"Today, I am ensuring no layoffs at Sritex," Gerungan remarked during his visit to Sritex factory in Sukoharjo District, Central Java, on Friday.
According to the deputy minister, the effort to ensure no layoffs at the company was part of a political and moral responsibility of the Manpower Ministry.
Regarding the current furlough of 2,500 Sritex employees, he said that the status differs from being laid off.
"If you are being furloughed, then it means there is nothing to produce. Meanwhile, being laid off means employees are being terminated. The public should know the difference," Gerungan explained.
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Meanwhile, President Director of PT Sritex Iwan Kurniawan Lukminto said that the number of furloughed employees at 2,500 may increase in the near future, considering that Sritex will run out of raw materials in the next three weeks.
"If the supervisory judge does not allow the continuation of the business permit, in the next three weeks, we will run out of raw materials. The number of furloughed employees may increase," he stated.
However, he ensured that the rights of furloughed employees would be fulfilled.
"We will carry out our obligations and will be fighting for no layoffs. However, the decision in the future is beyond our control. Our commitment is pushing for no layoffs," he remarked.
In October, the company was declared bankrupt by Semarang Commercial Court.
Related news: DPR urges govt to prioritize saving Sritex employees from layoffs
Earlier, in January 2022, PT Sritex was sued by one of its debtors, CV Prima Karya, which filed for a suspension of debt payment obligations.
The Semarang Commercial Court granted the Postponement of Debt Payment Obligations (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: Aris Wasita, Resinta Sulistiyandari
Editor: Yuni Arisandy Sinaga
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