Jakarta, Indonesia Sentinel — Sritex, once a leading textile company in Indonesia known for its extensive products exports worldwide, was declared bankrupt by the Semarang District Court on Monday, October 21, 2024. This decision marks the end of an era for PT Sri Rejeki Isman Tbk (Sritex), a company that had long been a powerhouse in Indonesian textile industry.
Founded in 1966 in Solo by H.M. Lukminto, Sritex officially registered as a limited liability company with the Ministry of Trade in 1978. Over the decades, the company survived numerous challenges, including Indonesia’s severe 1998 financial crisis.
However, speculation about its financial troubles has grown since June 2024, when the Confederation of Nusantara Workers’ Unions (KSPN) reported that 13,800 textile workers had been laid off, signaling turbulence in the broader textile industry and foreshadowing Sritex’s struggles to stay afloat.
Sritex’s Legacy of Export Success
Before its bankruptcy, Sritex dominated Indonesia’s domestic textile market with a diverse range of high-quality products. The company became a significant player in international trade, exporting a vast majority of its goods and establishing a strong reputation overseas.
Sritex exports, primarily Textile Products (TPT), included yarn, finished fabric, and ready-made garments. According to Sindonews, exports accounted for 60% of Sritex’s revenue in 2022. Sritex President Iwan Setiawan Lukminto noted that the company was shipping around 600 containers of textile products per month to international markets.
Restore Ecosystem, Mount Ciremai Announces Temporary Closure
Sritex’s largest export destination was Sweden, with purchases totaling $611,000, followed by Egypt at $475,000, Bangladesh at $351,000, and Japan at $268,000. Other regular buyers included the United States, Argentina, Brazil, Dominican Republic, Egypt, Mexico, Turkey, Portugal, Poland, India, Qatar, the United Arab Emirates, South Korea, Spain, Malaysia, Thailand, and Jordan.
This development highlights the growing pressures on Indonesia’s textile industry, which has struggled to keep pace with global competition and shifting market demands. Sritex’s bankruptcy reflects a significant shift in the nation’s manufacturing landscape, impacting thousands of workers and signaling challenges for other major textile producers in the region.
(Raidi/Agung)
