Sukoharjo, Central Java. Several lawmakers are considering the formation of a special committee to investigate the recent bankruptcy ruling against Sritex, Indonesia’s largest textile company, which could potentially lead to tens of thousands of job losses.

Members of the House of Representatives' Commission VII on industry and the creative economy revealed the plan during a visit to Sritex’s factory in Sukoharjo Regency, Central Java, on Thursday.

Commission Chairman Saleh Partaonan Daulay said the proposed committee would be responsible for exploring solutions to support Indonesia’s struggling textile industry, with a particular focus on Sritex.

"Based on suggestions from our colleagues, Commission VII will establish a special committee to thoroughly investigate the challenges facing the Indonesian textile industry, especially companies in distress like Sritex," Saleh said during the visit.

He noted the increasingly fierce competition within Indonesia's textile industry, which is one of the largest globally. “Indonesia is home to the world’s fourth-largest textile industry, with a substantial domestic market,” he said.

The committee would also aim to devise strategies to sustain the labor-intensive textile sector and identify practical measures to enhance Indonesia's competitiveness in the global market, according to Saleh.

Sritex CEO Iwan Kurniawan Lukminto acknowledged that the national textile industry has been facing severe difficulties over recent years. He expressed hope that the Supreme Court would accept Sritex’s appeal and overturn the bankruptcy ruling.

The bankruptcy was declared by the Semarang District Court following a lawsuit from creditor Indo Bharat Rayon over unpaid debts. The court’s ruling also nullified a previous debt restructuring agreement with Sritex, prompting the company to file an appeal.

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