Developing a SustainableSupply Chain for Waste Management : A Case Study of Lombok

University essay from KTH/Industriell produktion; KTH/Industriell produktion

Abstract: Lombok is an island in Indonesia located next to, and slightly smaller than Bali. The tropical island has the potential tobecome “the next Bali” in terms of tourism and is like many other developing countries, suffering from inadequate solid waste management, as of 2020 only managing 20% of its waste. The aim of this report is to map the current situation regarding the solid waste management system, present business opportunities within plastic recycling, present challenges and recommend future steps. A literature review is conducted to give a better understanding of waste treatment methods, waste management in developing countries, the demand of recycled plastics, and foreign direct investments in Indonesia. To map the current waste management situation, a field study is conducted with multiple visits to waste management facilities, and interviews with members of Lombok’s Zero Waste Program. The different aspects of Lombok’s waste management supply chain are explained and other important factors regarding the situation. The mapping is sufficient to serve as an overview and background information for organizations within the field, potential investors, further research, and for our recommendations. The report also contains a case study of a recycling business and a case study of Lombok’s largest landfill. Plastic recycling businesses are in need of expansion and financing from both the public and private sectors. An important finding is that profitable plastic recycling businesses already exist on Lombok, plastic recycling is otherwise often seen as a cost burden. Business and investment opportunities in plastic recycling on Lombok are therefore presented to highlight the fact that plastic recycling can be profitable and economically sustainable. Recommendations to increase the efficiency of current recycling procedures are also presented. If Lombok is going to be able to manage all of its waste, it needs more facilities, and there are many choices of waste treatment methods. Our recommendations for the near future are the following: build a new landfill with proper treatment techniques and an incineration plant to reduce the amount of waste being dumped on landfills, and continue to develop infrastructure for composting and plastic recycling. Composting and plastic recycling are the most sustainable alternatives in the long term, with the aim to reduce the amount of waste being dumped on the landfill or incinerated. Awareness about waste management and financing are two of the major challenges to achieve the short and long term recommendations.

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