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Assessing the alignment of second-hand clothing import regulations with circular economy objectives in Indonesia

Andynar, Alia (2023) Assessing the alignment of second-hand clothing import regulations with circular economy objectives in Indonesia.

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Abstract:The activities of second-hand clothing (SHC) imports in the textile industry are growing, with developing countries being the largest importers of SHC worldwide. Governments have noticed this, which has resulted in the development of regulations that limit, prohibit, and dispose of SHC imports in Indonesia. Given that the textile industry plays a significant role in the country’s objectives on achieving a circular economy, it is crucial to consider the core elements of circular economy objectives within this sector, such as the reduction of textile waste, implementation of a circular textile life cycle, and the enhancement of sustainable production and sourcing is essential. In order to assess the effectiveness of SHC import regulations in Indonesia following circular economy objectives, this study examined the sustainability implications of the regulations across economic, environmental, and societal dimensions to evaluate the effectiveness of SHC import regulations in Indonesia in light of circular economy objectives. This study utilised a structured method and used Regulatory Impact Assessment (RIA) as its analytical framework, in contrast to prior research that included systematic reviews, regional case studies, and National Resilience Concepts. By implementing non-monetary qualitative cost-benefit analysis (CBA) within the RIA tool, the research evaluated the alignment of SHC import regulations with circular economy objectives. Semi-structured interviews were conducted with thirteen carefully selected participants, falling into three distinct categories: regulators and implementers of regulations, regulated parties, and other stakeholders. The study followed the ordered steps of RIA, starting with problem formulation that enforced regulations creation, moving to objectives identification, exploring regulatory alternatives (continuation, improvement, or cancellation), and completing with CBA. A balanced evaluation of regulations' effectiveness is attained by considering both positive and negative sustainability implications. The study determined the regulations to be “effective to a certain extent”. Additionally, CBA was used to assess whether these SHC import regulations benefit or harm particular circular economy objectives. The study's results confirmed alignment with these objectives, particularly in waste reduction, creating circular textile lifecycles, and encouraging sustainable production. However, improvements are still needed to address local textile waste, reduce smuggling hubs, promote local SHC chains, and encourage circular consumer behaviour, which requires the active involvement of stakeholders in decision-making.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:43 environmental science
Programme:Environmental and Energy Management MSc (69319)
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