PT Bank Negara Indonesia (Persero) Tbk. (BNI) recently addressed the implications of the bankruptcy ruling against PT Sri Rejeki Isman Tbk. (Sritex) by the Semarang Commercial Court. As of June 30, 2024, BNI has provided a long-term loan to Sritex amounting to $23,807,159, which translates to approximately Rp389.8 billion based on the exchange rate of Rp16,375 per US dollar.

BNI's Corporate Secretary, Okki Rushartomo, emphasized that the bank is closely monitoring the developments surrounding Sritex’s bankruptcy status. BNI is coordinating with the government, particularly the Ministry of State-Owned Enterprises and the Ministry of Finance, to discuss subsequent steps. This proactive approach underscores BNI's commitment to managing risks associated with the situation.

In response to the bankruptcy declaration, Rushartomo mentioned that BNI respects the ongoing legal process and the recent appeal filed by Sritex. Currently, BNI's asset quality remains robust, highlighted by a decrease in the loan-to-risk ratio from 14.4% to 11.8% over the nine months ending in September 2024. Additionally, the nonperforming loan (NPL) ratio improved, falling to 2% from 2.3% during the same period last year.

Despite the challenges posed by Sritex's financial troubles, BNI maintains a prudent risk management strategy. Rushartomo expressed confidence that any adverse impact on the bank's profits will be limited, thanks to their strong reserve ratios.

Sritex's creditors are facing uncertainty following the court's decision. As of June 2024, Sritex had short-term bank debts of $11.36 million and long-term bank obligations amounting to $809.99 million. This ruling was a consequence of a lawsuit filed by PT Indo Bharat Rayon against Sritex and its subsidiaries, citing failures in meeting payment obligations.

Post-bankruptcy, Sritex still owes Rp101.3 billion to Indo Bharat Rayon, which constitutes a minor portion (0.38%) of Sritex's total liabilities as of June 30, 2024. Trioksa Siahaan, Head of Research at LPPI, indicated that the effects of Sritex's bankruptcy on banking performance hinge on two primary factors: the size of the bank's credit portfolio linked to Sritex and whether adequate reserves have been established.

Siahaan further noted that, thus far, the banking sector remains stable and manageable, though it is essential to take precautions to prevent similar occurrences in the future. He recommended that banks evaluate their credit portfolios with Sritex to assess recovery rates post-collateral.

On a broader scale, Siahaan pointed out that the textile industry's outlook is challenging, particularly due to the influx of textile imports from countries like China and India. This trend could hinder domestic textile expansion, potentially leading to a slowdown in textile-related lending.

BISNIS.COM