Innovation

Waste to Gold is an innovative program that exchanges 6 kg of plastic bottle waste for 0.01 g of gold - the equivalent of 24,000 Indonesian Rupiahs. At its core, it promotes responsible waste collection and disposal and provides economic incentives for individuals to participate in environmental conservation efforts. By facilitating the exchange of plastic waste for a tangible asset like gold, Waste to Gold actively contributes to a circular economy, where waste is transformed into valuable resources. This program is an example of creative solutions that have the potential to address current global issues.

The creation of this program came from the company’s Board of Directors comprising four members: CEO Aditama Eka, Director of Risk Management Amien Budiarto, Director of Strategic Management Rendy Gustavianno Surya, and Director of Investment Terry Eduard. Together, this dynamic team collaboratively led the development and implementation of the PT. Bromo Mineral Resources’ Waste to Gold program.

Waste exchange initiatives are not a new concept but Waste to Gold is unique as it is designed to encourage investment opportunities. The team has created a formula that accounts for price fluctuations and calculates the value of gold in relation to plastic waste - an interesting model for customers and those interested in investment. Waste to Gold offers a direct link between waste management and personal finance, transforming the narrative around environmental conservation and illustrating that sustainability can be both impactful and economically beneficial.

As Rendy Gustavianno Surya mentioned in our interview, the program’s main goal is “to diversify and make it accessible for customers to invest in gold just by exchanging it with waste.” In standard practice, someone interested in owning gold would have to purchase it from a metals dealer or a bank. The program allows a broader range of individuals to access gold because, instead of exchanging money to purchase gold, they exchange plastic waste. Plastic waste has no monetary value to most people; therefore, individuals experience a net gain when they participate in the Waste to Gold program. Ultimately, it minimizes potential risk and empowers individuals to explore innovative and socially responsible investment paths.

Inspiration

The initial idea for the Waste to Gold program came after the company’s Board of Directors conducted a survey with waste collectors. The Board inquired about how much they earn through waste collection. The survey concluded that 1 kg of plastic waste is usually worth around 1,500 - 2,000 Indonesian Rupiahs. This valuation is not enough for waste collectors to afford basic living expenses. The company also noted that, in reality, the price of plastic waste sold in bulk by waste companies ranges from 4,000 - 5,000 Indonesian Rupiahs, which is more than double earned by small-scale waste collectors.

During our interview, Rendy Gustavianno Surya explained that this lack of transparency made the Board sympathize with how little waste collectors earn for their efforts. The realization that these individuals were receiving less than half of the value of their collected plastic waste prompted the Board of Directors to conceptualize a program that not only addressed the environmental challenges posed by plastic pollution but also aimed to empower and uplift the livelihoods of waste collectors. After evaluating the results of the survey, the CEO informed the other Board members that gold can be reduced to less than 0.1 grams, an economical weight and price that can be easily exchanged for waste. Rendy Gustavianno Surya said that they were driven to create a program that would “standardize the price of waste to a point where it has actual economical value, not just for the company managing it, but also for the people.”

Overall impact

The impact of the innovation on the business has been substantial - evident in the interest and collaboration efforts from significant partners. Thus far, the company has garnered the attention of key industry players who are eager to engage in collaborative ventures. This signifies a positive shift in the business landscape, indicating the program's potential for growth and scalability.

On a societal level, the innovation has been met with overwhelmingly positive public perception. The community's anticipation and enthusiasm to participate in the Waste to Gold program emphasizes its social impact. The program resonates with the public and fosters excitement and a desire to contribute actively to both environmental conservation and economic empowerment.

The environmental impact of the innovation is evident. The stringent requirement of exchanging waste for incentives has instilled new habits among customers, redirecting their focus from discarding waste to accumulating it for exchange. This shift in behaviour suggests a positive change in waste disposal behaviours, aligning with the program's mission to reduce environmental impact by encouraging responsible waste management.

In the short term, the program was launched on a small scale with limited requirements, focusing solely on accepting plastic waste. However, in the long term, PT. Bromo Mineral Resources has ambitious plans to expand the scale of the program and broaden the range of accepted waste types. This strategic progression hints at a dynamic initiative with the potential to create positive societal and environmental impact.

Concrete evidence supporting the occurrence of these impacts is reflected in the sentiments expressed during interviews. One notable quote emphasizes the scalability of the program: "If 6kg of plastic wastes are equal to 0.01g of gold, 600kg of plastic wastes are equal to 1kg of gold, you are reducing mountains of wastes in exchange for your ownership in gold." This statement captures the link between waste reduction and ownership of a valuable asset, providing a clear illustration of the program's positive effects on waste management habits and environmental stewardship.

Business benefit

The business benefit from the Waste to Gold program aligns seamlessly with the United Nations Sustainable Development Goals (UN SDGs), particularly Goal 17: Partnerships for the Goals. By attracting substantial collaboration from prominent partners, the program exemplifies the spirit of international cooperation necessary for achieving sustainable development. The program not only promotes innovative solutions to address environmental challenges but also establishes a model where private enterprises actively engage with diverse stakeholders to create positive societal impact. This collaborative approach mirrors the UN's emphasis on forming partnerships that leverage the unique strengths of each entity involved. The Waste to Gold program, with its business partnerships and scalability, exemplifies a collective effort towards achieving the broader UN SDGs. This illustrates the potential of strategic collaboration in driving sustainable business practices and fostering positive global change.

Social and environmental benefit

In terms of social impact, by exchanging plastic bottle waste for a tangible asset, like gold, the Waste to Gold initiative introduces a novel approach to financial inclusion. This aligns with the broader objectives of Goal 10: Reduced Inequality of the UN SDGs, as it fosters economic empowerment through innovative models. The ownership of gold, acquired through responsible waste management, becomes a unique and accessible investment opportunity for individuals who may not have traditionally considered participating in personal finance. In this way, the program not only contributes to sustainable development but also opens up avenues for individuals to diversify their economic portfolios and engage in responsible and meaningful investments. Additionally, the program's empowerment of waste collectors aligns with Goal 1: No Poverty, as it is targeted to improve the livelihoods of those engaged in waste collection by providing economic incentives and giving them more financial independence.

From an environmental standpoint, the program's positive public perception and community participation highlight its contribution to Goal 12: Responsible Consumption and Production. By instilling a sense of responsibility among individuals to actively engage in waste reduction and responsible waste management, the program directly supports the overarching objective of ensuring sustainable consumption patterns. In addition, the program addresses Goal 13: Climate Action by promoting sustainable waste management practices and reducing the environmental impact of plastic pollution. The Waste to Gold program becomes a tangible embodiment of the intersection of social and environmental goals outlined by the UN SDGs, showcasing the transformative potential of innovative initiatives in advancing sustainable development.

Interview

Rendy Gustavianno Surya, Director of Strategic Management