Jakarta, Indonesia Sentinel — Indonesia’s Director General of Customs (Beacukai), Askolani, addressed the ongoing suspension of import and export activities by textile giant PT Sri Rejeki Isman Tbk (Sritex), following the company’s bankruptcy declaration. Askolani emphasized that the matter is now fully in the hands of court-appointed bankruptcy curators.
“The import-export operations of Sritex are under the authority of the bankruptcy curators. We are simply following their lead, as we have no jurisdiction over the matter,” Askolani stated at the Directorate General of Customs office in East Jakarta on Thursday November 14, as reported by Tempo.
When asked about any communication with the curators, Askolani refrained from providing details, stressing that his office will respect any forthcoming decisions. “It’s their domain. We must respect the legal process. The curators have full authority, so we will abide by their decisions,” he added.
Import-Export Freeze and Operational Halt
The Commercial Court of Semarang appointed four bankruptcy curators and one supervising judge to manage Sritex’s bankruptcy proceedings. Since the company was declared bankrupt, all of Sritex’s assets have been placed under the control of these administrators.
Sritex’s CEO, Iwan Setiawan Lukminto, revealed that the freeze on operational permits has severely disrupted the company’s activities. Export and import licenses, along with the company’s bank accounts, have been frozen as part of the liquidation process.
This has resulted in the inability to ship products to buyers or procure raw materials, thereby halting normal operations. Lukminto noted that Sritex’s current stockpile of raw materials is only sufficient for three more months of production.
As a consequence, Sritex has recently temporarily suspend 2,500 employees due to a shortage of raw materials needed for manufacturing.
Supply Shortages Force Indonesia’s Sritex to Temporarily Lay Off Thousands of Workers
“The number of employees temporarily laid off will continue to rise if the administrators and supervising judge do not authorize the resumption of business operations,” Lukminto stated during a press conference at the Ministry of Manpower on Wednesday, October 13, 2024.
Appeal for Operational Flexibility
Lukminto urged the curators and the supervising judge to allow the flow of goods in and out of the factory. He underscored the importance of continuing import and export activities to sustain the livelihoods of Sritex’s tens of thousands of employees.
The government, in response, has announced plans to coordinate with the curators overseeing Sritex bankruptcy case. The objective is to facilitate the company’s ability to import raw materials and export its products, potentially mitigating the impact on the workforce.
This coordination will involve four ministries: the Ministry of Manpower, the Ministry of Trade, the Ministry of Finance, and the Ministry of State-Owned Enterprises. The government aims to ensure that Sritex can resume limited operations to protect jobs and prevent layoffs.
(Raidi/Agung)
