Jakarta, Indonesia Sentinel –– The situation at PT Sri Rejeki Isman Tbk (Sritex) has deteriorated sharply following its bankruptcy ruling by the Semarang Commercial Court. With operations stalling and employees uncertain about their future, the textile giant faces mounting challenges.
According to Slamet Kaswanto, coordinator of the Sritex Group Workers Union, the company’s manufacturing facilities are running out of raw materials, and many production machines have ceased operation.
“We are now on the 45th day since the bankruptcy ruling, and signs of going concern are absent. Raw materials are depleting, production has stopped, and employees’ futures are unclear,” Slamet said on Sunday (Dec. 7, 2024).
Financial Strain and Employee Concerns
Adding to the turmoil, Sritex’s corporate bank accounts have reportedly been frozen by court-appointed administrators, raising fears among employees about their salaries. The situation is further exacerbated by the threat of electricity disconnection from PLN due to the frozen accounts.
Slamet expressed disappointment over the curators’ refusal to mediate with the Ministry of Manpower, stating it adds to the workers’ frustrations.
“We are deeply disappointed with the curators. Tens of thousands of employees’ livelihoods are being toyed with, and no one is taking responsibility,” he remarked.
Mounting Liabilities
Before the bankruptcy, Sritex had accumulated substantial debts totaling IDR 14.84 trillion to 30 creditors, including 27 banks and 3 multifinance companies. According to Indonesia’s Financial Services Authority (OJK), Sritex owed IDR 14.64 trillion to banks and IDR 200 billion to multifinance entities. The bankruptcy petition was filed by creditor PT Indo Bharat Rayon, to whom Sritex owed IDR 101.31 billion as of June 2024.
Government and Public Appeal
Slamet called on President Prabowo Subianto to address the crisis urgently, warning of potential mass layoffs and reputational damage to his administration. “If this continues, it will mark a dark chapter in Indonesia’s labor history, with curators seen as complicit in destroying a major industry,” he stated.
An Uncertain Future
Once a leading textile producer, Sritex now grapples with liabilities of USD 1.6 billion (approximately IDR 25.01 trillion) and a capital deficiency of USD -980.56 million as of mid-2024. The workers, who witnessed normal operations before the bankruptcy, remain devastated, seeking clarity and resolution amidst the crisis.
(Becky)
