The ministry's Acting Director General of Chemical, Pharmaceutical, and Textile Industries, Reni Yanita, stated that these rescue proposals must be discussed with Sritex as well as the Ministry of Finance, the Ministry of SOEs, and the Ministry of Manpower.
"We have a follow-up meeting that is more detailed on the schemes proposed to the government, in this case, perhaps to the Ministry of Finance. As there are four ministers involved, we have to consolidate," Yanita remarked here on Monday.
She revealed that several potential solutions being considered comprised a bailout fund and incentives for Sritex.
"But we will see how the model is compiled," she noted.
She stated that the ministry's intervention aims to protect the workforce and ongoing export commitments.
According to Yanita, Sritex's operations are still running despite being declared bankrupt by the Semarang Commercial Court on Oct 23.
It means that the company continues to fulfill its contractual obligations.
Related news: Sritex bankruptcy: Minister promises to prevent staff layoffs
At a meeting between Minister of Industry Agus Gumiwang Kartasasmita and Sritex's Main Commissioner Iwan S. Lukminto on Monday, the company reported maintaining 65 percent production capacity.
Hence, Yanita emphasized that while government intervention is necessary, the rescue efforts extend beyond Sritex alone.
In the future, the government will also create new policies to prevent similar cases across other industries.
"Sritex is just a case, but for the comprehensive policy, we will learn from this," she concluded.
Sritex and its four key subsidiaries were declared bankrupt after a creditor nullified a prior debt restructuring deal. Sritex has filed for cassation while assuring stakeholders of continued operations. In an official statement on Friday (Oct 25), Sritex affirmed its respect for the ruling while emphasizing its commitment to swift legal resolution.
The company promptly initiated internal consolidation efforts to ensure continuity and is actively consulting with its stakeholders, which include creditors, suppliers, and employees.
The court’s decision affects four Sritex subsidiaries located in different parts of Central Java, with approximately 15 thousand employees directly impacted. However, Sritex maintains additional subsidiaries beyond these four companies.
Related news: Gov't responds to large-scale closure of several textile industries
Translator: Maria Cicilia Galuh Prayudhia, Yashinta Difa
Editor: Yuni Arisandy Sinaga
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