Jakarta, Indonesia Sentinel — PT Sri Rejeki Isman Tbk. (Sritex), once celebrated as Southeast Asia’s largest integrated textile manufacturer, has been officially declared bankrupt by the Semarang Commercial Court. This ruling not only affects Sritex but also its subsidiaries, including PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya.
Despite this setback, the Lukminto family, which founded and led the company, continues to maintain a diverse portfolio across various sectors.
The story of Sritex began in the 1960s when founder Lukminto, a Chinese-Indonesian entrepreneur born on June 1, 1946, started his career as a textile trader in Solo, Java. At just 26, he opened his first kiosk in Pasar Klewer, named UD Sri Redjeki.
The business quickly flourished, prompting Lukminto to establish his first manufacturing plant, which ultimately evolved into PT Sri Rejeki Isman.
Throughout its rise, Sritex’s growth was closely tied to Indonesia’s political landscape, particularly during the New Order regime under President Soeharto. Lukminto cultivated strong relationships with government officials, including Harmoko, who served as Minister of Information and was a key figure in the Golkar party.
This connection enabled Sritex to secure lucrative government contracts for supplying uniforms to state institutions and the military, significantly boosting its revenue.
Sritex expanded its operations throughout the 1990s, becoming a dominant player in the textile industry, supplying a variety of products both domestically and internationally.
However, the company faced challenges in recent years, including financial strain exacerbated by the COVID-19 pandemic. Despite diversifying its offerings to include medical supplies, Sritex struggled to maintain its previous success.
The recent bankruptcy declaration reflects the culmination of these financial difficulties. Trading restrictions on Sritex’s stock have resulted in its listing on the Indonesian Stock Exchange’s special watchlist, signaling a critical moment for the once-thriving company. This situation raises questions about the future of Sritex and its ability to navigate this challenging landscape.
While Sritex’s textile empire faces uncertainty, the Lukminto family continues to explore opportunities in other sectors.
The Collapse of Sritex: What Led to the Bankruptcy of Indonesia’s Textile Giant?
They have diversified into hospitality, owning several five-star hotels in Solo, Yogyakarta, and Bali, including Diamond and Grand Orchid. Additionally, the family operates PT Sriwahana Adityakarta, a paper manufacturing company, which was listed on the stock exchange in 2018.
As the story of Sritex unfolds, it serves as a reminder of the volatile nature of business, especially in industries heavily reliant on government ties and market dynamics. The company’s bankruptcy marks a significant shift for the Lukminto family’s legacy, but their influence in various sectors remains intact.
(Becky)
