Jakarta, Indonesia Sentinel — PT Sri Rejeki Isman Tbk, better known as Sritex, has announced the case regarding salaries of the recent employees temporarily lay off. Sritex confirmed to continue paying salaries to 2,500 employees temporarily laid off due to raw materials shortage following its recent bankruptcy declaration.
Sritex Chairman Iwan Setiawan Lukminto clarified in a press conference alongside Deputy Minister of Manpower (Kemnaker) Immanuel Ebenezer that the affected employees have not been laid off but are instead temporarily suspended from work and will still receive their salaries.
“Employees who have been furloughed will still receive their salaries. Our aim is to resume normal operations as soon as possible so that these workers can return to their jobs,” Iwan stated on Wednesday, November 13, at the Ministry of Manpower office.
Iwan emphasized that the company has not issued any layoffs despite the ongoing bankruptcy proceedings. He reiterated that Sritex is merely temporarily lay off around 2,500 employees due to the unavailability of essential raw materials, which he attributed to administrative hurdles and the freezing of company accounts that have disrupted their supply chain.
“Currently, Sritex has not terminated a single employee. Despite our bankruptcy status, we are committed to retaining all our workers. However, we’ve had to temporarily lay off some due to a lack of raw materials,” Iwan assured.
The company’s future hinges on decisions made by the court-appointed receivers and supervising judge, according to Iwan.
“There’s an urgent need for a going concern decision from the supervising judge. This is crucial for the company’s sustainability,” he explained, noting that the lack of such a decision could potentially lead to layoffs, putting the livelihoods of thousands of workers at risk.
Supply Shortages Force Indonesia’s Sritex to Temporarily Lay Off Thousands of Workers
In response to the rumors surrounding potential layoffs, Deputy Minister Immanuel Ebenezer addressed the purpose of the meeting with Sritex representatives, aiming to dispel misinformation.
“I called this meeting with Sritex after hearing conflicting reports following my visit, which was based on directives from President Prabowo Subianto. The President wanted to ensure that no layoffs were taking place,” said Immanuel.
He further reaffirmed the government’s commitment to safeguarding workers’ rights amidst the company’s financial difficulties. “President Prabowo Subianto is adamant that layoffs are not an option. He is committed to protecting the welfare of workers across the nation,” Immanuel concluded.
The textile sector, a key part of Indonesia’s manufacturing industry, has faced significant challenges due to global supply chain disruptions, affecting companies like Sritex. The company’s struggles reflect broader issues in the industry, highlighting the need for swift judicial decisions to stabilize operations and protect jobs.
(Raidi/Agung)
