Jakarta. Indonesia Sentinel — Indonesia’s largest textile manufacturer, PT Sri Rejeki Isman Tbk (Sritex), has officially been declared bankrupt following a Supreme Court ruling rejecting an appeal from its owner, Iwan Setiawan Lukminto. This decision, announced two days ago, marks the end of Sritex’s private ownership and transfers control of its assets—valued at approximately IDR 30 trillion—to four appointed curators representing 60 creditors.
From Debt Restructuring to Sritex Bankruptcy
The Supreme Court’s decision upholds a prior ruling by the Semarang Commercial Court, which declared Sritex bankrupt after its failure to adhere to a debt payment agreement. The company’s financial troubles began when it sought a 12-year extension for debt repayment under a homologation deal with its creditors. While Sritex managed to make payments during the first four months, it halted payments to PT IndoBharat, an Indian supplier of rayon, claiming financial difficulties.
PT IndoBharat, which had a claim of IDR 60 billion, initiated the bankruptcy process despite its losses being covered by insurance.
“Sritex could have avoided this bankruptcy if it had adhered to the homologation agreement. This serves as a vital lesson for businesses,” stated Fajar Romi Gumilar, one of the curators now managing the company.
Massive Assets Under the Hammer
With debts amounting to IDR 18 trillion, Sritex’s assets, valued at IDR 30 trillion, are set to be auctioned to satisfy creditors. However, concerns have been raised over whether the auction will yield the full estimated value.
“We will ensure the auction process is transparent and compliant with legal standards so that creditors receive their rightful shares,” emphasized Deni Ardansyah, the lead curator.
Sritex Bankruptcy: Uncertain Future for 50,000 Employees
The bankruptcy has left 50,000 Sritex employees facing an uncertain future. Indonesia’s Ministry of Manpower has pledged to assist affected workers through its Job Loss Insurance (JKP) program and skill training at local vocational centers.
Despite the ruling, Sritex’s Managing Director, Iwan Kurniawan Lukminto, expressed disappointment and announced plans to file a judicial review.
“We will keep fighting—not just for the company but also for the employees who have helped build Sritex into what it is today,” he declared.
Indonesi’s Textile Giant Sritex Declared Bankrupt, Here’s the Company Current Conditions
Revival or Permanent Decline?
Speculation abounds regarding Sritex’s future. While some believe the company could attract new investors and be revitalized, others argue that its breakup and asset liquidation might be the only viable outcome.
“This is an opportunity for strategic investors to see the potential in Indonesia’s textile industry. Sritex’s assets remain valuable, offering a chance to rebuild,” said Nur Hidayat, another appointed curator.
The Supreme Court’s decision closes a chapter in Sritex’s storied history, leaving the future of this legendary textile manufacturer hanging in the balance. As its fate is determined in the coming months, the case highlights the challenges and opportunities in Indonesia’s textile sector.
(Becky)
