Waste4Change is building a circular economy in Indonesia

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Even the largest landfills in Indonesia are at (or near) capacity, and the government has set an ambitious target of 30% waste reduction by 2025. Waste4Change is one of the companies that wants to help by increasing recycling rates and enabling better waste management. , The startup, which currently handles more than 8,000 tonnes of waste, today announced that it has raised $5 million in Series A funding co-led by AC Ventures and PT Barito Mitra Investma.

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Other participants in the round include Basra Corporation, Paloma Capital, PT Delapan Satu Investa, Living Lab Ventures, SMDV and Urban Gateway Fund. Founded in 2014, Waste4Change has seen a CAGR of 55.1% from 2017, and is present in 21 Indonesian cities, where its services are currently used by approximately 100 B2B clients and over 3,500 households.

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Waste4Change was created by founder and CEO Mohamed Bijaxana Junerosano based on talks between PT Greenration Indonesia, an NGO, and waste management organization PT Bumi Lestari Bali (Ecobali) to create a company that aims to reduce the amount of waste ending up in landfills. does. Junerosano is an environmental engineer and has spent 16 years working in the solid waste sector.

Junerosano says a huge opportunity is created by Indonesia’s low recycling rates (about 11% to 12%), which means there is a lot of valuable reusable material that is left behind.

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“Waste reduction is a top priority, followed by material optimization and recycling which really supports the concept of a circular economy,” he told TechCrunch.

Waste4Change will use its new funding to expand and increase its waste management capacity to 100 tonnes per day over the next 18 months, with a goal of reaching over 2,000 tonnes per day over the next five years.

Waste4Change team

Junerosano said that Waste4Change differentiates from traditional waste management solutions by providing end-to-end solutions with a focus on sustainability and zero waste. Part of its strategy includes greater digital integration to automate the process of monitoring and recording waste management and its material recovery facilities.

“We see digital integration as a valuable tool for building a sustainable waste management ecosystem,” he said. “The goal is always to create harmony between the environment, the economy and the people.” Waste4Change’s digital integration strategy this year and beyond includes improving its waste travel reports and monitoring, which its customers receive after their trash is processed.

To use Waste4Change, customers can ask the pick-up team to collect or discard their pre-sorted trash. The company currently has 108 employees and 141 waste management operators, with plans to add 52 more people to its team and work with 300 informal waste collectors and SMEs. Informal garbage collectors include scavengers, garbage banks, garbage stalls and garbage collectors.

For recycling business partners including informal waste collectors, Waste4Change is building a platform with the company to help them sell and buy solid waste. The goal is to increase the traceability and accuracy of the waste management process. It is also working on a program called Send Your Waste, where consumers can send waste at the pick-up point of Waste4Change. An app tells them what kind of trash to send, where the nearest pickup point is and what kind of reward they can get.

Junerosano says informal waste collectors are selective about the material they collect, removing PET bottles, glass and cardboard. But this means that less desirable materials such as PP plastic, multilayer packaging and Styrofoam are often left behind, polluting the environment. To counter this, Waste4Change has launched a service called Waste Credit, which offers incentives to pick up certain materials, and also makes it easier for waste collectors to build this business.

“Considering the important role the informal sector plays in improving Indonesia’s recycling rate, we aim to create a waste recycling platform that will keep the system sustainable.” “We are more than happy to bring this to life with a joint venture or joint operation with other industry stakeholders including the informal sector and local reduce, reuse, recycle (3R) temporary waste storage sites.”

In a statement, Pandu Sajhir, founding partner of AC Ventures, said, “Waste4Change is a pioneer in providing end-to-end waste management solutions. With a demonstrated commitment to building a better future for Indonesia, part of the sustainability team The main focus is. The company is proving that it is product-market fit and has the ability to scale across the country.”



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