors in Bandung*By Hoson Poerbo, Daniel T. Sicular andVonny Supardi

ER SUPPLY A

3 4 3

8 5 A P

Garbage, the volume of which increase in propor-tion to the increase in the number of residents andto the increase in their income levels, is a problem,especially in large cities. Hasait Povrba, ChairmanPPLH-ITB, Daniel T. Sicular. a student at the Univer-sity of California, Berkeley, currently carrying outresearch for his Ph.D, at PPLH-ITB, and CCMUIV Sii-pardi. Special Assistant in the Architecture/Technic-al .Faculty at the Parahyangan University, Handling,describe the project conducted in Bandung; an at-tempt to find a solution, largely through increasingthe self-esteem of those involved in garbage collec-tion, and suggest various possibilities for reducingthe actual amount of garbage.

The case presented in the followingarticle is based upon the findings ofresearch carried out in Sukabumi, Ci-anjur and Bandung concerning thoseinvolved in garbage collecting. Theresearch referred to-was preceded by astudy of the structure and situation ofthe garbage collecting system in thesethree cities by the Centre for Environ-mental Studies Pusal PtmgcmbaflganLingkungan Hidup (PPLH) at the Ban-dung Institute of Technology (ITB) inconjuction with the Institute of SocialStudies, Netherlands, between 1980 and1982. Since the end of 1982 this workhas been continued by PPLH — ITB inconjunction with various ins t i tu t ionsfor the development .of communi ty re-sources ( the Ins t i tu te of Development

* Presented at the Workshop for Deve-lopment of the Informal Sector conductedby the Department of Manpower and tin-State Ministry of 1'opulation and the Environ-ment in Jakarta, 6 — 8 l-'e binary 1985.

Studies, the Young Resources Founda-tion, the Manunggal Jay a Cooperative,the UNISBA Da'wah Institute -and theBorromeus Foundation) and certaingovernment agencies (the CooperativeOffice, the Department of Social Wel-fare, DK3 and DK2) in an informalmanner, the purpose being to guide agroup of garbage collectors in Bandungas a 'field laboratory'.

The background to research into thesystem of garbage collection lies in theproblem of urban garbage,.especially inthe big cities where there are signs thatthis problem will not be overcome bythe methods now used, that is, bymethods wherein the approach to thehand l ing of garbage is t h a i of a servicef u n c t i o n performed by the local go-vernment . The l i t e ra tu re indicates thatgarbage represents a source of income(or groups of scavengers and t hus (onusan act ivi ty within the informal sectorof the c i ty . If this is so, can these

86 PRISMA

people not be regarded as a potentialthat will assist in the ut i l izat ion ofgarbage and thus reduce the citygovernment's burden in the handling ofurban waste?

The above question gives rise to anumber of other questions that requireinvestigation, such as: the identity ofthese garbage collectors, the nature ofthe discarded items that they utilize,their distribution throughout the cit\es,the marketing of the items that theycollect and the structure of their trade.

The following article presents apicture of the question of urban gar-bage as a contextual framework for astudy of the role of the garbage collec-tor. It is followed by a report on thefindings of research into the scavengingsystem in three cities. From thisresearch enough of . a picture wasobtained to permit selection of a groupof garbage collectors who could beinvolved in participation-level researchdirected towards development ofexisting potential to improve utilizationof garbage. The results of this partici-pation-level research have been usedas the basis for the development of adifferent approach to the handling ofgarbage wherein garbage is viewed asmaterial with economic value. Thearticle concludes with a report on theresults of a preliminary study into thepossibility of involving the informalsector in attempts to overcome thegarbage problem and at the same timeto create jobs that, with a very small in-vestment, bring in reasonably goodincomes.

The Problem of Urban WasteA study of the available literature

shows that the volume of garbageincreases in proportion to the increasein the number of urban residents and tothe increase in their income levels. In

TABl.K 1. Average level of waste productionper capita in developed and developingcountries.

City/Country

Average productionlevel (per person

per day)

A. Developing countries:Jakarta, IndonesiaBandung, IndonesiaSurabaya, IndonesiaSingaporeCalcutta, IndiaCairo, Hgypt

B. Developed countries:New York, U.S.A.Hamburg, West

GermanyRome, Italy

0.65 kg0.50kg (0.82 kg)'0.52 kg0.87 kg0.51kg0.50 kg

1.80kg

0.85 kg0.69 kg

SOURCE: Cointreau 1982*) BUDP 1984, estimated average of all

kinds of rubbish.

