The Attorney General’s Office (AGO) has launched a preliminary investigation into suspected corruption surrounding bank loan disbursements to textile giant PT Sri Rejeki Isman (Sritex) that was declared bankrupt in October 2024.

While the probe is still in its early stages, the authorities are focusing on identifying possible criminal elements related to the bank credit given to Sritex.

"Still within a general investigation status regarding the provision of bank credit to Sritex," AGO spokesman, Harli Siregar, said on Thursday, May 1, 2025.

Sritex ceased all operations as of March 1, 2025, following its insolvency. Bankruptcy administrators reported that total claims from creditors had reached a staggering Rp29.8 trillion (US$1.8 billion). The final list of receivables, includes 94 concurrent creditors, 349 preferential creditors, and 22 secured creditors.

Preferential creditors − those granted legal priority in repayment − include several government tax and customs offices, such as the Sukoharjo Tax Office, Surakarta and Semarang Customs Offices, and the Central Java-Yogyakarta Regional Office of Directorate General of Customs and Excise.

Meanwhile, the list of concurrent and secured creditors features claims from various banks and business partners that previously collaborated with the textile manufacturer.

Some financial institutions filed high-value claims, and after reviewing the company’s condition, the creditors' meeting during Sritex’s bankruptcy process resolved to discontinue business operations and proceed with debt settlement.

Following the bankruptcy declaration, the Ministry of Manpower reported that 11,025 employees were laid off in stages between August 2024 and February 2025.