This article was machine-drafted from the sources cited in its footnotes. It is not the official text of any law or court decision, and it is not legal advice (how articles are written).
Waste banks in IndonesiaConcept
FieldSolid waste management
JurisdictionIndonesia
Principal instrumentsPermen LHK 14/2021, PP 27/2020, PP 81/2012

Waste banks in Indonesia (bank sampah) are facilities for managing household and similar waste on the reduce-reuse-recycle principle, which Indonesian regulation also treats as a means of education, behaviour change and the circular economy. They may be formed and run by communities, businesses or regional governments. The current rules are set by a 2021 environment ministry regulation on waste management at waste banks, Permen LHK 14/2021, which distinguishes neighbourhood unit banks from district-level parent banks.[1] Waste banks are a community-based element of solid waste management law in Indonesia.

The government regulation on specific waste defines a waste bank more narrowly, as a place for sorting and collecting waste that can be recycled or reused and has economic value, the definition first used by a 2012 ministerial guideline.[2][3] The 2021 regulation sets requirements for the waste a bank handles, its facilities and its governance, provides for partnerships with the central and regional governments, and allows incentives for well-performing banks.[4][5] Waste banks also appear in the producer responsibility roadmap and in the Adipura assessment of district performance.[6][7]

UU 18/2008 allows the public to take part in waste management, and PP 81/2012 provides that community participation may take the form of carrying out household waste handling independently or in partnership with district governments, and of education, training, campaigns and assistance by community groups to change behaviour.[8] Permen LHK 14/2021 states that the central government, regional governments and the public are responsible for managing household and similar waste and "may" form waste banks for that purpose; formation is therefore permitted rather than required.[9]

Types and requirements

A unit waste bank (Bank Sampah Unit, BSU) serves a neighbourhood (rukun tetangga or rukun warga), an urban ward (kelurahan) or a village; a parent waste bank (Bank Sampah Induk, BSI) serves a whole district or city.[1:1] A waste bank must meet requirements on waste management, facilities and governance.[4:1] Its waste management consists of reduction, carried out by reuse without prior processing, and handling, carried out by sorting, collection and processing. Waste is sorted into five kinds: waste containing hazardous and toxic substances (B3) or B3 waste, easily decomposed waste, reusable waste, recyclable waste, and other waste. Processing may consist of composting, material recycling or energy recovery, but waste containing B3 may not be processed.[10]

Both types must have facilities to separate waste by kind, with labels, adequate space and capacity, accessible locations and no pollution; a BSI must also have processing facilities and vehicles for collection. A BSI must take the form of a business entity (badan usaha), serve the district or city, and draw its customers from unit banks, area and facility managers or households. A BSU is formed by the head of the urban ward or village and serves households and micro, small and medium enterprises in its area. Both must have standard operating procedures covering opening hours, collection schedules and records of the type and volume of waste handled.[11]

Partnership and incentives

The central and regional governments may enter partnerships (kemitraan) with waste banks that meet the requirements, taking into account the volume and types of waste handled, the scope of activities, facilities, service area and community participation; partnerships are set out in agreements. Governments may facilitate cooperation between waste banks and recycling businesses, to secure markets, supply and prices for sorted waste, and between waste banks and producers, to support producers' waste reduction. A waste bank in a partnership must monitor its operations and report at least once every six months, and the government evaluates its performance in deciding whether to continue the partnership.[5:1] The government may give well-performing waste banks, and regional governments with such banks, incentives including awards, publicity, recommendations for financial assistance and training.[12]

Existing partnerships and government-formed waste banks had two years to meet the new requirements, and waste banks already storing and collecting waste containing B3 could continue sorting and collecting it until dedicated collection facilities for such waste were provided.[13]

The producer responsibility roadmap, Permen LHK 75/2019, allows producers to meet their obligation to provide collection facilities by working with waste banks registered with the central or regional government, a link described at extended producer responsibility in Indonesia.[6:1] The Adipura regulation of 2019 includes community-run unit and parent waste banks among the facilities monitored in assessing district performance, and awards a plaque to districts with the best-rated facilities, including waste banks.[7:1]

History

The 2012 guideline, Permen LH 13/2012 on implementing reduce, reuse and recycle through waste banks, was signed on 7 August 2012 by the State Minister for the Environment. It set requirements for building construction and management systems and a working mechanism in which customers sorted and delivered waste that was weighed, recorded and credited to a savings book, with sale proceeds shared between savers and operators. It allowed waste banks to be organised as cooperatives or foundations and provided for linking waste banks with extended producer responsibility.[3:1] Permen LHK 14/2021, signed on 25 June 2021 and promulgated on 1 July 2021, revoked the 2012 guideline.[14]

