The waste banks set up by Khilda in 15 cities in Indonesia, work on a system of directly translating waste into credit. Each city has one central waste bank and about 500 small waste banks. Trash from the small waste banks is collected at the central waste bank where it is categorised into 110 types of waste, each of which has a particular resale value.
People from all over the city deposit their trash at these banks and get credit in return. This credit can either be encashed or be used to buy grocery or other supplies from local shops and supermarkets. Users of the waste bank are also given ATM cards that can be used at shopping malls.
The price paid to the users for their trash depends on the type of trash and level of segregation.
This banking system has been adopted and is being run by the government. The banks also have employees that segregate the trash if it is not segregated at source.
This segregated trash is sold to respective vendors for recycling. The salaries of the employees and money paid for bringing trash all comes from the income generated by selling the trash itself.
This system has been able to reduce the trash in landfill by upto 20% in some cities.
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