The Implementation of Circular Economy in Indonesia’s Fashion Industry

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Asia-Pacific countries that experience enormous economic growth alongside significant externalities in the fashion industry are the epitome of the neoclassical economy. The emergence of the circular economy concept through its regenerative and restorative design presents a potential solution to alter our current paradigm radically. By this notion, this research solicited the following questions: How is a circular economy approach applied in Indonesia’s fashion industry? The study utilized Product Design and Business Model Strategies for a Circular Economy model. Through in-depth interviews and purposive sampling, case study analysis was conducted to gather the primary data. The results conclude that: (1) design for desirability and durability ensure long-life products. (2) resource efficiency through zero waste pattern design poses a solution to the industry’s problem, albeit there is a possibility that a rebound effect could emerge. (3) Downcycling and deconstructing to upcycle are the most viable and feasible avenues to close the resource loops in the fashion industry. Furthermore, a more progressive stakeholders’ mindset; limit consumption growth, and the social dimension are vital to support the circular economy implementation. This study contributes to the existing literature by providing an understanding of system thinking, particularly the design of thealternative solution and its impact throughout the production process.
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