CRPG's regulatory tracker analysed the operation of waste banks under the 2021 regulation in a post on 17 December 2025.[15]

See also

Part of a series on Solid waste management law of Indonesia
Adipura · Extended producer responsibility in Indonesia · Hazardous waste regulation in Indonesia · Permen LH 26/2012 · Permen LHK 11/2024 · Permen LHK 26/2020 · Permen LHK 59/2016 · Permen LHK 6/2021 · Permen LHK 75/2019 · PP 22/2021 · PP 81/2012 · Perpres 83/2018 · Perpres 97/2017 · UU 18/2008 · Waste banks in Indonesia · Waste processing facilities in Indonesia
Identifiers Know ID K26
Categories Waste management in Indonesia
What links here (8)

References

  1. [P] Permen LHK 14/2021, Pasal 1 angka 5 to 9. regulation_id PERMENLHK_14_2021_Bank_Sampah. ↩︎ ↩︎

  2. [P] Peraturan Pemerintah Nomor 27 Tahun 2020 tentang Pengelolaan Sampah Spesifik, Pasal 1 (Bank Sampah). regulation_id PP_27_2020. https://peraturan.bpk.go.id/Details/138876/pp-no-27-tahun-2020 ↩︎

  3. [P] Peraturan Menteri Negara Lingkungan Hidup Nomor 13 Tahun 2012 tentang Pedoman Pelaksanaan Reduce, Reuse, dan Recycle melalui Bank Sampah, Pasal 1 angka 2, Pasal 4 to Pasal 8 and closing formula (signed 7 August 2012, promulgated 10 August 2012). regulation_id PERMENLH_13_2012. ↩︎ ↩︎

  4. [P] Permen LHK 14/2021, Pasal 3. regulation_id PERMENLHK_14_2021_Bank_Sampah. ↩︎ ↩︎

  5. [P] Permen LHK 14/2021, Pasal 13 to Pasal 16. regulation_id PERMENLHK_14_2021_Bank_Sampah. ↩︎ ↩︎

  6. [P] Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor P.75/MENLHK/SETJEN/KUM.1/10/2019 tentang Peta Jalan Pengurangan Sampah oleh Produsen, Pasal 7 ayat (4) huruf a. regulation_id PERMENLHK_75_2019_Peta_Jalan_Sampah. ↩︎ ↩︎

  7. [P] Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor P.76/MENLHK/SETJEN/KUM.1/10/2019 tentang Adipura, Pasal 14 ayat (3) huruf l and Pasal 27 ayat (1) huruf e. regulation_id PERMEN_LHK_p-76-menlhk-setjen-kum-1-10-2019_2019. https://peraturan.bpk.go.id/Details/312183/permen-lhk-no-76-tahun-2019 ↩︎ ↩︎

  8. [P] Peraturan Pemerintah Nomor 81 Tahun 2012 tentang Pengelolaan Sampah Rumah Tangga dan Sampah Sejenis Sampah Rumah Tangga, Pasal 35; Undang-Undang Nomor 18 Tahun 2008, Pasal 28. regulation_id PP_81_2012; regulation_id UU_18_2008. ↩︎

  9. [P] Permen LHK 14/2021, Pasal 2. regulation_id PERMENLHK_14_2021_Bank_Sampah. ↩︎

  10. [P] Permen LHK 14/2021, Pasal 4 to Pasal 9. regulation_id PERMENLHK_14_2021_Bank_Sampah. ↩︎

  11. [P] Permen LHK 14/2021, Pasal 11 and Pasal 12. regulation_id PERMENLHK_14_2021_Bank_Sampah. ↩︎

  12. [P] Permen LHK 14/2021, Pasal 17. regulation_id PERMENLHK_14_2021_Bank_Sampah. ↩︎

  13. [P] Permen LHK 14/2021, Pasal 19 and Pasal 20. regulation_id PERMENLHK_14_2021_Bank_Sampah. ↩︎

  14. [P] Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor 14 Tahun 2021 tentang Pengelolaan Sampah pada Bank Sampah, Pasal 21 and closing formula (signed 25 June 2021, promulgated 1 July 2021), Berita Negara 2021 No. 752. regulation_id PERMENLHK_14_2021_Bank_Sampah. https://peraturan.bpk.go.id/Details/233754/permen-lhk-no-14-tahun-2021 ↩︎

  15. [E] "How Do Bank Sampah Operate Under Indonesian Waste Management Law?", CRPG regulatory tracker, crpg.id, 17 December 2025. https://crpg.id/how-do-bank-sampah-operate-under-indonesian-waste-management-law/ (free sign-in required on crpg.id) The post carries a notice that it is AI-generated; it is cited for the record of the development, not for its legal content. ↩︎