Out of the 2,142 existing community-managed sorting and recycling facilities in Indonesia, known as TPS-3R, only 14% are functioning optimally due to economic challenges, highlighting the need for financially viable TPS-3R. To address this issue, the research aims to recommend an economically viable plastic recovery waste management system with optimum residue and income. Cibodas and Padamukti Villages are chosen as the case study location, as it has only 20% waste collection coverage and is located in the Citarum Watershed, whose river is a source of water for 60 million people and is part of the Citarik Ecotourism Living Lab. Primary data collection was carried out through interviews with recyclers in the villages and through waste volume and composition characterization. Three scenarios were developed for the Plastic Recovery Facility (PRF) objectives: Scenario 1 (S1) serves as the baseline of PRF, Scenario 2 (S2) buys plastic wastes from existing traders to be processed with more advanced plastic recycling technologies, and Scenario 3 (S3) is a self-sustaining PRF that could be replicated for the whole villages. Data analysis involved mass balance, financial models, BCR, NPV, and multicriteria decision-making. The residue disposed of in landfills is 32%, 17%, and 28% of the total waste managed for S1, S2, and S3. Financial modeling yielded BCR values of 1.06, 1.15, and 1.24, as well as NPV +IDR78,036,332; +IDR465,224,754; and +IDR354,414,072. The results highlight the importance of detailed analysis of mass balance and financial modeling according to the waste composition in any TPS-3R location, especially the differences in the value of rigid and flexible plastics, which will affect the types of technology and products. While the recommended scenario, S3, does not eliminate the need for capital investment from the government, it provides a framework to plan PRF with an operating surplus, which will increase the community’s willingness to run it and ensure the PRF’s long-term functionality to yield social and environmental benefits.