Indonesia the level of waste productionper family is still relatively low butthere is potential for an 'explosion' inquantity if there is a continuousincrease in incomes within the urbancommunity. Table 1 presents a com-parison of the production of garbageper family per day in certain selectedcities.

The capacity of the local governmentsin large cities to collect and dispose ofgarbage has been estimated at aroundonly 60 per cent of the quantityproduced each day. On the whole thesegovernments experience di f f icul ty inproviding a garbage service because oftrouble in collecting the garbage-servicefee, the location of many houses which,because of the density of settlement,cannot be reached by garbage vehicles,the number of families that cannotafford to pay for th is service, the highcost of investment in and maintenanceof equipment used to transport anddispose of garbage and also the

DEVELOPMENT OF THE INFORMAL SECTOR 87

DIAGRAM 1. 'I"he system for the handling of urban garbage

GARBAGESOURCE

COLLECTION COLLECTION FINALPOINT I POINT II DISPOSAL

PLACE

Industry

Households

Shopping andtrade centres

Markets

Roads andgardens

Other sources

THE SYSTEM OF GARBAGE SCAVENGING INTHE INFORMAL URBAN SECTOR IN INDONESIA

difficulty of obtaining men willing towork as garbagemen. The existingsystem by which garbage is now handl-ed is shown in a simple way in theabove diagram (Diagram 1).

Within the above system there is a'sub-system' of garbage scavenging withan already complex structure. It hasbeen estimated that from the point ofview of volume its contribution toa reduction of the waste that has to bedisposed of is not very big, beingapproximately 10 — 20 percent. Thiscan be readily understood since thescavenger can utilize only those kindsof waste that have a recycling value,sucli as paper, plastic, glass and metal.The greater part of the garbage of thecities consists of organic materials. Thefollowing table (Table 2) gives detailsof the composition of garbage in twocities.

TABLE 2. A comparison of the physical com-position of urban waste in Brooklyn andBandung (% by weight).

Type of material Brooklyn, Bandung*New York

PaperGlassMetalsPlastic and rubberTextilesBonesOther materials

Total of non-foodmaterialsVegetables and materialsthat can decay

35**9

1310444

78

22

9.70.31.34.82.50.76.1

25.4

74.6

Total 100 100.0

* Figures for Bandung refer only to domesticwaste.

** All figures in this column have been round-ed.

Source: Cointreau 1982 and BUDP 1984.

88 PRISM A

DIAGRAM 2. The system of urban garbage scavenging

Industry andconsumers

Middlemen

Groups of10-100 persons

The System of Urban GarbageCollection

Studies made of the system of gar-bage scavenging in various parts of theworld reveal similarities in structure. Inbroad outline this can be illustrated asin the above: diagram, (Diagram 2).

Studies undertaken in Sukabumi,Cianjur and Bandung indicate that thisgeneral picture is valid even for smallercities like Sukabumi and Cianjur.

The anthropological research carriedout by the PPLH—ITB in conjunction-with ISS provides a more detailedpicture of the characteristics of thissystem of garbage scavenging. To obtainthis information the techniques ofparticipant observation and open in-terview were adopted. In brief thefindings were as follows :— For most of the scavengers this job

represented the final alternative.— The scavengers regarded themselves

not as homeless loiterers (gelandang-an) but as persons employed in le-gitimate work.

— None originated from the city where-in they were working as scavengers.

— Places of origin were widely distri-buted and there was no fixed patternin this matter.

— On the whole educational back-ground was of a low level but therewere one or two who had completedSenior High School.

— Many were originally landless agricul-

tural labourers.— On the whole their attitude was one

of 'easy living' in the sense that whenthey had acquired a certain amountof money they gave up working untiltheir money was exhausted and onlythen did they resume their jobs.

— Their income was between Rp45,000 and Rp. 75,000 per month in1982.

— They had a strong sense of inferiori-ty and were suspicious of 'outsiders'because of the times they had expe-rienced eviction and the arbitrarytreatment to which they had beensubjected.

— There was strong competition amongthem to maintain their own individu-al existence.

— Many experienced illness because oftheir dirty work and environment.

— Their relationship with the marketfor the items that they collectedshowed a high degree of dependence.Price manipulations by middlemenand traders (bander) often pushedthe unorganised scavengers into acorner.

— The basic structure of the trade initems obtained by scavengers is asfollows:

The middlemen arc o f ten membersof a group of scavengers, whom they'dominate'.

90 PRISMA

dcrtakings, especially the marketingaspect, so that they would not fallvictim to drastic fluctuations. Forthis reason there was need for acooperative.Among the researchers there was

some doubt about whether the regionalgovernment would be willing to alterthose policies that did not providesupport for the existence of thescavengers.

