Economic Potential from the Closure of Open Dumping Landfills
- STIC CEGIR
- Apr 2
- 1 min read
The Ministry of Environment (KLH) has identified a business potential worth IDR 127.5 trillion from the program to close 343 open dumping landfills. This initiative aims to promote a more integrated waste management system, provide environmental benefits, and create new economic opportunities. A study conducted by KLH in collaboration with the Ministry of Industry and Bappenas identified seven potential business sectors, including the recycling industry (IDR 42.3 trillion/year), compost and organic fertilizer production (IDR 18.7 trillion/year), and waste-to-energy conversion (IDR 26.5 trillion/year).
Additionally, opportunities exist in RDF production (IDR 13.8 trillion/year), urban mining systems for recovering valuable metals (IDR 9.7 trillion/year), the shared economy and digital waste applications (IDR7.2 trillion/year), as well as waste management consulting and technology services (IDR 9.3 trillion/year). The study also identified 12 sustainable business models for MSMEs, cooperatives, and startups, requiring initial investments ranging from IDR 250 million to IDR 5 billion, with an IRR projection of 18-27% over five years. This program is expected to be a turning point in implementing a circular economy and creating environmentally friendly job opportunities.
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