"The government will guarantee Sritex remains operational," Deputy Minister of Manpower Immanuel Ebenezer Gerungan stated during his visit to the company in Sukoharjo, Central Java, on Wednesday.
He urged the labor union to cancel plans for a demonstration in Jakarta involving 10,000 workers.
"I visited them here to suggest they let the government handle the situation," Gerungan noted.
He hinted at positive developments for Sritex's future but did not provide specifics.
Gerungan emphasized that the government is committed to preventing layoffs at Sritex.
"Layoffs are not an option. We are committed to our non-layoff strategy. Regarding the future of the employees, there is no room for negotiation," he emphasized.
He indicated that the current strategy for ensuring Sritex's sustainability is a going concern approach.
"I told the curator that the state is committed to maintaining Sritex's operations. This has become a matter of national interest. Hopefully, positive momentum will build as certainty is achieved soon," Gerungan stated.
Sritex CEO Iwan Kurniawan Lukminto emphasized that this stage does not mark the end of the company.
"We still have a judicial review. This is our spirit to continue working for Sritex," he affirmed.
He also commended Gerungan's fourth visit to his company.
"This shows the government's support for business sustainability in Sritex," he noted.
In October 2024, the Semarang Commercial Court declared the company bankrupt.
In January 2022, Sritex was sued by one of its creditors, 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 Sritex and three other textile companies.
Later, Sritex was sued by PT Indo Bharat Rayon for failing to fulfill the agreed debt payment obligations.
Founded in 1966, the company is renowned for its export products, including military uniforms for several countries.
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Translator: Aris Wasita, Resinta Sulistiyandari
Editor: Anton Santoso
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