Jakarta, Indonesia Sentinel — The Indonesian government is working to rescue textile company PT Sri Rejeki Isman (Sritex), following a recent bankruptcy ruling by the Semarang District Court. Minister of Industry (Kemenperin) Agus Gumiwang Kartasasmita confirmed on Friday, October 25, 2024, that President Prabowo Subianto has ordered urgent action and instructed four key ministries to explore potential rescue options for the company.
“President Prabowo has directed the Ministry of Industry, Ministry of Finance, Ministry of State-Owned Enterprises (SOEs), and Ministry of Manpower to immediately assess various options and strategies to save Sritex,” Minister Agus stated in a written announcement.
Agus Emphasized, safeguarding the jobs of Sritex workforce which comprises around 50,000 employees, remains the government’s priority.
The bankruptcy has raised concerns about potential layoffs on a massive scale. “The government is preparing swift actions to ensure the company continues its operations, so employees can avoid layoffs. Once these four ministries finalize their recommendations, we will announce the proposed rescue plans as soon as possible,” said Minister Agus.
Crisis in the Textile Sector
The bankruptcy of Sritex highlights broader struggles within Indonesia’s textile industry, which has been hit hard by declining demand and rising operational costs. According to Ristadi, President of the National Workers Confederation (KSPN), the challenges facing Sritex mirror those experienced by many other factories across the country.
“The situation isn’t unique to Sritex. Many other factories are grappling with similar issues, like heavy debt, strained cash flow, and a drop in productivity by as much as 50%,” Ristadi said as reported by Detik on Saturday, October 26. He called on the government to extend similar support to other textile firms, noting that Sritex’s high-profile status has merely brought more attention to the crisis.
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Ristadi emphasized the need for government intervention across the sector, not just for Sritex employees but for workers nationwide. “I hope the government will also look at helping other textile companies in the same way it’s assisting Sritex,” he added.
Sritex Declared Bankruptcy
Sritex was declared bankrupt in a recent decision by the Semarang District Court in case number 2/Pdt.Sus-Homologasi/2024/PN Niaga Smg. The bankruptcy ruling has raised concerns over potential layoffs that could affect tens of thousands of Sritex employees.
President Prabowo’s directive comes amid growing scrutiny of Indonesia’s textile sector, which faces mounting challenges from global market shifts, operational pressures, and financing struggles. This intervention highlights the importance of protecting Indonesia’s industrial workforce while stabilizing one of the country’s significant sectors.
(Raidi/Agung)
