Optimization of Wood Waste Management through Reuse and Recycle Program

Abstract

The SarKa innovation program implemented by PT Paiton Energy aims to address the issue of wood waste management by transforming waste materials into valuable products, specifically wood pellets. The program focuses on reducing the amount of wood waste sent to landfills and optimizing the economic value derived from waste materials. In 2024, 143,480.61 kg of wood waste was processed into wood pellets, resulting in significant cost savings of Rp 24,024,660.62, which increased to Rp 43,567,099.68 in 2025. Additionally, the sale of wood pellets generated substantial economic benefits for the local community, with revenue reaching Rp 344,353,468.84 in 2024 and Rp 312,230,880.95 in 2025. The program not only promotes environmental sustainability by reducing landfill waste but also fosters social empowerment by involving local communities in pellet production, creating new business opportunities. The transformation of wood waste into useful products reflects a shift toward a circular economy, optimizing value chains and reducing environmental impacts. Moreover, the program has cultivated a culture of sustainability within the company, where employees and local communities recognize the importance of resource management and waste reduction. This research highlights the economic, environmental, and social benefits of such innovative programs and suggests the potential for scaling and replicating these practices in other industries.