Performance Analysis of Plastic Waste Management in the Informal Waste Sector: Insights from Balikpapan City, Indonesia

Abstract

The informal sector plays a crucial role in managing plastic waste in developing regions, driven by economic necessity and limited formal infrastructure. This study evaluates the informal waste sector in Balikpapan City, focusing on material flows, financial conditions, and greenhouse gas (GHG) emissions using material flow analysis, GHG emissions calculation and cost analysis. Data from surveys and interviews reveal that while the sector collects significant amounts of plastic waste, it manages only a small portion, such as PET and HDPE, due to infrastructure and market constraints. Economic analysis highlights disparities in profitability, with scrap dealers earning the least net profit (405 USD per ton) and large-scale middlemen the most (1,009 USD per ton). However, GHG emissions from open burning and transportation pose significant environmental challenges. The performance index indicates that small-scale middlemen achieve the best balance of efficiency and sustainability (0.876), whereas large-scale middlemen prioritize prof¬itability but have high emissions (0.603). To make performance more efficient and sustainable, this study suggests integrating informal waste actors into municipal systems, promoting safer recycling practices, and adopting technologies to minimize GHG emissions. These strategies provide a pathway for cities to reduce environmental harm while fostering inclusive and sustainable waste management.

Keywords: performance index; informal waste sector; GHG emission; Balikpapan City; plastic waste management