Exploration of Opportunities in Indonesia
Indonesia’s textile sector produces over 770,000 tonnes of post-industrial waste annually (estimated), presenting a significant opportunity for circular innovation. With government backing through the Circular Economy Roadmap, there is strong momentum to scale solutions that reduce the usage and dependence on virgin raw materials and create new, circular value chains by building out regional recycling eco-systems. Unlocking this potential could drive sustainable growth, generate millions of jobs, and contribute up to USD 45 billion to the national economy by 2030 (UNDP). This opportunity also strongly aligns with Laudes Foundation’s mission to inspire and challenge industry to transition toward a green, fair and inclusive economy.
Building Insights for Circularity
The scoping study is contracted to Closed Loop Fashion as the lead organisation, funded by Laudes Foundation, and supported by Evermos’s Foundation (Yayasan Sahabat Beramal Jariyah) in Indonesia and Double Delta in Singapore for their respective expertise. This scoping study maps a variety of aspects of Indonesia’s circularity landscape by analyzing existing initiatives, policies, stakeholder roles, and supplier readiness in the textile sector. It identifies regulatory and investment opportunities to scale circular models, assess pathways to integrate informal waste workers for a just transition, and outline potential collaborations with funders and NGOs to create pathways to an inclusive, circular textile industry in Indonesia.
Key Research Objectives
The scoping project focuses on four main areas:
1. Mapping Existing Circular Economy Initiatives in Indonesia
This phase assesses current circular economy initiatives in Indonesia to understand their scope and strategic priorities.
2. Identify regulatory framework and opportunities
The project evaluates how local foundations can strengthen their role in receiving and managing international funding.
3. Identify opportunities and challenges in attracting more capital for circularity & innovations
Analyzes existing capital flows into circular economy initiatives and explores pathways to increase investment.
4. Understanding the role of waste-handlers in a just transition
Examines how waste handlers can be formally integrated into Indonesia’s circular economy in an inclusive and just way.
The findings of this study will be compiled into a landscape report for Laudes and other foundations to guide on potential interventions in Indonesia around textile circularity.
This project is made possible through funding from Laudes Foundation and is implemented by Closed Loop Fashion in collaboration with the Evermos Foundation (Yayasan Sahabat Beramal Jariyah). Evermos is a social commerce platform that empowers local entrepreneurs, particularly women in tier 2 and 3 regions, by providing access to curated products, reskilling opportunities and income-generating activities. Also in collaboration with Double Delta, a Singapore-based impact advisory firm committed to mobilising capital and expertise to scale businesses and solutions that deliver measurable social and environmental benefits across Asia. By working with investors, entrepreneurs, and stakeholders, they accelerate transformative models that address global challenges while driving long-term sustainable impact.
