Technically it is a selvedge which is an edge produced on woven fabric during manufacture that prevents it from unraveling, not one that's ideal for a kilt though. Having said that I have at least 10 kilts I've made from the Marton Mills P/V with that type of edge.
Here is the selvedge prior to hemming
And after hemming
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It was machine sewn and unless you're examining it from a few inches you can't tell, also the material is relatively light so the hem isn't bulky
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