Jakarta. Textile manufacturer Sri Rejeki Isman (Sritex) responded to the Semarang Commercial Court's Oct. 21 bankruptcy ruling, which declared the company and four key subsidiaries bankrupt after a creditor nullified a prior debt restructuring deal. Sritex has filed for cassation and assured stakeholders that operations will remain unaffected.

In an official statement on Friday, Sritex affirmed its respect for the ruling while emphasizing its commitment to resolving the legal matter swiftly. The company promptly began internal consolidation efforts to ensure continuity and is actively consulting with its stakeholders, which include creditors, suppliers, and employees. 

“Today, we have filed for cassation to conclude this matter responsibly and uphold the interests of all stakeholders,” Sritex said, reiterating its dedication to minimizing any disruption caused by the court’s decision.

Sritex’s Human Resources General Manager, Haryo Ngadiyono, clarified that despite the court's ruling, the company’s core operations, including production schedules, remain unaffected. “Our factories continue to operate normally across three shifts, and we urge employees not to be distracted by this news,” Haryo said in a meeting with local labor officials. 

He further stressed that the bankruptcy ruling does not stem from internal financial distress but rather from legal action taken by a third-party creditor, which has no bearing on day-to-day activities at Sritex’s production facilities.

“This ruling does not mean we are insolvent. Our company’s assets and resources are intact, and we remain a viable business,” he affirmed.

The court’s decision affects four Sritex subsidiaries located in different parts of Central Java, with approximately 15,000 employees directly impacted. However, Sritex maintains additional subsidiaries beyond these four companies. Haryo assured employees that the management has conducted extensive briefings, requesting their ongoing dedication while the legal process is underway. 

As Sritex navigates these challenges, the Indonesian government has signaled its support, prioritizing measures to protect the company’s workforce. Industry Minister Agus Gumiwang Kartasasmita revealed that President Prabowo Subianto has tasked the Industry Ministry, Finance Ministry, State-Owned Enterprises Ministry, and Manpower Ministry to coordinate and devise strategies to help Sritex and its employees. Agus said that the government’s focus is to prevent layoffs and maintain operational stability. 

“The President has directed us to look into all possible options to save Sritex, as it is essential to Indonesia’s textile industry,” Agus noted.

The Manpower Ministry also issued a statement urging Sritex to avoid layoffs until the cassation process is complete. Director-General of Industrial Relations Indah Anggoro Putri said that the company should prioritize constructive dialogue with labor unions and develop interim solutions. 

“We request that Sritex refrain from rushing any layoffs, as the legal process is still ongoing,” Indah said, adding that the ministry is closely monitoring the situation to ensure workers’ welfare.

Sritex, founded 58 years ago, has grown to become one of Southeast Asia’s largest textile manufacturers, significantly impacting the local economy in Central Java. Over the years, the company has built a workforce of approximately 50,000 employees and established partnerships with numerous small and medium enterprises (SMEs) that rely on its operations.

With Sritex’s appeal for cassation now underway, the company has urged all parties involved to exercise patience as it works toward a resolution. The management also reiterated its hope that, with government backing, Sritex can continue contributing to the nation’s textile industry for years to come.
 

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