In addition, there was also somedoubt as to whether a cooperativecould be made to grow since it wouldbe in direct conflict with existingstructural interests (the middlemen andtraders). The practical question of howto select and involve a group so as tobegin the process of development of acooperative also arose. It was apparentto all that this undertaking would haveto commence with a very small unitand that it would not be able to take inthe whole system.

Since it proved impossible to over-come these doubts among the resear-chers, it was decided to proceedwithout any hypotheses or desires onthe part of the researchers. The conceptof participation-level research wasaccepted as an open-ended process inexpansion of the target group's capa-city to 'remove the shackles bindingthem to poverty' through a process ofinteraction with the researcher, a pro-cess that was to be a learning processfor all involved. This had to be donethrough continuous visits and evalua-tion which of its very nature wouldinvolve participation by the researcherand the target group.

The first step was to report to theBAPPEDA (Budan 1'cngcmbangan Pcm-bangunan Dacrah, Regional Develop-ment Body), office in the Municipalityof Bandung about the wish to carry outparticipation-level research and to ob-tain approval. The second step was to

select a target group that met certaincriteria which had been established ona basis of the objectives drawn from re-search results. The third step was toplace a participant observer in the se-lected group to identify the most urgentneeds felt by the group so that theseneeds could be used as the point ofentry to involve the target group. Afterthat the process was an open-endedone.

From the above ideas agreement wasreached upon action to carry out thepaticipation-level research. BAPPEDAwas informed; a target group was cho-sen in a location close to the PPLH-ITBso as to facilitate communication; the

•

objective of the undertaking, as far asthe PPLH—ITB was concerned, was toobtain empirical data on a micro scaleconcerning the development of a targetgroup in handling garbage and itsdynamics; cooperation with the Insti-tute of Development Studies (LSP —Lembaga Studi Pcmbangunan) wasundertaken to obtain an experiencedresearcher as a participant observer, andfinally the research began at the end of1981.

The participant observer who wasseconded for the purpose was a womanwho was well qualified in Social Scienceand who had already had experience inJakarta. She began by introducing her-self to the target group in an informalfashion until her presence was accept-ed. After that she purchased a placeto live and stayed with the targetgroup for three months. In this way shewas able to report on the characteristicsof the target group and to involve thegroup in effor ts to i d e n t i f y the mostpressing needs, the so lu t ion ol whichcould be helped by the PPLH-ITB. Asit turned out, this led to a wish on thepart of seven couples who had beenl iv ing together us men and wives getmarried, something that had not

DEVELOPMENT OK THE I N F O R M A L SECTOR 89

— The traders arc persons from outsidethe environment oi the scavengersand can be described as well-to-do.

— Many of the markets for the itemsthat are collected are located outsidethe cities (Jakarta, Cirebon).

— The pattern of distribution of groupsof scavengers within a city follows'service areas', use being made ofpieces of land which they occupyillegally as squatters (along trainlines, alleys intended as fire-breaks,the banks of rivers and unoccupiedland owned by the State).

— For this last reason regional govern-ments usually adopt a harsh attitudetowards scavengers and regard themas gelandangan who are associatedwith crime, prostitution and pollu-tion of the city.

This brief picture of the life ofscavengers would appear to be equallyvalid for the cities of Indonesia and forthose of other developing countries. Itis hard to estimate the number ofpersons employed as scavengers but inBandung and Cimahi together there areapproximately 1,000 families, whichmeans 2,500 persons if dependants areincluded. This relatively small numberis perhaps a consequence of localgovernment policies which are repressi-ve in nature, as far as scavengers areconcerned. In certain other countriesthe opposite policy is adopted. Scaven-gers arc given a 'right' or franchise tocollect garbage items in certain de-signated places. This is done, forexample, in Manila, Mexico City andother places where the 'right' can begiven to a group if that group pays acertain sum of money to the ci tygovernment .

Participation-level Research with aGroup of Garbage Scavengers inBandung

Participation-level research is an

aspect ol Appl ied Social Science. As amethod it is s t i l l controversial since itsepistemological basis is somewhatunclear. Nevertheless, the PPLH—ITBwas prepared to at tempt it, a l ter con-sultation with an expert provided byISS. In brief , participation-levelresearch formed the means by which atarget group could be involved as thesubject in a study of its own existencewithin its own environment (social,economic, political and physical).Through this method the group ex-perienced a social learning process thatled them towards the capacity to liftthemselves to a better standard ofliving. This was done through develop-ment of the structures supporting theiractivities in all fields of life, throughimprovement of their capacity to iden-tify the problems hindering their deve-lopment and to find solutions to thoseproblems through expansion of theirknowledge and skills. This process canalso be described as one of awareness orof freeing themselves from the shacklesthat had curbed their progress. In thisprocess the researcher (with or withoutthe function of a go-between) took therole of motivator, facilitator and cata-lyst.

