Jakarta, Indonesia Sentinel — The Indonesian Ministry of Manpower (Kemnaker) has stated that 11,000 PT Sri Rejeki Isman Tbk (Sritex) employees affected by layoffs has yet to receive severance payments, long-service awards, and holiday allowances (THR) for . The Minister cited the ongoing asset liquidation process by court-appointed administrators as the reason for the delay.
During a parliamentary hearing with Commission IX of the House of Representatives on Tuesday (March 11, 2025), Minister of Manpower Yassierli confirmed that Sritex had not yet paid several entitlements to nearly 11,000 dismissed workers.
He clarified that the company had only paid wages up until February 2025. With Sritex officially ceasing operations on March 1, 2025, severance and holiday bonuses are pending until assets are sold.
“What remains unpaid are severance, long-service awards, and compensation for other entitlements, which will be settled from the proceeds of the boedel asset liquidation,” Yassierli said, as reported by CNN Indonesia.
Indonesian bankruptcy law states once a company is declared bankrupt by a commercial court, all control is transferred to court-appointed administrators. These assets, known as boedel, then fall under the responsibility of court-appointed administrators.
Therefore, all financial obligations, including severance payments, are now the responsibility of the administrators as Sritex has no longer have control over the company.
Pension and Unemployment Benefits Prioritized
Yassierli emphasized that the government is currently prioritizing the disbursement of old-age savings (JHT) and unemployment benefits (JKP), hoping workers can receive their funds before Eid al-Fitr 2025.
As of March 10, 2025, JHT benefits had been distributed to 3,544 out of 4,539 applicants, while cash assistance under JKP had reached 1,888 recipients from 2,776 applications.
“We are working to ensure that these benefits are available before Eid, with a significant number of workers receiving the assistance,” Yassierli added.
Regarding severance payments, long-service awards, and holiday allowances, the minister expressed hope that these payments would be finalized before Eid 2025.
Government Plans to Rehire Sritex Workers
The Ministry of Manpower is also conducting a reassessment of Sritex employees imapcted by layoffs to facilitate their reemployment.
Yassierli stated that this initiative is being carried out in collaboration with Coordinating Minister for Economic Affairs Airlangga Hartarto. The government is closely monitoring the administrators’ commitment to rehiring former Sritex workers.
“We are in constant coordination with the Coordinating Ministry for Economic Affairs and the administrators to collect data on affected workers, aiming to facilitate their reemployment,” Yassierli said during the hearing.
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He revealed that the administrators have committed to rehiring former Sritex employees by leasing out company assets. The minister believes that several pieces of equipment can still be utilized under a leasing scheme.
The Ministry of Manpower hopes that leasing these assets to new investors will allow thousands of Sritex workers to regain employment. The ministry is also maintaining close communication with labor unions.
“This is a corporate action, and we will await the administrators’ execution of the plan,” Yassierli stated.
“We continue to coordinate with labor unions to identify workers willing to return to work and determine the next steps,” he concluded.
(Raidi/Agung)
