Abstract
A landfill is a place to manage and store wastes. Various problems have occurred due to the existence of landfill, either environmental, social, and economic issues. This study was associated with the effort of improving the prosperity of the local community around the landfill in Indonesia. The aims of this study were to discover the form and estimation of externality values of landfill towards the community, to determine the value chain pattern and the amount of added value of chemical waste derived from landfill which received by waste pickers and collectors. This study was designed with a mixed method by implementing descriptive statistics analysis, added value analysis, revenue analysis, Cost of Illness, and Replacement of Cost. The research results have indicated that the existence of landfill has brought positive and negative impacts on the community life the area around the landfill. The impacts which caused by the existence of landfill include economic, social, and environmental impacts in which the estimation of positive externality value was bigger than the estimation of negative externality value.
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