From waste to inclusive green growth: Assessing the socio-economic and environmental impact of textile recycling―A case study of Indonesia

Sammanfattning

While vital to Indonesia’s economic growth, the textile industry has exacerbated textile waste generation and environmental degradation, posing urgent sustainability challenges. Rising unemployment further compounds these issues, prompting policy responses such as the Bappenas’ Circular Economy Roadmap and National Action Plan 2025–2045, which aim to drive circularity and generate employment opportunities, particularly for women and marginalised groups. This study employs the Social Life Cycle Assessment framework to assess the socio-economic and environmental impacts of an Indonesian circular textile recycling start-up, focusing on 'Workers' and 'Local Communities' as selected stakeholders. Results indicate that the company effectively contributes to local employment, environmental improvement, and cultural heritage preservation. However, contrary to governmental expectations, gender inclusivity remains limited due to local cultural norms and specific labour requirements. These findings stress the importance of culturally responsive and gender-sensitive strategies to ensure an effective transition towards sustainable and inclusive green growth within circular economy practices in Indonesia.