Jakarta. State-owned lender Bank Negara Indonesia (BNI) has pledged to help coordinate with other creditors to keep Sri Rejeki Isman (Sritex) operational after the Supreme Court rejected the company’s bankruptcy appeal.

BNI President Director Royke Tumilaar said the bank will continue discussions with the government, Sritex management, and other stakeholders to explore strategic steps for sustaining Sritex’s business. “We will work closely with all relevant parties to ensure the company’s viability,” Royke said in a press release on Friday.

Sritex, one of Indonesia’s largest textile companies, faces significant financial challenges after the Semarang District Court declared it bankrupt in October 2024, following a lawsuit from creditor Indo Bharat Rayon over unpaid debts. The company’s appeal was rejected by the Supreme Court, leaving it with limited legal recourse. CEO Iwan Kurniawan Lukminto has announced plans to request a judicial review, the final legal avenue available.

“We are committed to protecting our workers and the business,” Iwan said, emphasizing the importance of the company’s 50,000 employees, many of whom have been with Sritex for decades. The company is seeking to avoid layoffs during this difficult period.

Founded 58 years ago, Sritex is a major player in Indonesia’s textile industry, supplying military uniforms to NATO countries and employing a large workforce across Central Java. Its bankruptcy has raised concerns over potential job losses and the broader impact on the textile sector, which is vital to Indonesia’s economy.

The government has formed an inter-ministerial team to address the situation and mitigate the effects of the bankruptcy. BNI, meanwhile, has made adequate provisions for potential credit risks related to Sritex, ensuring a balanced approach that takes into account the interests of creditors, shareholders, employees, and the wider community.

Royke is confident that cooperation between all parties would help Sritex navigate this challenging period and support the continued growth of the textile industry in Indonesia.

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