According to Kartasasmita, the government's current priority is to shield PT Sritex's employees from layoffs.
"The government will immediately take steps to help the company continue its operation and save its workers," the minister informed in a statement released by his office on Friday.
He added that President Prabowo Subianto has ordered the ministers of industry, finance, state-owned enterprises, and manpower to review options and schemes to save Sritex.
"These rescue options and schemes will be submitted as soon as possible after the four ministries have finished formulating the method," he informed.
On Wednesday (October 23, 2024), granting the request of one of the textile company's creditors, the Semarang Commercial Court declared PT Sritex bankrupt.
One of PT Sritex's debtors, PT Indo Bharat Rayon, filed a request to cancel a reconciliation agreement reached in 2022 to postpone debt payment obligations (PKPU).
"Granted the applicant's request. Canceled the PKPU reconciliation plan in January 2022," spokesperson of the Semarang Commercial Court, Haruno Patriadi, said.
In January 2022, PT Sritex was sued by one of its debtors, CV Prima Karya, that filed for a suspension of debt payment obligations.
The Semarang Commercial Court granted the PKPU lawsuit against PT Sritex and three other textile companies.
Later, PT Sritex was sued by PT Indo Bharat Rayon for failing to fulfill the agreed debt payment obligations.
Sritex was established in 1966 in Sukoharjo, Central Java. The company is well known for its export products, including as a manufacturer of military uniforms for several countries.
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Translator: Melalusa Susthira K, Resinta Sulistiyandari
Editor: Rahmad Nasution
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