From Coffee Waste to Profit, Bank Mandiri Presents Mandiri Lingkar Hijau!

Kapanlagi.com - Bank Mandiri launched the Mandiri Lingkar Hijau program, which focuses on processing coffee waste into economically valuable products. This initiative aims not only to address waste issues but also to empower local communities. In implementing this program, Bank Mandiri collaborates with Bell Living Lab, a company from Bandung that processes coffee bean husks and is the winner of the 2023 Young Entrepreneurs Mandiri award. This collaboration includes waste collection, research, processing, training, and marketing of the processed products.

This series of activities will run until September 2025, aiming to collect up to 2.5 tons of coffee grounds each month and 2 tons per season for processing coffee skins. Furthermore, data from the Central Statistics Agency (BPS) 2023 shows that Indonesia is the 4th largest coffee producer in the world, with a production of 774,960 tons in 2022. Coffee waste itself contains 54.5% carbon, which can contribute to increased CO2 and methane emissions into the earth; this can be prevented by managing waste and utilizing the by-products of coffee production.

Corporate Secretary of Bank Mandiri, Teuku Ali Usman, stated that all activities of Mandiri Lingkar Hijau will involve farmer groups, coffee shops, and vocational school students (SMK). In this activity, coffee waste from Coffee Shops and Coffee Farmer Groups is collected. Then it will be processed into several types of materials, namely M-Tex Coffee Leather, Kalpa Panels, and Coffee Board. The waste that has been converted into end products such as fashion items in the form of shoes, lanyards, wallets, and furniture in the form of chairs and tables. These products are then marketed through displays in Coffee Shops and are also showcased at various other expo events.

“The beneficiaries of this activity are the Pasir Jirak Kahuripan II Farmer Group, more than 35 coffee shops spread across Bandung, and students from SMK 14 Bandung,” he said in a written statement on Thursday (26/9).

1. Benefits of Managing Coffee Waste

The benefits of processed coffee waste products can increase public awareness and knowledge among coffee farmers about the potential that can be developed from coffee waste, beyond the utilization of its beans, such as alternative leather materials in the fashion industry. According to Ali, the processing of Indonesian coffee waste must be developed as an effort to maintain environmental sustainability. Moreover, Indonesia is the fifth largest coffee producer in the world, producing 756.1 thousand tons of coffee beans in 2023.

“Coffee waste is known to contain 54.5 percent carbon, thus having the potential to release more carbon dioxide and methane into the atmosphere. The management and processing of waste from coffee production can reduce potential emissions,” said Ali.

In addition, the development of products from coffee waste has the opportunity to provide a positive and sustainable economic impact. First, the absorption of coffee waste can provide additional income to coffee farmers. There is a potential increase in income from this processing of up to 5-10%, where the purchase price of coffee husk waste is set at Rp10,000 per kg. Meanwhile, the wage for peeling services using a pulping machine is priced at Rp1,000 per kg of processing.

“Furthermore, waste processing training provides new skills to vocational school students, coffee shop owners, and coffee farmers. As a result, it can create job opportunities, especially green jobs," said Ali.

The Mandiri Green Loop program is part of the Mandiri Looping For Life campaign, a major campaign by Bank Mandiri aimed at reducing and adding benefits from waste, both organic and inorganic. Mandiri Looping For Life has been initiated since the beginning of this year, starting with the initiative to create uniforms made from recycled fabric for Bank Mandiri's Singapore branch, as well as hats made from recycled fabric for the winners of the Mandiri Jogja Marathon 2024, and other major programs in the future.

The activities of Mandiri Looping For Life are an effort to realize Bank Mandiri's vision as "Indonesia's Sustainability Champion." This recycling initiative aligns with the ESG framework established by Bank Mandiri, particularly the Sustainability Beyond Banking pillar which encompasses achieving the Sustainable Development Goals and forming a sustainable business ecosystem.

(kpl/glo)