The Multiplier Effects of Waste Management in RT-07 of Guntung Village, In Bontang, East Kalimantan, Indonesia

In 2010, Neighborhood area 07 in Guntung Village received Black Award from Bontang government due to environmental issues. The issues are included the mounting trash resulted from this area which is not managed well, dirty and slum environment, unpleasant odors from the rubbish heap and scabies suffered by residents. As the company located next to Guntung Village, PT. Pupuk Kalimantan Timur (PKT) is very concerned about environmental problems. It encouraged these residents to initiate establishing Groups through Corporate Social Responsibility . It aims to "change the slum area to be healthy and great". This program is established to solve the waste problem and exploring economic opportunities. Mekarsari Group turns leaves into compost and its development innovates by processing food waste into liquid organic fertilizer (Indonesia called POC). To improve the group’s institutional status, the joint venture group Mekarsari formed and in extending process its competitiveness, change to Mekarsari Cooperative, this paper observes a legal status. The research method is qualitative with participative observation and technique of data collection employed with interviews. The changing waste into compost and POC, have various effects on sustainable development. The slum village changed to green village. The residents receive additional income and reducing Greenhouse Gases.