Jakarta, Indonesia Sentinel — PT Sri Rejeki Isman Tbk (Sritex), one of Indonesia’s largest textile manufacturers, has announced plans to file a judicial review (Peninjauan Kembali) after the Indonesian Supreme Court rejected its bankruptcy appeal. The decision upholds the bankruptcy ruling previously issued by the Semarang Commercial Court.
In an official statement to the Indonesia Stock Exchange (IDX), Sritex Corporate Secretary Welly Salam confirmed that the company had received an official copy of the Supreme Court’s verdict. The ruling, issued under Supreme Court Decision No. 1345 K/Pdt.Sus-Pailit/2024 on January 31, 2025, dismissed Sritex’s appeal and reinforced the company’s bankruptcy status.
“Following this ruling, the company will conduct internal and external consolidation to protect the interests of our stakeholders and prepare for a judicial review,” Welly said on Tuesday, February 4, 2025.
Supreme Court Ruling Upholds Sritex Bankruptcy Decision
The Supreme Court’s verdict denied Sritex’s appeal against the bankruptcy ruling filed by PT Indo Bharat Rayon, a creditor. The panel of justices, led by Chief Justice Hamdi and members Nani Indrawati and Lucas Prakoso, unanimously ruled against Sritex.
“The Supreme Court rejects the cassation request submitted by PT Sri Rejeki Isman Tbk, PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayuda Mandirijaya. The applicants are also required to pay all legal costs amounting to IDR 5,000,000 (approximately $320),” the ruling stated.
Sritex had previously filed the appeal in response to case No. 2/Pdt.Sus-Homologasi/2024/PN Niaga Smg, which declared the company and its subsidiaries bankrupt. The initial ruling was made by the Semarang Commercial Court following a bankruptcy petition by Indo Bharat Rayon.
Sritex’s Response and Next Steps
Sritex has stated that it respects the Supreme Court’s decision and is actively taking measures to address the situation. Management emphasized the company’s commitment to its stakeholders, including creditors, employees, customers, and suppliers.
“We honor the court’s decision and are responding quickly by engaging in internal consolidation and discussions with stakeholders. We have filed for a judicial review to resolve this matter properly and ensure the interests of all parties involved,” Sritex management stated in an official release.
The company also highlighted the significant impact of the bankruptcy ruling on its workforce. Sritex currently employs approximately 14,112 workers directly, with a total of around 50,000 employees within its broader corporate group.
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Implications for Indonesia’s Textile Industry
Sritex has long been a major player in Indonesia’s textile industry, known for producing military uniforms and high-quality fabrics for both domestic and international markets. The bankruptcy decision could have far-reaching implications for the industry, particularly given Sritex’s role in global supply chains.
The company’s financial troubles have been attributed to a combination of factors, including declining demand, supply chain disruptions, and rising production costs. The COVID-19 pandemic further exacerbated these challenges, leading to liquidity issues and mounting debt obligations.
While Sritex remains determined to challenge the ruling, the outcome of the judicial review remains uncertain. If the review fails, the company may face asset liquidation, further impacting Indonesia’s manufacturing sector.
As the case unfolds, investors and industry observers will closely monitor Sritex’s legal strategy and its potential impact on Indonesia’s broader textile and apparel market.
(Becky)
