FINANCIAL INCLUSION : TRANSFORMING INORGANIC WASTE INTO INCOME FOR WASTE BANK CUSTOMERS IN MAKASSAR CITY

Abstract

Makassar City faces critical waste management challenges, with daily volumes reaching 800–900 tons. This condition threatens the environment due to increasingly limited handling capacity. As an innovative solution, digital financial inclusion has been introduced to help the community manage income generated from plastic waste collection. Although community participation in waste management is quite high, the main obstacle lies in the lack of understanding and adaptation to formal and digital financial systems. This study uses a qualitative approach with a case study design to deeply explore the experiences of waste bank actors in transforming waste into economic value through digital financial management. The research focus includes community dynamics, transaction governance, price-setting mechanisms, and the transition from manual to digital systems. The research results show that the waste bank program in Makassar has a positive impact on digital financial inclusion and the economic empowerment of marginal communities. Through collaboration with Bank Sulselbar, customers now use digital savings books to store the proceeds from their waste sales. It is recorded that more than 458 tons of plastic waste were successfully managed and paid for through the digital system. Furthermore, digital financial literacy training has proven effective in increasing customers' understanding of modern financial management, thereby creating economic independence while supporting environmental sustainability in Makassar City.

Key Words : Waste Bank, Financial Inclusion, Inorganic Waste Products, Income, Customer