Banana fruit has the highest production rate in Indonesia with a total production of 7.01 million tons/year. However, the amount of fruit waste from the supply chain that supports the production is still uncertain. This study is aimed to analyze the production of fruit waste from the distribution process and to provide some suggestions in optimizing the its process. Data were obtained through direct sampling on three stages i.e. farmers, wholesalers, and retailers. The parameters analyzed temperature, humidity, and waste generation. The results showed that farmers did not produce waste because all the postharvest fruits were sold to the wholesalers. The wholesalers generated average waste 1.98% per total inventory. The retailers produced 2 types of waste from transportation with the average waste generation of 0.67% per total inventory, and daily waste with the average generation of 2.53% per total inventory. Based on this study, improvement in handling systems at distribution process are needed to prevent waste generation. The implementation of countermeasures is also needed by applying the circular economy to improve the efficiency, minimize the waste generation, and improve the profits. The potential actions than can be implemented are utilizing the waste for animal feed and composting.