Jakarta. Danantara Indonesia is considering establishing a state-owned textile company, with bankrupt and delisted textile giant Sri Rejeki Isman (Sritex) among the potential candidates for a rescue as the sovereign wealth fund seeks to revive labor-intensive industries and create jobs.

Danantara Chief Operating Officer Dony Oskaria said the plan follows President Prabowo Subianto’s directive for the fund to invest in labor-intensive sectors capable of absorbing large numbers of workers. These include textiles, footwear and electronics.

“Danantara is serious about entering the textile sector, with government support and appropriate regulations to ensure a healthy industry. The amount of investment will depend on what is needed as we begin building the textile industry,” Dony said at the Fairmont Hotel in Jakarta on Monday.

Regarding Sritex, Dony said Danantara was weighing several options, including acquiring an existing textile company or establishing a new state-owned enterprise from scratch.

“If Sritex has been affected to the point of shutting down and laying off a large number of employees, then we need to save those jobs as well. But we must fix its business model and make it more organized,” he said.

Danantara has yet to decide which approach to take, with Dony emphasizing that both options remain under consideration.

“We will assess the situation. All options remain open,” he said.

Dony added that Danantara’s planned entry into the textile industry would cover the entire supply chain, from upstream production to midstream processing and downstream manufacturing, rather than focusing solely on finished products.

“We are serious about this because a state-owned textile company could create a large number of jobs. With a market of nearly 300 million people, how can we not produce our own textiles? That is what we are working toward,” he said.

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