Jakarta, Indonesia Sentinel — Indonesia’s leading textile manufacturer, Sritex, will officially cease operations on March 1, 2025, following a bankruptcy ruling, leading to mass layoffs affecting thousands of workers.
A Semarang district court declared Sritex bankrupt in late 2024, placing the company under the management of court-appointed administrators. Despite Government effort to save Srtiex’s from bankruptcy and workers layoff, the administrator decide otherwise.
The decision has triggered widespread job losses, particularly in Sukoharjo, where the company’s largest production facilities are located.
8,400 Workers in Sukoharjo Laid Off
The Sukoharjo Industry and Manpower Office (Disperinaker) confirmed that 8,400 Sritex employees in the district were terminated as of February 26, 2025, with their final working day set for February 28.
“After negotiations, a final agreement was reached. The layoffs were decided on February 26, but workers will remain employed until February 28,” said Sukoharjo’s Disperinaker head, Sumarno, as reported by CNN Indonesia on Thursday (February 27).
“By March 1, operations will be completely halted, and Sritex will be fully under the administrators’ control,” He added.
Under Indonesian bankruptcy law, once a company is declared bankrupt by a commercial court, all control is transferred to court-appointed administrators. Meanwhile, the Laid-off employees are entitled to severance pay, old-age benefits, and unemployment insurance.
“All financial obligations, including severance payments, are now the responsibility of the administrators. Sritex no longer has control over the company,” Sumarno stated.
To mitigate the impact, the Sukoharjo government has facilitated job placements by preparing approximately 8,000 new employment opportunities in other local companies.
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Over 10,600 Workers Affected Across Sritex Group
The bankruptcy of Indonesian textile giant Sritex Group has led to mass layoffs across its subsidiaries. According to information from the administrators, a total of 10,669 employees across the Sritex Group lose their jobs in 2025. This figure includes workers from Sritex’s subsidiaries, such as PT Bitratex Semarang, PT Primayudha Boyolali, PT Sinar Pantja Djaja Semarang, and PT Sritex Sukoharjo.
The collapse of Sritex marks a significant downturn for Indonesia’s textile industry, raising concerns about the broader economic impact and the future of thousands of displaced workers.
(Raidi/Agung)