Before the participation-level re-search was undertaken, a discussion washeld among the researchers. Researchfindings concerning the garbage collec-tors indicated that there was potentialfor increasing their role in the utiliza-tion of waste materials through recycl-ing or the making of compost.But t h i s would require certainmeasures:a) Creation of a climate t h a t would

provide more guarantee ol the i r con-t inued existence, in terms of morep o s i t i v e policies on the part of theu - y u u i a l go\ eminen t ;

b) Creation of institutions capable ofassisting them to improve their un-

92 PRISM A

problems associated wi th waste disposalin large cities like Jakarta, Surabaya.Bandung and Medan as well as in othersmaller cities. The various levels ofgovernment responsible for administra-tion of the big cities have experimentedwith various techniques and technologyfor the handling of waste, importedfrom abroad via the foreign consultantswho have been brought to Indonesia inconnection with loans from the WorldBank and ADB (Asian DevelopmentBank).

Much progress has been achieved butmany problems have also been 'import-ed' from overseas, such as the extraor-dinary increase in the investment re-quired for the handling of waste ingeneral, the increased need for disposallocations which are becoming nrogressi-vely more distant and more scarce,expensive equipment for the transport-ation and processing of waste and thecost of the supporting system. All ofthis requires greater subsidies. Even inthe countries from which waste-pro-cessing technology originates people arebeginning to seek alternatives toexisting methods in the interests ofreducing costs for waste disposal. Thishas led to a new approach, namelythe system known as integrated mate-rials' recovery (IMR).

Stated briefly, IMR is a waste-handling strategy wherein at each stagein the handling of waste materials(storage, collection, transport, pro-cessing and final disposal) the aim isnot to discard or destroy waste butrather to re-ut i l ize materials that arestill of value. In a system of this kindeach step actually improves rather thanobstructs the capacity of the system toproduce goods that can be marketed.This synthesis o f f e r s the possibi l i ty ofusing more simple technology andcheaper investments than the present

system requires because of its decentra-lized nature.

The main advantages of IMR are asfollows:a) The sale of goods made from waste

materials can subsidize and perhapseven pay for the whole waste-handl-ing system.

b) All materials that can be marketedare taken from the waste disposalroute. A reduction of 50 to 90 percent in the weight and volume of thewaste that requires a disposal site canbe expected, which means a drop intransport costs, the need for spacefor disposal and maintenance costsfor equipment.

c) The IMR system is labour-intensivebecause handling is extremely inten-sive. But the cost of workers can befinanced from the sale of the goodsmade from utilized waste, whichmeans an increase in employmentwithout any increase in expenditure.

d) Goods made from waste materialssupport the network of service andmanufacturing/processing industries,both large and small, such as indus-tries that produce small cookingstoves, the paper industry and largesteel industries.

e) Secondary materials taken from gar-bage can replace materials that aremined or imported such as iron, alu-minium, glass and the like. This has apositive effect upon the economicalutilization of non-renewable resour-ces, upon the environment and uponforeign exchange.

f) Since the energy required to repro-cess secondary materials of this kindis only a small fraction of the energyneeded to process pure , newly ex-tracted materials, there wi l l be adisguised bene f i t in the fo rm ofeconomy in the use ol energy.If there are limitations in Indonesia

upon the use of waste—disposal techno-

DEVELOPMENT OF THE INFORMAL SECTOR 91

hitherto been possible as they did nothave identity cards (KTP, Kartu TandaPenduduk), or finance. The marriageswere conducted with the assistanceof the PPLH - ITB and this too be-came a point of entry for involve-ment in the community. The confi-dence that grew within the target grouplater resulted in a series of other activi-ties. The community was encouraged tomake a 'school' for children in theafternoon hours and this was latermanaged by the Young ResourcesFoundation. The existing prayer-housewas enlarged and made active with helpfrom the UNISBA Da'wah Institute.With the presence of these two ele-ments a communication forum wasestablished through meetings concern-ing school guidance, through religiouscontacts and through discussions of a'neutral' nature, until the whole com-munity was involved in informal, opendiscussions. The whole process tookthree months.

