Green Initiative, Bank Mandiri Processes Coffee Waste into Valuable Products
Source: (http://kompas.com)
Green Initiative, Bank Mandiri Processes Coffee Waste into Valuable Products
By Samuel Nata Charis
Bank Mandiri has introduced the Mandiri Lingkar Hijau initiative, aimed at transforming coffee waste into products with economic value. Along with tackling waste problems, the program seeks to empower local communities. The initiative is in partnership with Bell Living Lab, a company from Bandung, West Java, specializing in processing coffee bean shell waste. Bell Living Lab was recognized as the top winner in the Mandiri Young Entrepreneurs 2023 competition. Together, Bank Mandiri and Bell Living Lab will oversee activities such as waste collection, research, processing, training, and marketing of the products. The program will run through September 2025, aiming to collect up to 2.5 tons of coffee grounds monthly and 2 tons of coffee husks each season for processing. According to 2023 data from the Central Statistics Agency (BPS), Indonesia ranks as the world’s fourth-largest coffee producer, with a production of 774,960 tons in 2022.
Coffee waste contains 54.5% carbon, which can contribute to the release of carbon dioxide (CO2) and methane into the atmosphere. Proper waste management can help prevent these negative impacts. Bank Mandiri’s Corporate Secretary, Teuku Ali Usman, stated that the entire Mandiri Green Circle program will involve coffee farmer groups, coffee shops, and vocational high school (SMK) students. Coffee waste from these coffee shops and farmer groups will be collected for processing. The coffee waste will be processed into several materials, including M-Tex Coffee Leather, Kalpa Panels, and Coffee Board. The final products will include fashion items such as shoes, lanyards, and wallets, as well as furniture like chairs and tables. These products will be marketed through coffee shops and showcased at various exhibitions.
“The beneficiaries of this initiative are the Pasir Jirak Kahuripan II Farmer Group, over 35 coffee shops across Bandung, and students from SMK 14 Bandung,” Ali said in a written statement received by Kompas.com on Saturday (September 28, 2024). The benefits of these coffee waste products are expected to raise public awareness and enhance coffee farmers’ knowledge of the potential uses of coffee waste beyond its beans, such as its application as an alternative material in the fashion industry.
According to Ali, coffee waste processing in Indonesia must be developed as part of efforts to protect the environment. Moreover, Indonesia is the world’s fifth-largest coffee producer, producing 756,100 tons of coffee beans in 2023. “Coffee waste is known to have a 54.5% carbon content, which increases the risk of releasing more carbon dioxide and methane into the atmosphere. Proper waste management and processing from coffee production can help reduce potential emissions,” Ali explained. Additionally, developing products from coffee waste holds the potential to provide sustainable positive economic impacts. The process of collecting and processing coffee waste can offer additional income to coffee farmers. There is a potential for a 5-10% increase in income through this processing, with coffee husk waste being purchased at Rp 10,000 per kg. Meanwhile, the labor cost for peeling the coffee using a pulping machine is set at Rp 1,000 per kg. “Waste processing training provides new skills to SMK students, coffee shop owners, and coffee farmers. This could open up new job opportunities, especially in green jobs,” Ali added.
The Mandiri Lingkar Hijau program is part of the Mandiri Looping For Life campaign, a broader Bank Mandiri initiative to reduce and repurpose both organic and inorganic waste. Mandiri Looping For Life started in early 2024, beginning with the creation of recycled fabric uniforms for Bank Mandiri’s Singapore branch, as well as recycled fabric hats for winners of the Mandiri Jogja Marathon 2024. These activities are part of Bank Mandiri’s vision to become “Indonesia’s Sustainability Champion.” This recycling initiative aligns with the Environmental, Social, and Governance (ESG) framework set by Bank Mandiri, particularly the Sustainability Beyond Banking pillar, which focuses on achieving the Sustainable Development Goals and creating a sustainable business ecosystem.
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