The government is devising a series of measures to ensure PT Sri Rejeki Isman (Sritex), Southeast Asia’s largest textile company, able to continue operations despite being declared bankrupt by the Semarang Commercial Court.
Coordinating Minister for the Economy, Airlangga Hartarto, has announced that the government plans to open discussions with the curators currently handling Sritex’s bankruptcy process to maintain the company’s operational continuity.
“The government will engage with the curators and coordinate with the Directorate General of Customs and Excise of the Ministry of Finance. This step is crucial to keep Sritex’s exports going, even under bankruptcy status,” Airlangga said in Jakarta on Wednesday, October 30, 2024.
He emphasized that this move is essential to keep the factory running so that workers can continue their employment.
The government is also considering appealing to the Supreme Court, as an additional legal pathway for any parties wishing to request a review of the bankruptcy ruling.
“We will monitor the ongoing legal proceedings while ensuring that Sritex’s operations remain uninterrupted,” Airlangga said.
Meanwhile, Minister of Micro, Small, and Medium Enterprises (MSME) Maman Abdurrahman confirmed that the measures to save Sritex follows President Prabowo Subianto’s directive, understanding the company’s significance for thousands of workers and the national textile industry.
“It’s important to remember that many workers in the textile sector and other small and medium enterprises rely on Sritex,” Maman said, also on Wednesday.
For 58 years, Sritex has been a cornerstone of Indonesia’s textile industry, directly employing around 14,112 individuals and supporting over 50,000 workers within the Sritex Group. Additionally, the company plays a crucial role for numerous small and medium-sized businesses within the country’s textile supply chain.
However, Sritex now faces significant challenges due to a debt load reaching US$1.6 billion (Rp 25.17 trillion) as of March 2024. The company’s latest financial report reveals long-term debt totaling US$848.25 million (Rp 13.27 trillion), with its largest debt owed to PT Bank Central Asia, amounting to US$71.98 million (Rp 1.12 trillion).
With support from the government, these rescue measures are expected to prevent further disruption to the national textile sector and safeguard the livelihoods of thousands of workers who depend on the industry.
