Financing Model for Construction and Demolition Waste in Indonesia

https://doi.org/10.5614/j.eng.technol.sci.2025.57.4.6

Authors

  • Fajar Susilowati Civil Engineering, Faculty of Engineering, Tidar University, Jalan Kapten Suparman No. 39 Potrobangsan, Magelang 56116, Central Java https://orcid.org/0000-0002-1762-9791
  • Jalu Aji Prakoso Faculty of Economic, Tidar University, Jalan Kapten Suparman No. 39 Potrobangsan, Magelang 56116, Central Java, https://orcid.org/0000-0003-2519-0472
  • Arrizka Yanuar Adipradana Civil Engineering, Faculty of Engineering, Tidar University, Jalan Kapten Suparman No. 39 Potrobangsan, Magelang 56116, Central Java https://orcid.org/0000-0002-8331-4640
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Abstract

Construction waste poses a significant environmental and economic challenge in Indonesia’s rapidly expanding construction sector. This research develops a financing model for managing construction waste throughout the project life cycle, emphasizing the integration of cost components and waste management strategies. Data were collected through surveys, structured interviews, and observations from 80 construction projects across Indonesia. The analysis revealed that while reinforcement, bricks, and split stone have high recycling potential, actual reuse remains limited due to poor planning and insufficient infrastructure. Seven financing components were identified: material loss, production/management, sorting, collection, transportation, recycling, and dumping. Notably, material loss accounts for the largest cost share—up to 10% of project value—while recycling and dumping costs are underfunded at 0.01%–0.5%. A cost-based model was developed to simulate waste-related expenses, ranging from 0.39% to 20.5% of overall project costs. The research also highlights the design stage as a critical leverage point for maximizing waste reduction. By aligning financial planning with life cycle stages, this research provides practical guidance for stakeholders and supports Indonesia’s transition to a circular construction economy through better budgeting, policy development, and waste strategy implementation.

How to Cite

Fajar Susilowati, Jalu Aji Prakoso, Arrizka Yanuar Adipradana (2025). Financing Model for Construction and Demolition Waste in Indonesia. Journal of Engineering and Technological Sciences, Vol. 57 No. 4 (2025): Vol. 57 No. 4 (2025): August , 505-518. https://doi.org/10.5614/j.eng.technol.sci.2025.57.4.6

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Date Log

Submitted
October 8, 2024
Accepted
July 4, 2025
Published
August 14, 2025

Keywords

  • circular construction
  • construction waste
  • financing model
  • Indonesia
  • project life cycle

Issue

Vol. 57 No. 4 (2025): Vol. 57 No. 4 (2025): August

Section

Articles

How to Cite

Financing Model for Construction and Demolition Waste in Indonesia. (2025). Journal of Engineering and Technological Sciences, 57(4), 505-518. https://doi.org/10.5614/j.eng.technol.sci.2025.57.4.6

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