Jakarta, Indonesia Sentinel — Labor unions in Indonesia have praised President Prabowo Subianto for his decisive action in safeguarding jobs at PT Sritex from massive layoffs, as the textile company recently declared bankrupt. Acting quickly, Prabowo directed four ministries to work together to prevent layoffs affecting 20,000 employees at the company.
The coordinated effort includes the Ministry of Industry, Ministry of Finance, Ministry of State-Owned Enterprises, and Ministry of Manpower. These ministries are tasked with evaluating possible solutions and establishing a recovery framework for PT Sritex.
Jumhur Hidayat, Chairman of the All Indonesian Workers Union Confederation (KSPSI), commended Prabowo for his proactive approach in mobilizing the ministries to prevent massive layoffs at PT Sritex. “I appreciate President Prabowo’s swift response in ordering his ministers to address the crisis at PT Sritex, where as many as 20,000 jobs are on the line,” Jumhur stated on Friday, November 1, 2024.
Jumhur also highlighted the broader social impact of these potential layoffs. “If 20,000 workers lose their jobs, that impacts nearly 100,000 people, given the average Indonesian family consists of about five members,” he explained. “President Prabowo’s intervention is not just about saving jobs, but about saving families from falling into poverty.”
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The union leader also expressed optimism that Prabowo’s responsiveness to this crisis signals a broader commitment to addressing economic challenges that affect the working class. “I hope President Prabowo continues to act swiftly in other areas as well, especially given the number of economic policies that have impacted lower-income communities,” Jumhur added.
PT Sritex was declared bankrupt by the Semarang Commercial Court under case number 2/Pdt.Sus-Homologasi/2024/PN Niaga Smg. The court determined that PT Sritex had failed to meet its payment obligations to PT Indo Bharat Rayon, the filing party, following a homologation ruling on January 25, 2022.
Jumhur underscored that the government’s intervention is vital not only for PT Sritex but for the broader textile industry. “This mitigation effort goes beyond PT Sritex; it’s about the entire textile industry. The goal isn’t just to pump money into these businesses but to set up mechanisms to revive factories and stabilize markets, allowing the industry to regain momentum,” Jumhur concluded.
(Raidi/Agung)
