PT Sri Rejeki Isman Tbk (Sritex), one of Indonesia’s largest textile companies, officially shut down all its operations in Central Java on March 1, 2025. This closure resulted in more than 10,000 workers losing their jobs, marking the end of Sritex’s nearly six-decade-long journey.

Founded in 1966 by H.M. Lukminto as a small trading business at Pasar Klewer in Solo, Sritex expanded rapidly. The company opened its first printing factory in 1968, producing both plain and colored fabrics. By 1984, Sritex had gained international recognition after securing a contract to manufacture military uniforms for NATO countries and the German army, solidifying its reputation in the global textile industry.

Despite surviving the 1998 financial crisis and achieving significant growth by 2001, Sritex’s financial troubles began to surface in 2021 when the company entered a temporary suspension of debt payment obligations (PKPU) due to a lawsuit filed by creditor CV Prima Karya. This also involved three of its subsidiaries, PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya. The Semarang District Court granted the PKPU status on May 6, 2021, which lasted until January 2022 after a homologation proposal was accepted.

However, Sritex continued to struggle financially. In 2022, the company recorded a capital deficiency of $781.01 million and losses amounting to $395.5 million. Another lawsuit came in 2024 from creditor PT Indo Bharat Rayon due to unresolved debt payments. This led the Semarang District Court to declare Sritex bankrupt in October 2024.

Despite filing for cassation to overturn the bankruptcy ruling, Sritex’s business operations ultimately fell under the control of court-appointed curators. The curators reported several irregularities during the bankruptcy process, including non-cooperation from Sritex’s management, illegal export activities, and ongoing business operations after the company was declared bankrupt, violating Indonesia’s Bankruptcy Law and PKPU Article 24, Section 1.

By February 26, 2025, a letter from the curators confirmed the mass layoffs, detailing the number of affected workers: 8,504 employees from PT Sritex Sukoharjo, 1,065 from PT Bitratex Semarang, 956 from PT Primayuda Boyolali, 40 from PT Sinar Panja Jaya Semarang, and additional layoffs in Bitratex and Sinar Panja Jaya totaling 404 employees.

Sritex’s CEO, Iwan Kurniawan Lukminto, expressed his deep regret over the layoffs, stating his solidarity with the workers. “My heart and thoughts are with our employees, whom I consider family,” he said.

The situation has caught the attention of the government, with President Prabowo Subianto instructing four ministers from the Ministry of Industry, Ministry of Finance, Ministry of State-Owned Enterprises, and Ministry of Manpower to find solutions to save Sritex and prevent further job losses. Minister of Industry Agus Gumiwang Kartasasmita emphasized that the government's priority is to protect the workers from unemployment, with rescue options to be announced once the ministries finalize a plan.

Deputy Minister of Manpower, Immanuel Ebenezer, assured that the government remains committed to the welfare of Sritex employees. Although the matter is now under the curators’ authority, he urged the curators to guarantee that layoffs are avoided. “The curators hold the power now, but we are focused on protecting the workers,” said Immanuel.

Despite these efforts, Sritex's shutdown seems irreversible for now. The future of its 11,000 former employees and the local communities tied to the company’s ecosystem remains uncertain.

PHOTO: ANTARA/MOHAMMAD AYUDHA

This article was created with AI assistance.