Jakarta. Indonesia's largest textile company, Sri Rejeki Isman, better known as Sritex, is implementing a plan to stabilize its business following a recent bankruptcy ruling, a company executive said on Monday.

The government has pledged support for Sritex’s recovery efforts, which aim to prevent potential layoffs for around 50,000 employees. Earlier in the day, Industry Minister Agus Gumiwang Kartasasmita met with Sritex’s Chief Commissioner, Iwan Setiawan Lukminto, to discuss strategies to safeguard the company.

“We are developing a ‘grand strategy’ to sustain our operations,” Iwan said following the meeting in Jakarta, though he declined to provide specific details. “The minister emphasized that our operations must continue smoothly. All employees, directors, and commissioners must share a spirit of resilience.”

Founded 58 years ago, Sritex has grown to become one of Indonesia's oldest and largest textile companies, with facilities across several cities and regencies in Central Java. The company has also supplied camouflage military uniforms to NATO countries, establishing a global footprint.

On Friday, Minister Agus announced that President Prabowo Subianto had ordered the creation of an inter-ministerial team to develop options and strategies for Sritex’s recovery.

The government’s primary objective is to prevent mass layoffs.

“President Prabowo has instructed the Ministry of Industry, Ministry of Finance, Ministry of State-Owned Enterprises, and Ministry of Manpower to coordinate on options to save Sritex,” Agus said. “The four ministries will formulate a rescue plan and present it as soon as possible.”

The Semarang District Court recently declared Sritex bankrupt after a lawsuit by creditor Indo Bharat Rayo over unpaid debts. The creditor also won a court ruling to annul a prior debt restructuring agreement with Sritex, which has since filed an appeal.

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