Indonesia Pushes for Sritex to Continue Operations Despite Bankruptcy Ruling
Indonesian Textile Giant Faces Bankruptcy, Government Steps In to Save Jobs
Jakarta – A major Indonesian textile manufacturer, PT Sri Rejeki Isman Tbk (Sritex), has been declared bankrupt by the Semarang Commercial Court, despite an appeal. While the ruling stands, the Indonesian government is actively working to ensure the company’s continued operation and protect thousands of jobs.
Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized the government’s commitment to keeping Sritex running. “The situation today is the same as yesterday, meaning the company is still in the process of appeal. The government is pushing for the company’s continued operation,” Hartarto told reporters in Jakarta.
He stressed the importance of maintaining Sritex’s “going concern” status, urging the company’s management to prioritize production.Hartarto also called on PT Bank Negara Indonesia (BNI), Sritex’s primary creditor, to collaborate with othre creditors in supporting the government’s efforts to save the company.
“We encourage BNI, as the main creditor, to lead other creditors in agreeing with the government’s plan to protect jobs,” Hartarto said.
The government’s focus on preserving jobs highlights the meaningful role Sritex plays in Indonesia’s economy. The company employs thousands of workers, and its closure would have a ripple effect on the local community.
Modernization as a Path forward
While working to save Sritex, the government is also encouraging Indonesian textile industries to embrace technological advancements. Hartarto believes that adopting modern technology can boost the sector’s competitiveness.”Technological advancements are crucial. We see that industries, including textiles, located in special economic zones like Kendal, are still exporting well. They are using the latest machinery,” Hartarto explained.
To support this modernization drive, the government is offering a 5% interest rate subsidy on investment loans for labor-intensive industries.This initiative aims to help companies replace outdated machinery and improve efficiency.
“The government will subsidize 5% of the interest rate. If a bank provides a loan of Rp 500 million to Rp 10 billion, with an interest rate of 9-11%, the industry will receive a 5% discount from the government, effectively paying only 6%,” Hartarto elaborated.
This program targets labor-intensive sectors such as textiles, garments, furniture, footwear, and food and beverage industries. The government is currently finalizing regulations to implement this support program.
The government’s proactive approach to the Sritex situation and its broader push for modernization in the textile industry demonstrate its commitment to both economic stability and job security in Indonesia.
Indonesian Textile Giant Faces Bankruptcy, Goverment Steps In to Save Jobs
Jakarta – A major indonesian textile manufacturer, PT Sri Rejeki Isman Tbk (Sritex), has been declared bankrupt by the Semarang Commercial Court, despite an appeal. While the ruling stands,the Indonesian government is actively working to ensure the company’s continued operation adn protect thousands of jobs.
Coordinating Minister for Economic affairs Airlangga Hartarto emphasized the government’s commitment to keeping Sritex running. “The situation today is the same as yesterday, meaning the company is still in the process of appeal. The government is pushing for the company’s continued operation,” Hartarto told reporters in Jakarta.
He stressed the importance of maintaining Sritex’s “going concern” status, urging the company’s management to prioritize production. Hartarto also called on PT Bank Negara Indonesia (BNI), sritex’s primary creditor, to collaborate with other creditors in supporting the government’s efforts to save the company.
“We encourage BNI, as the main creditor, to lead other creditors in agreeing with the government’s plan to protect jobs,” Hartarto said.
The government’s focus on preserving jobs highlights the meaningful role Sritex plays in Indonesia’s economy. The company employs thousands of workers, and its closure would have a ripple effect on the local community.
Modernization as a Path Forward
While working to save Sritex, the government is also encouraging Indonesian textile industries to embrace technological advancements. Hartarto believes that adopting modern technology can boost the sector’s competitiveness. “Technological advancements are crucial. We see that industries, including textiles, located in special economic zones like Kendal, are still exporting well. They are using the latest machinery,” Hartarto explained.
To support this modernization drive, the government is offering a 5% interest rate subsidy on investment loans for labour-intensive industries. This initiative aims to help companies replace outdated machinery and improve efficiency.
“The government will subsidize 5% of the interest rate. If a bank provides a loan of Rp 500 million to Rp 10 billion, with an interest rate of 9-11%, the industry will receive a 5% discount from the government, effectively paying only 6%,” Hartarto elaborated.
This program targets labor-intensive sectors such as textiles, garments, furniture, footwear, and food and beverage industries. The government is currently finalizing regulations to implement this support program.
The government’s proactive approach to the Sritex situation and its broader push for modernization in the textile industry demonstrate its commitment to both economic stability and job security in Indonesia.