SIRCLO Collaborates with Garbage Mall for MSME Waste Recycling

SIRCLO announces collaboration with MallSampah, a platform end-to-end waste/waste management into recyclable goods that are productive and have economic value. This initiation arose because of the emergence of the urgency of waste management along with the increasing pace of the economy in the MSME sector, as SIRCLO's entry into the circular economy was marked.

According to data from the Ministry of the Environment, as much as 60% of waste ends up in landfills, then 30% is not managed, and only 10% is successfully recycled. Waste that is not successfully recycled and accumulates in the open air has an impact on climate change and global warming. With the targeted number of MSMEs reaching 14,5 million this year, business activities in the MSME sector are certainly correlated with emissions and waste generated.

“As a technology company that provides an integrated business ecosystem, this strategic collaboration with MallSampah is expected to encourage more business actors to implement sustainability and innovative strategies in the process. This initiative is only SIRCLO's first step to contribute to the creation of a good circular economy system, starting from MSME players to grassroots communities," said SIRCLO Impact Manager Jiwo Damar Anarkie in an official statement, Monday (18/7).

He continued, citing the World Bank, 40% of urban residents in Indonesia do not yet have access to basic waste collection. This will cause an increase in waste production in urban areas per day from 105 thousand tons per day to 150 thousand tons per day, an increase of 42%.

SIRCLO's internal study also states that 1 MSME in the trade sector produces 2 kg of waste every day or 60 kg per month. This figure has not been calculated from the amount of household waste for MSME actors who donate an average of 1 kg of waste per day. With the current condition of the SIRCLO ecosystem, at least 500 kg - 1 ton of waste can be generated every day.

The data above further illustrates the urgency of the waste management education program for MSME actors and starting a circular economy from the MSME sector. Through an initiative that is also a pilot project In this limited scale, SIRCLO wants to see the interest of MSMEs in supporting environmental conservation.

The initial initiative was marked by the implementation of a webinar that took place at the end of June 2022. Then continued with waste collection by category, waste collection by MallSampah partners, until recycling activities until August 2022, it is hoped that the activities will be actively followed by 100 SIRCLO MSME partners.

“Mall Trash Technology is used to find out waste management footprint, when and where it is taken, how long does the recycling process take, to the results of the recycling of the waste. It is hoped that by digitizing this circular economy initiative, SIRCLO will be able to monitor the traces of waste generated and what the waste produced becomes.”

SIRCLO partner SMEs will later receive attractive incentives by exchanging business waste, be it plastic, cardboard, bottles, other paper. After pilot project When this is completed, the circular economy initiative will be managed into a movement green economy. Its capacity is expanded by reaching SIRCLO warehouses, brand principals, as well as distributors who work closely with the company.

“With the digitization of the circular economy, SIRCLO and brand-distributors can also monitor the movement of waste/carbon footprint to recycled products. We really hope that this initiative will take place in the long term based on the values ​​of preserving the environment,” concluded Jiwo.

B2B cooperation for Garbage Mall

Founder & CEO of MallSampah Adi Saifullah Putra said, the company as a circular economy platform not only facilitating the community individually or B2C, but also including B2B through the provision of technology in strategic sectors, especially FMCG, F&B, e-commerce, and others.

This is motivated by the awareness that responsible waste collection and recycling requires a solution hand in hand to all stakeholders, including MSMEs to be skilled and consistent in recovering post-consumption products.

“As a digital innovation that optimizes the implementation of a circular economy-based waste management system, MallSampah collaborates with SIRCLO to introduce a waste recycling system that is real-time and massively efficient with the approach bottom-up and have an economic impact while maintaining environmental sustainability,” said Adi.

For B2B, one of the initiatives carried out with Kopi Soe was the release of the MallSampah Reverse Machine (RVM) or known as Ms Box. This innovation, which was inaugurated at the end of last year, is an alternative to the drop off feature in the MallSampah application, which allows consumers to recycle from one plastic cup.

After going through quite mature research that has been found in developed countries, the Ms Box developed by the company can be adopted by MSMEs and is easily accessible by the public. In general, RVM uses a sensor engine and a power source, but Ms Box replaces it with Ms Box features and technology in the MallSampah application.

“This makes RVM from MallSampah 50%-70% more affordable than RVM in general. We deliberately created this strategy so that RVM can be adopted by developing countries like Indonesia. Every bottle exchanged by the user is converted into Ms Points which can be redeemed.redeem with various attractive vouchers at merchant partners, including exchanging them for e-wallet," said Adi separately, quoted from company blog.

The bottle that has been accommodated inside box will be picked up by Mallsampah collector partners and confirmed to end up in the recycling industry to be reprocessed into new raw materials and goods. This Ms Box system can run well because of the parties who work together, in this case Kopi Soe. Malls trash will do monitoring periodically in this pilot box in order to get maximum results in its implementation.

The types of waste that can be put into the Ms Box are all types of PET and PP, or more commonly known as bottles of bottled drinking water and cup boba plastic. People only need to download the Mallsampah application on the Play Store or App Store.

As for the implementation of waste recycling management carried out by MallSampah, it is divided into three models, namely: MallSampah App, MallGarbage for Brands, and MallTrash for Government. Until the third quarter of 2022, it is claimed that the company has reached more than 50.000 recycler users and has been used by various brand such as Coca Cola, Nutrifood, Tokopedia, Gojek, The Body Shop, Sociolla, PUPR, Le Minerale, Indonesian Ulema Council (MUI), Kopi Soe, and others.

Meanwhile, the company has empowered and digitized the work of more than 600 local collectors, 100 tons of recycled waste, and reduced 45.000 carbon dioxide emissions every month.

In Indonesia itself, more and more startups are trying to solve the issue of waste management, there are Gringgo, Waste4Change, OCTOPUS, Money, Jangjo, Recosystem, and much more.