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Panguragan, Cirebon – Panguragan Village has long been known as the center of the scrap business in Cirebon. Most residents rely on this trade, making it an integral part of the village’s economy. However, not many people know how this industry has developed and why so many residents choose it as their primary source of income.
History and Origins of the Scrap Business in Panguragan
Panguragan was initially inhabited by many migrants seeking opportunities in various business sectors. Before the scrap business grew rapidly, some residents bought and sold human hair. However, over time, this business was gradually replaced by the scrap trade, which offered broader opportunities. As the demand for recyclable materials increased, the residents of Panguragan recognized the great potential in this industry and began to make it their primary livelihood.
Why Do Many Residents Choose the Scrap Business?
Although often regarded as a lower-class occupation, many Panguragan residents see the scrap business as a promising economic opportunity. Scrap materials still hold stable market value due to their consistent demand in the recycling industry. Additionally, access to scrap is relatively easy, as used materials can be sourced from households, markets, and factories.
This business is also highly flexible—it can be run on a small or large scale—allowing anyone to participate, whether as a scavenger, small-scale collector, or large-scale trader. While scrap prices can fluctuate, the potential for profit remains attractive to many residents.
Types of Scrap Traded
The scrap materials traded in Panguragan are highly diverse. Plastics, including used bottles, buckets, and other plastic containers, are among the most common. Paper and cardboard also have substantial market value. Metals such as iron, copper, aluminum, and zinc are frequently collected due to their ability to be melted down and reused in industrial applications.
Additionally, used electronics—including cables and broken devices—fall into the category of high-value scrap. Glass and broken glass are also among the materials commonly traded in the village.
Trading Systems in the Scrap Business
The scrap trade in Panguragan operates through two central systems: borongan (bulk) and kiloan (by weight).
- The Borongan system allows bulk purchases of unsorted scrap at a fixed price per load.
- The Kiloan system requires materials to be sorted by type and quality before being sold based on weight.
Each system has advantages and challenges, depending on traders’ business strategies.
Scrap Collection and Processing
Before scrap materials can be resold, they must go through several stages. Scrap is typically collected from various sources, such as scavengers, small-scale collectors, or individuals selling their used items. After collection, the materials are sorted based on type and quality to facilitate the buying and selling.
Certain types of scrap, such as plastics and metals, often undergo additional processing before being sent to recycling industries. For example, plastic is usually shredded before being transported to recycling plants to simplify processing. Once the sorting and processing stages are completed, the scrap is ready for distribution to more prominent collectors or directly to recycling plants that require these materials.
Challenges in the Scrap Business
Despite its continuous growth, the scrap business faces several challenges. One of the primary obstacles is price fluctuation, which is heavily influenced by demand from the recycling industry.
Competition among collectors is also intense, with many traders vying for the best deals. Additionally, increasingly strict environmental regulations pose challenges, mainly when new policies limit certain waste management practices.
The Impact of the Scrap Business on the Community and the Environment
Despite these challenges, the scrap business has positively impacted the Panguragan community. This industry contributes to the local economy and promotes sustainable waste management.
Waste that would otherwise pollute the environment through recycling systems is repurposed into more valuable materials. As a result, the scrap business in Panguragan is not just a means of livelihood but also part of a more extensive solution for better waste management.
As awareness of the importance of recycling continues to grow, Panguragan remains a significant hub for the scrap trade, contributing economically and environmentally. Although challenges persist, the dedication of scrap business owners in the village proves that even an industry often underestimated can serve as a promising source of income.
