Jakarta, Indonesia Sentinel — Indonesia’s leading textile company, PT Sri Rejeki Isman Tbk (Sritex), has officially been declared bankrupt after the Supreme Court rejected its appeal, reinforcing the Commercial Court’s ruling from the Semarang District Court on October 21, 2024.
After being declared bankrupt, here’s the current conditions of Sritex workers and the company, according to report from DetikFinance.
- 15,000 Workers Affected
Slamet Kaswanto, Coordinator of the Sritex Group Workers Union, revealed that approximately 15,000 employees from four subsidiaries—Sritex, PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya—are directly impacted.
“The Sritex Group has a total of around 50,000 employees. Out of these, about 15,000 are affected across four companies,” Slamet said on Saturday, December 21, 2024.
While no mass layoffs have been announced, the company is struggling to maintain operations due to supply chain disruptions and difficulties in obtaining raw materials.
- Around 3,000 Workers Furloughed
Slamet estimated that around 3,000 employees, primarily those working in yarn spinning, have been sent home. The lack of cotton, a key raw material for yarn production, has brought operations to a halt.
“Most of the workers sent home are involved in spinning, and this is due to the diminishing supply of raw cotton,” he explained.
- Wages Reduced to 25%
Employees who have been sent home are receiving only 25% of their wages, while those who are still actively working at the factory are receiving full pay.
“Those who are sent home are paid 25% of their salaries. However, those still working are paid in full,” Slamet said, adding that salaries and allowances are still being disbursed on time.
- Production at a Standstill
Production at Sritex has largely stopped due to the company’s inability to import raw materials amid the bankruptcy proceedings. Slamet stated that this issue dates back to 2020, long before the official bankruptcy ruling.
“Even before the bankruptcy verdict from the Semarang court, operations were already disrupted due to limited raw material supplies,” he said.
The ongoing legal status prevents the company from obtaining a ‘going concern‘ declaration, which would allow it to continue operating normally, including securing import permits for essential raw materials.
Hope for Resolution
Following the Supreme Court’s rejection of Sritex’s appeal, the company has urged employees to remain calm and focused while it pursues a judicial review.
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Workers’ unions are advocating for the bankruptcy status to be reversed and replaced with a debt restructuring agreement. This approach, they argue, would ensure business continuity, preserve jobs, and enable debt repayment.
“We hope the focus will shift towards a ‘going concern’ resolution rather than asset liquidation. This would mean continued employment, stable wages, and economic security for workers,” Slamet emphasized.
After Sritex was declared bankrupt, the fate of one of Indonesia’s largest textile producers now hinges on the outcome of the judicial review. While also hoping for potential intervention from investors or the government to stabilize operations and secure the livelihoods of thousands of affected workers.
(Raidi/Agung)
