ROLE OF PAYMENT VEHICLE IN WILLINGNESS TO PAY FOR WASTE FEE IN COBLONG DISTRICT, BANDUNG CITY

Waste retribution revenue in Bandung City is found to be very low, contributing only 22% of the Regional Waste Management Unit income, resulting in a source of financing for waste management that still relies on the APBD. One of the factors affecting this level of revenue is the payment vehicle s...

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Bibliographic Details
Main Author: Ninan Nury, Seranti
Format: Final Project
Language:Indonesia
Subjects:
Online Access:https://digilib.itb.ac.id/gdl/view/80385
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Institution: Institut Teknologi Bandung
Language: Indonesia
Description
Summary:Waste retribution revenue in Bandung City is found to be very low, contributing only 22% of the Regional Waste Management Unit income, resulting in a source of financing for waste management that still relies on the APBD. One of the factors affecting this level of revenue is the payment vehicle system in place, namely the mechanism for setting tariffs and collecting waste fee. In evaluating the system, this study uses the Contingent Valuation Method (CVM) to analyze the role of the waste fee payment vehicle on people's willingness to pay (WTP), identify the amount they are willing to pay for each payment vehicle, and develop strategies and recommendations for the waste fee system in Bandung City. The results show that the choice of tariff mechanism has a major role in the WTP value obtained, with an average WTP of Rp13,988/KK/month for a flat tariff and Rp131,387/KK/month for a tariff based on the amount of waste. Meanwhile, the collection mechanism does not play a significant role, with an average WTP of IDR11,847/KK/month for direct collection and IDR10,640/KK/month for indirect collection. Four respondent profiles were obtained from Multiple Correspondence Analysis (MCA) mapping based on payment vehicle preferences, while attributes that influence the grouping of WTP into three clusters (Low, Medium, and High WTP) include age, expenses, education level, family size, satisfaction with waste management, and information gain.