Jakarta. The Attorney General’s Office (AGO) has arrested Iwan Setiawan Lukminto, the former president director and chief commissioner of the now-bankrupt textile company Sri Rejeki Isman (Sritex), in connection with an ongoing investigation into suspected corruption involving bank loans granted to the firm.

“Iwan was arrested last night in Solo,” Deputy Attorney General for Special Crimes Febrie Adriansyah.told reporters in Jakarta on Wednesday.

The AGO is currently investigating allegations of state losses tied to potentially unlawful practices in the issuance of credit facilities to Sritex. Harli Siregar, head of the AGO’s Legal Information Center, said prosecutors are still assessing whether the case involves abuse of office or other legal violations.

“We are reviewing various testimonies to determine if there are legal facts pointing to potential wrongdoing that may have caused losses to the state,” Harli said.

Prosecutors are gathering evidence to assess whether criminal offenses were committed in the disbursement of the loans. The investigation follows Sritex’s declaration of bankruptcy in October 2024 and its subsequent shutdown of operations as of March 1, 2025.

The court-appointed receiver overseeing the bankruptcy process reported that the company owed a staggering Rp 29.8 trillion to its creditors. The list includes 94 concurrent creditors, 349 preferred creditors, and 22 secured creditors.

The preferred creditors, those granted priority under the law, include the Sukoharjo tax office, Surakarta and Semarang customs offices, and other state agencies such as the Foreign Investment Tax Office IV.

Among the secured and concurrent creditors are various banks and corporate partners, many of whom filed claims involving substantial amounts.

A creditors’ meeting ultimately decided against continuing Sritex’s business operations, opting instead to proceed with asset liquidation.

The Manpower Ministry reported that 11,025 workers were laid off by Sritex between August 2024 and February 2025, following the company’s financial collapse.