Jakarta, Indonesia Sentinel — PT Sri Rejeki Isman Tbk (SRIL) or Sritex, one of Indonesia’s largest textile companies, was officially declared bankrupt by the Semarang Commercial Court on October 24, 2024. The ruling was issued under case number 2/Pdt.Sus-Homologasi/2024/PN Niaga Smg, marking a significant downfall for the company that once dominated Indonesia’s textile industry.
Despite its suspension from trading on the Indonesia Stock Exchange (IDX) since May 18, 2021, many public shareholders still hold a considerable stake in Sritex. According to the company’s shareholder report as of September 30, 2024, the public holds 8.16 billion shares, representing 39.89% of the company. PT Huddleston Indonesia, the controlling shareholder, owns 12.07 billion shares, or 59.03%.
Other significant shareholders include second-generation members of the Lukminto family, the company’s founding family, with Iwan Setiawan Lukminto and Iwan Kurniawan Lukminto each holding 0.53% and 0.52%, respectively. The remaining shares are held by other members of the Lukminto family.
The ruling could have severe consequences for the shareholders, particularly those from the public sector, who are now at risk of significant financial losses. If the IDX decides to delist SRIL due to its prolonged suspension and bankruptcy, these shareholders would have limited options to sell or recover their investments.
The court’s decision came after Sritex and its subsidiaries—PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya—failed to meet their payment obligations to PT Indo Bharat Rayon. This default follows a January 25, 2022, Homologation ruling, which had aimed to settle the company’s debts.
In addition to declaring SRIL bankrupt, the court voided the earlier Homologation ruling that had approved a debt restructuring plan for the company. This latest development signals the end of Sritex’s efforts to navigate its mounting financial troubles, which have plagued the company for years.
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Founded more than 50 years ago by H.M. Lukminto, a Chinese-Indonesian entrepreneur, Sritex grew into a prominent textile manufacturer in Indonesia. However, despite multiple attempts by the Lukminto family to rescue the company, Sritex struggled to survive, burdened by rising debts and financial instability.
As of September 2022, SRIL’s total liabilities amounted to $1.6 billion, equivalent to Rp 24.66 trillion. The majority of these debts are interest-bearing, including bank loans and bonds, which significantly impacted the company’s financial health. With the court’s bankruptcy ruling, Sritex, once a symbol of Indonesian industrial success, is now on the verge of fading into history.
(Becky)