It was only after that the PPLH-ITBdared to put forward the concept offorming a cooperative, a process thatcontained many conflicts of-interestsbecause of the existence of a middle-man who had his own associates in thetarget group. Material competitionbetween the two led to difficulty inobtaining agreement about the forma-tion of a cooperative. In the end thecooperative was established in a si-tuation of some slight compulsion. Theperson chosen as chairman was thefield worker from the LSP, (Lemba-ga Studi Pembangunan), .who wasexpected to be the mediator in theconflicts that continued to occur. Thedeputy chairman was the middleman(Mr. A), who was regarded as the oldestfigure in the group, while the treasurerwas Mrs. B, who was also a middlemanwithin the group and who was in com-petition with Mr. A. The cooperative

was formed at the beginning of 1983.became a legal entity in the middle of1983 and was registered with theCooperatives Office. Guidance of themanagers and members was donethrough training which was providedby the LSP and the CooperativesOffice. It was only at the end of 1984,however, that the clash of interestscould be settled.

The participation-level research hadbeen carried out since 1982 withoutany special budget from the PPLH—ITB, using only one full-time fieldworker and several other researchers formonitoring purposes.

Experience with the target group inBandung, supported by continuousvisits and evaluation, convinced thePPLH—ITB that the system of garbagescavenging offers future prospects for achange in the handling of urban wastefrom the present service function to aproduction function of economicproportions. This shift can dramaticallyreduce investment and handling costsfor the disposal of waste; at the sametime it can create employment in theinformal sector of the cities on a fairlylarge scale and at a relatively low cost,providing jobs that bring in an incomeequal to or greater than the incomesearned by those with the same level ofskills in the modern sector.

The characteristics of the group atthe beginning of the participation-levelresearch, the development process thatthe group experienced and the activitiesand results achieved can be seen inAppendix I.

Towards the Idea of Waste IndustryZones : A Conceptual Approach

During the period of the presentNew Order, Indonesia has taken im-portant steps in the handling of urbangarbage in the context of overcoming

94 MUSMA

660 mi l l ion per month. I t ' t h i s could becarried out and the results sold w i thou tany investment, it would provide theopportunity for about 8,250 persons tooh tain an income of Rp. 80.000 perperson per month (prices are basedupon those that apply at the level ofthe scavengers). With an investment ofRp. 3.4 bi l l ion the Municipal Govern-ment could buy land and equipmentfor the utilization of garbage by deve-loping a processing system in the formof scattered production units (a decen-tralized system) capable of usingaround 80 per cent of urban waste.This would yield a gross income ofRp. 20 million per day, would providework for 3,000 scavengers and wouldgive a net profit of around Rp. 9.9 mil-lion per day or Rp. 3.5 billion per year.These funds could be used to improveother sections of the waste-processingsystem and to develop secondary pro-cessing and manufacturing industriesthat could provide jobs for an addition-al 5,000 persons with an average sa-lary of Rp. 80,000 per person permonth. This would mean an investmentof approximately Rp. 1.2 million for aworker in situ and if outside workersare included in calculations, then theinvestment could be as low as Rp.425,000 per person. This would alsoimply a return of more than 100 percent per year upon the original invest-ment. These figures are most impressiveif a comparison is made with industrialinvestment in the modern sector. Perworker investment in industrial estatesaverages between Rp. 5 mi l l ion andRp. 10 mil l ion in medium and some-what smal le r i n d u s t r i e s and t h e averagelevel of incomes is probably about thesame as in the waste-disposal Held.

A p a n f rom t h i - i n i t i a l i n v e s t m e n t t h eIMR system r e a l l y r e q u i r e s on ly a m i n i -mum involvement on the part ot the-Regional Government lor decent ra l iza-

t i o n is already easy because of theex is t ing co l l ec t ion system at RW andRT levels , l l would be necessary only toadd garbage-processing places at thenext higher adminis t rat ive level ( thekclurahun, village or ward administrativeuni t ) . In this way the transportationof garbage over long distances andthe need for disposal sites would bealmost entirely done away with. TheIMR system has the potential to econo-mize about Rp. 5 billion in projectcosts if it is applied in the Municipalityof Bandung and perhaps another Rp. 1billion in annual project budgets. Theactivities of the DK3 organizationcould then be shifted primarily tocleaning of the streets, the replanting oftrees and beautification of the city.

Scavengers could organize themselvesin cooperatives that controlled andhandled Waste Industry Zones at thekelurahan level and then with thesezones as the base they could furtherexpand their economic activities inrelated fields and in other undertakings.The following diagram (Diagram 3)presents a picture of the potential roleof Waste Industry Zones in the re-utilization of waste materials and inthe reduction of transportation costsfor their disposal.

