Published on 28/10/2024 at 08:56 GMT+7 Reading time
One of Southeast Asia’s largest textile manufacturers, PT Sri Rejeki Isman (Sritex), recently responded to its declared bankruptcy by the Semarang District Court in Central Java.
In an official statement, Sritex's management affirmed its respect for the ruling and announced immediate steps toward internal and stakeholder consolidation.
The company is appealing the ruling in hopes of resolving matters equitably, prioritizing the interests of all stakeholders, including creditors, customers, employees, and suppliers, who have supported the firm for over five decades.
Sritex emphasized its commitment to operate responsibly, and the company’s management requested government and stakeholder support to sustain the future of Indonesia’s textile industry..
This bankruptcy ruling comes as a significant development, impacting not only the company’s 14,112 employees but also an additional 50,000 workers within the Sritex Group and various small and medium enterprises dependent on Sritex’s business activities.
The recent court decision annulled a previous homologation ruling from January 2022, which had approved a debt restructuring plan for Sritex and its subsidiaries.
The annulment followed allegations that Sritex and several affiliated companies defaulted on obligations to creditor PT Indo Bharat Rayon.
Consequently, Sritex also faces the threat of delisting from the Indonesia Stock Exchange due to prolonged suspension, significant debt obligations, and a negative equity report in its last financial statement.
Sritex’s standing as a major textile player, once recognized by then President Joko “Jokowi” Widodo, makes this a critical case for Indonesia’s industry landscape.
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