Reverse Logistics Analysis on Household Electronic Waste Management Using System Dynamics Simulation Approach

Abstract

E-waste is the fastest-growing type of waste in the world. The formal sector can play a role in managing waste according to environmental standards and minimizing the risk of fraction recovery with supporting facilities. However, the formal sector of e-waste management simply cannot compete with its informal sector, which has a dominant role in Indonesia. This study aims to identify what factors influence formal sector e-waste management, how it is currently performing, and to design better policies for e-waste management. This research uses the System Dynamics approach to view the complex systems of e-waste management holistically. In Jakarta, public awareness and the competition with the informal sector were the biggest challenge in this industry. The results show that public awareness-raising policies can gradually improve reverse logistics performance and economic benefits. In addition, the WEEE Processing Fund policy can double the performance and economic benefits.