Conclusions and Recomendations5.1. From the case described above,

the following conclusions can bedrawn:a) A review should be made of the

present system of handling ur-ban waste wherein the approachto disposal ot garbage is tha t ofa community service;

b) The IMR system is an alternativew i t h great potential for the sol-s i n g ol the garbage p rob lem;

c) In Indonesia the IMR systemcan involve garbage scavengers

DEVELOPMENT OF THE INFORMAL SECTOR 93

logy from advanced countries such ascompost factories, incinerators and sa-nitary land- t i l l , can the IMR system

.replace this technology? Since IMRrepresents a strategy of waste manage-ment that is not associated with anygiven kind of technology, the answer tothis question lies not in the possibilityof acceptance or use of a technologicalgroup but rather in the possibility ofapplying a certain idea or philosophy tothe existing situation and to theexisting system of dealing with waste.

In the Indonesian context there areseveral points that should be put for-ward as arguments for the acceptanceof IMR as an alternative to the existingsystem of waste management:a) The system of re-utilization of waste

materials is a traditional one, alreadycarried, out by scavengers in a profi-table way.

b)The physical qualities of garbage inthe cities of Indonesia suggest thatthe 'import' of waste-handling tech-nology from industrialized countriesis ineffective and inappropriate butat the same time this means that theutilization of materials obtainedfrom garbage can be feasible. Thesephysical qualities include the follow-ing:1) Garbage in Indonesia has a far

higher density than in the deve-loped countries, which means thatcompaction-based systems are un-suitable and not very effective.

2) The garbage contains a lot of or-ganic materials and much water,which means that incinerators arenot suitable. It would be better touse such garbage for the produc-tion of compost.

3) Even though the quantity or per-centage of high-value non-organicmaterial is low by comparisonwith the situation in developedcountries, cheaper labour in In-

donesia makes the use of thesematerials not on ly leasible butalso very prof i table ,

c) The present system of garbage-handling in most Indonesian cities isfar more decentralized than it is inindustrialized countries. For exam-ple, garbage collection is usuallyhandled by RWs and RTs (localneighbourhood associations). Decen-tralization of this kind means thatthe Regional Government's responsi-bi l i ty for the most expensive stage inthe handling of waste can be keptlow. However, this also means thatthe task of collecting fees from thegeneral public to pay for the systemis becoming increasingly difficult.For that reason, the budget is usuallyobtained from the Central Govern-ment.

Hence the use of advanced technolo-gy such as incinerators, compactors andbalers is neither effective nor efficientbecause they are designed for garbagedisposal in advanced countries whereconditions are different and thereforeare not suitable in the Indonesian si-tuation at the present time.

The possibilities for devclopmer.. ofthe scavenging system in the informalsector can be illustrated by a conceptlike IMR, which is based upon empiri-cal figures obtained from the researchundertaken by the PPLH—ITB with atarget group in Bandung. For example,if the Munic ipa l i ty of Bandung madean investment in urban-waste handlingon a basis of the decentralized IMRsystem and not the disposal system incommon use at the present time, theway would be open lor scavengers toenter into more formal garbage collec-tion activities.

I l has beer1, e s t i m a t e d t h a t the to ta !value ol all Bandung garbage couldreach Rp. 20 million per day or Rp.

DEVELOPMENT OF THE INFORMAL SECTOR 95

DIAGRAM 3. The System of Waste Industry Zones at the Kelurahan Level (Figures for unitsof garbage are preliminary estimates).

SS = units of garbage SOURCE OF URBAN GARBAGE100 SS

System of WasteIndustry Zones

GARBAGESEPARATION I

GARBAGESEPARATION II

96 PRISMA

in a successful manner and fourobjectives can be met at thesame time:a. A reduction in the burden of

garbage disposal• b. The creation of jobs in the in-

formal sector with a relative-ly low investment.

c. A reduction in the investmentrequirements now borne bythe government in the pre-sent system of garbage dispo-sal and maintenance of thesystem.

d. A decentralized system of gar-bage processing at the kclu-rahan level through the IMRapproach, which involvesWaste Industry Zones ownedby cooperatives of garbagescavengers.

5.2 Measures that are recommendedtake in:a) Development of a Waste Indus-,

try Zone as an urban pilot pro-ject that has already been pre-pared.

b) Careful monitoring and evalua-tion in order to obtain feedbackbefore further steps are taken.

c) Involvement of the Regional Go-vernment, universities and com-munity-resource institutions inthe planning and implementa-tion of the pilot project.

d) The provision of an estimatedRp. 35 million as the initial ca-pital that will later be used in acircular fashion for one pilotproject.

