An Analysis of Waste Bank Unit Models in Bandung Using the Business Model Canvas

Abstract

Waste remains a significant issue in Bandung, with production reaching 1,594.18 tons per day in 2022. Community-based waste management through waste banks can reduce the waste sent to the final disposal site by up to 75%. Currently, the available waste banks only meet 27% of the demand, managing only 5% of the total waste, indicating a need for more waste banks. With a waste bank in each RW (community unit) in Bandung, the total waste managed daily could reach 56% of total waste production. This study aims to develop a business model for waste banks using the Business Model Canvas to facilitate the establishment of new waste banks in Bandung. The Business Model Canvas analysis was conducted through field observations and interviews with the chairpersons and active managers of existing waste banks. The study also includes a financial feasibility analysis for waste banks. The research results provide a comprehensive framework covering eleven business model blocks, including customer segments, value propositions, distribution channels, customer relationships, revenue streams, key resources, key activities, key partnerships, cost structure, social impact, and environmental impact. The results also indicate that waste bank businesses are financially viable, with an NPV of Rp40.060.028,25; an IRR of 34%; a BCR of 1.69; and a payback period of 2.29 years.