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The report analyzes organic waste management models in Indonesia and Brazil, finding that decentralized, community-based, and household-level systems often offer greater cost-efficiency (lower Levelized Cost of Waste Management) than large-scale centralized projects. While private operators achieve economies of scale, community groups face severe financial pressure due to low operational margins and reliance on short-lived assets. The study recommends holistic policy approaches, legal recognition for informal workers, and the integration of co-benefits like job creation and methane reduction to attract more diverse funding, such as green bonds and carbon credits.

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  • Public budget allocations for waste management are generally low in both countries, with Brazil showing higher allocation rates (1.9% to 5.1% of city/district budgets) compared to Indonesia (0.3% to 2.4% across five sample cities).
  • Decentralized models, including community groups in Indonesia and waste picker cooperatives and household composting in Brazil, demonstrate higher potential for cost efficiency. In Brazil, household composting achieved the lowest Levelized Cost of Waste Management (LCOW) at USD 1.69-19.12/ton.
  • Labor costs are the dominant component of operational expenses for all operators in both countries, ranging from 74% to 98% in Indonesia and 48% to 90% in Brazil, indicating the labor-intensive nature of the sector.
  • Community groups in Indonesia face significant financial vulnerability, with severe operating deficits (margins of -49% to -628%) and a complex capital structure relying on private entities (49%), government (48%), and CSR/philanthropy (3%).
  • Fixed assets, such as land acquisition, represent the largest portion of total asset value (89% in relevant Indonesian cases and 58% in Brazil), acting as a significant entry barrier for industrial players but less so for household composting.
  • Private operators in Brazil exhibit the highest operational costs (USD 92.1-514.5/ton) but also the highest revenue generation (USD 193-604/ton), whereas waste picker cooperatives have lower operational costs (USD 15.9-22.1/ton) and lower revenues (USD 24-32/ton).
  • Organic waste management provides significant co-benefits beyond waste reduction, including job creation, food security through urban agriculture (using BSF larvae or compost), and improved air and water quality via reduced methane and CO2 emissions.
  • There is a stark imbalance in methane abatement finance; in 2021/22, 94% (USD 4.08 billion) of funding was allocated to Waste-to-Energy (WtE) incinerators, while only 1% (USD 20 million) went to organic waste management.

Cite the original document

APA
Yusuf, B., Bimo, R., Gembira, H., Nurfitriani, F., & Purnomo, I. (2025). Analisis Finansial Model Bisnis Pengelolaan Sampah. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Bahasa-Indonesia-Analisis-Finansial-Model-Bisnis-Pengelolaan-Sampah.pdf
Chicago
Yusuf, Berliana, Ravi Bimo, Harry Gembira, Fatihatul Nurfitriani, and Ira Purnomo. Analisis Finansial Model Bisnis Pengelolaan Sampah. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Bahasa-Indonesia-Analisis-Finansial-Model-Bisnis-Pengelolaan-Sampah.pdf.
Wikipedia
{{cite report |last1=Yusuf |first1=Berliana |last2=Bimo |first2=Ravi |last3=Gembira |first3=Harry |last4=Nurfitriani |first4=Fatihatul |last5=Purnomo |first5=Ira |title=Analisis Finansial Model Bisnis Pengelolaan Sampah |publisher=Climate Policy Initiative |date=June 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Bahasa-Indonesia-Analisis-Finansial-Model-Bisnis-Pengelolaan-Sampah.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{yusuf2025analisis, author = {Yusuf, Berliana and Bimo, Ravi and Gembira, Harry and Nurfitriani, Fatihatul and Purnomo, Ira}, title = {{Analisis Finansial Model Bisnis Pengelolaan Sampah}}, institution = {Climate Policy Initiative}, year = {2025}, month = jun, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/06/Bahasa-Indonesia-Analisis-Finansial-Model-Bisnis-Pengelolaan-Sampah.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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