5.3 Some closing remarks :a) It is f u l l y appreciated that there

are many constraints whichmake it impossible to apply allaspects of the above concept atone and the same time. Theseconstraints include the difficul-ty of acquiring land, marketing

of products and the politicalclimate which provides l i t t le -support for the presence of gar-bage scavengers in the mkist olthe urban community on anofficial basis. For that reasonapplication of the IMR concepland the idea of Waste IndustryZones must be regarded as along-term process (5 — 10years). The pilot project is ameans by which to learn. It canthen be expanded in keepingwith capacities and opportuni-ties but the basic philosophy ofhandling urban waste in a sys-tem that uses scavengers as itsbackbone must be firmly main-tained,

b) As a method to develop anyproject, especially in a situationwhere there is no previous experience, where the situation isof its very nature always spedfie (as is the case with the informal sector) and where planningmust be based upon information from the field, the expcrience acquired through a cas<study provides guide-lines foithe planning of further steps i i <the expansion of a project < » lthis kind. The methods normally adopted in a feasibility studycannot be used because they a i «too assumptive and determini"tic. In matters relating to lh 'handling of the informal sect"1

the development process is i"nature open and cannot be anticipatcd until new structures "'a permanent type have b r < "established. The procedure t l i • ' 'is recommended from case s i ' 'dies of scavengers is as fo l low 1

(see d iagram) .A number of points should be put I" ' "ward so that the procedure describ' '*

DEVELOPMENT OF THE I N F O R M A L SECTOR 97

Exploratorystudy of the sys-tem

1

Expansion of thesystem as a con-tinuous process

In-depth study ofstrategic aspects

Participation-levelresearch with aselected group

3

Implementation with moni-toring and evaluation as well -t-as projections for expansionof the system

Reconstructionof the develop-ment process

4

Plans for a pilotproject

5

above can be carried out:a) A political climate that accepts the

presence of scavengers must becreated;

b)The system of.financing must be fle-xible and capable of adaptation tounexpected developments;

c) The expansion must be partici-pative and based upon interactionbetween the various parties involvedat each stage;

d) There is need for an intermediarywho can function in relationshipswith the target group as a motivator,facilitator and catalyst. This functionshould be undertaken by a commu-nity-resources institution.

e) The whole process represents a syn-thesis of 'top-down' and 'bottom-up'development.

Apendix ISome Brief Details of the Target Groupin Bandung:

A. Community Profile:— At the end of 1981: about 100

persons or 40 families.— At the end of 1984: about 150

persons or 50 families.— Place of origin: West Java, Central

Java, East Java, Madura.— Most family heads formerly con-

victed criminals.— Low levels of educa t ion (usual ly

elementary school).— Area of land about 2 ha. initially

covered in bushes up to 2.5 metresin height with dwelling-placesmade from cardboard among thebushes.

B. Results as of-December 1984:1.18 couples officially married.2. Growth of a school:

— From an irregular play-groupinto 3 elementary-level classes.

— On the whole the marks of chil-dren attending a private elemen-tary school (outside) are aboveclass averages.

3. Expansion of the prayer-house:— From infrequent use to intensi-

ve, regular usage.— Many speakers from outside

(UNISBA).4. Cooperative:

— From 40 members in 1982/1983 to 75 members at the endof December.

— From deposits of Rp. 200,000in the middle of 1982 to Rp.1.3 million at the end of De-cember 1984.

— Status: Official as a legal body.5. Activities:

— An increase in recycling.— Rabbits: from 14 (J983) to

. more than 100 at present, with28 donated to Ciamis.

— Integrated agriculture.— Fisheries.— Compost production.— Nursery for seedling: 3000 pc-

98 PRISMA

TABLE 3. Potential value of the waste produced daily in the Municipality ofRandung.*

Population of Bandung :Daily production :Total production :

1,500,0000.82 kg per person1,230 tons per day

Composition

Organic /compostableother organic ****papermetalglasstextilesplastic/rubberbonesother materials

Weight

62.89.99.11.1

91.3

10.15

4.6

Output(in kgper day)

193,110***121,770111,330

13,53011,07015,990

124,2306,150

56,580

Marketvalue

(in Rp.per kg)"

2017,1.911.28.7-6.75

14.9—

Dailyvalue

(in Rp.per day)

3,862,2002,082,2671,007,370

151,53696,309—

838,55291,635

—

SOURCE : BUDP; PPLH-ITBNOTE :

***

The value of waste depends upon its composition, which canalter dynamically.These prices have been taken from the lowest level of the sca-venging system in the target group in Bandung.This figure represents organic waste after it has been processedinto compost; actual daily production is 922,800 kg; the com-post produced from this is 276,840 kg per day (25% of totalweight).Other organic includes fruit tree seeds and material suitable forconsumption by animals.

rennials sold to Pagerwangi andRp. 850,000 of mango slipssold to Garut.

