Uncovering Structural Barriers to Textile-to-Textile Recycling of Post-Industrial Polyester Waste: An ISM–MICMAC Analysis

Despite the rapid growth of global polyester production over the past two decades, the transition toward circular textile systems remains limited, particularly in emerging economies where industrial waste streams hold significant untapped potential for closed-loop recycling. This study investigates the structural barriers to textile-to-textile (T2T) recycling of post-industrial polyester waste in Indonesia, employing an integrated ISM–MICMAC approach and following expert-based content validation using the IOC. From an initial set of sixteen literature-derived barriers, nine core variables were retained for structural analysis. The results reveal that a lack of regulatory frameworks and limited fiscal incentives emerge as foundational drivers shaping technological readiness and stakeholder collaboration. These factors subsequently influence operational conditions, including collection, sorting, traceability, and standardization, ultimately affecting feedstock quality and availability. The findings further highlight that reliance on lower-value recovery pathways constrains the retention of material value, reflecting structural misalignment within the recycling system rather than material limitations. Accordingly, effective interventions should be staged and coordinated, prioritizing stronger regulatory frameworks and targeted fiscal incentives to support technological development and cross-sector collaboration. This study contributes to circular economy research by advancing a system-level understanding of the hierarchical and structural relationships among barriers and providing context-specific insights to support scalable T2T recycling systems in emerging economies.