Textile and apparel industries face infrastructure and expansion challenges

A report by the U.S. Government Accountability Office (GAO) highlights significant hurdles in developing a textile circular economy. The study identifies limited funding and a lack of domestic infrastructure as primary obstacles to nationwide textile collection and recycling. Policy options discussed to address these issues include tax credits and extended producer responsibility programs, similar to those proposed or enacted in the European Union and certain U.S. states.

In Indonesia, the government is pursuing industry expansion with an emphasis on circularity and midstream integration. President Prabowo Subianto has directed plans to establish a new state-owned enterprise and collaborate with the Danantara sovereign wealth fund to invest in the sector. While the industry has seen growth, with textile and apparel exports valued at approximately $12 billion, officials aim to better connect fabric production, yarn manufacturing, and finishing processes to improve utilization and investment.