— Family planning, health/nutri-tion and the family-welfare pro-gram (PKK, Pcndidikan Kt'sc-jahteraan Kcluarga, Family Wel-fare Education).

— A VVC demonstration projectfrom UNDP.

— An excellent securi ty system.6. The whole undertaking is ready to

be transferred from the old illegalsite to a new location il there is aplace of which the local govern-ment approves.

Apendix IIFinancial calculations for the develop-ment of a Waste Industry Zone in anurban helurahan (a preliminary con-cept).The Zone has been designed to processapproximately 1 7 tons of waste per dayand to serve approximately 20,000 —25,000 residents (a small hulurahun),shopping centres and a market. It con-sists of one compost-processor andplaces for the recycling of inorganicmaterials. Estimated costs and yieldsare given for each unit of production(compost and recycling separately).

DEVELOPMENT OF THE INFORMAL SECTOR 99

Compost processor(capacity 12.5 tons per day)

A. Capital costsLand 2,500 m2 @ Rp. 5,000 per m2 Rp.Barracks 500 m2 @ Rp. 10,000 per m: ± Rp.Facilities Rp.Machinery and other equipment Rp.Reserve fund Rp.

Total

B. Annual production costsDepreciationWorkers (22 persons @ Rp. 80,000)UtilitiesMaintenance and improvements

Total

C. Production costsBased on 360_days per year

D. Investment per worker

E. Performanceinput per day 12.5 tonsoutput per day 3.2 tonsdiscarded waste 2.5 tons (20 % of input)

F. Income per day3.1 tons® Rp. 20 per kg.0.3 ton @ Rp. 150 per kg.(special)

. Gross daily income

G. Net daily profit

H. Net annual profi t

Processing of materials/inorganic(capacity 4.5 tons per day)A. Capital costs

I .nu l '_>25 m2 @ Rp. 5,000 per m 2 Rp.Bana. ks 1 50 m2 @ Rp. 1 0,000 per m2 Rp.Faci l i t ies Rp.Machinery and other equipment Ro.Reserve l u n c i Rp.

12. 5 million5.0 „7.0 „5.02.0 „

Rp. 31.5 million

Rp. 1.0 millionRp. 21.1 „Rp. 3.0Rp. 2.0 „

Rp. 27.1 million

Rp. 75,300.00

Rp. 1.43 million

Rp. 62,000.00Rp. 15,000.00

Rp. 77,000.00

Rp. 1,700.00Rp.612,000.00

1.1 mi l l ion1.5 „2.0 „8.0 „1.0 „

Total Rp. 13.6

00 PRISMA

B. Annual production costsDepreciation Rp. 1.1 millionWorkers (18 persons @ Rp. 80,000/month) Rp. 17.2Util i t ies Rp. 2.0Maintenance and improvements Rp. 2.0 ,,

C.D.E.

G.H.

Production costs per day

Investment per worker

Performanceinput per day 4.5 tonsoutput per day 3.5 tonsdiscarded waste 1.0 ton (25 % of input)

Gross income per day3.5 tons@Rp. 55,000

Net daily profit

Net annual profit

Rp. 21.8

Rp. 60,500Rp. 0.75 million

Rp. 192,500.00

Rp. 130,000.00Rp. 46.8 million

Total of (1) and (2)A. Investment

Annual production costsAnnual profit

B. Investment in workersnumber of workers

Rp. 45.1 millionRp. 48.9 „Rp. 47.4RP. 1.12 „

40 persons

Example for Bandung

A. Number of Zones required (1.5 million people) = 75Profit from 75 Zones per year = Rp. 3.4 billionNumber of workers 3,000 personsInvestment per worker Rp. 1.12 millionAmount of land 20.4 ha.

B.C.

D.

G.H.

Performance

Daily input 1,275 tonsDaily output 502.5 tonsDaily waste 2G2.5 tonsWaste as percentage of input = 20%Daily gross income Rp.20.2 mil l ionN o t da i ly p i . j l ' i t Rp . <J.<J mil l ionNet annual p rof i t Rp. 3.55 billionNet annual p r o f i t as a percentage of investment 100 %