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Government Asks Sritex to Continue Production
News Desk (The Jakarta Post) November 1, 2024
Workers leave a PT Sri Rejeki Isman (Sritex) factory in Sukoharjo, Central Java, on Oct. 24, 2024. (Antara Foto/Mohammad Ayudha)
The government has asked textile company Sri Rejeki Isman (Sritex) to resume production even though it was recently declared bankrupt by a Semarang court.
"Regarding Sritex, the government is indeed concerned. Layoffs should not happen. We are also asking Sritex to keep producing as usual," Manpower Minister Yassierli said at the Presidential Palace in Jakarta on Wednesday, as quoted by kompas.com.
"We also ask all employees to remain calm because the government will provide the best solution. The current situation is still in the legal process, and the steps taken so far have been very good in my opinion, and God willing, there will be no problems."
Yassierli said President Prabowo Subianto had specifically requested that there be no layoffs to protect Sritex’s around 50,000 employees.
"We will not let [any layoffs] happen," Yasserli said.
This decision was made after President Prabowo Subianto met with Coordinating Economic Minister Airlangga Hartanto, Finance Minister Sri Mulyani Indrawati and Yassierli on Tuesday to discuss the issue.
Prabowo has instructed the Industry Ministry, Manpower Ministry, Finance Ministry, and State-Owned Enterprises (SOEs) Ministry to explore various options to save Sritex.
Sritex, the largest textile company in Southeast Asia, was declared bankrupt by the Semarang Commercial Court on Oct. 23, 2024, in response to a petition by Indo Bharta Rayon.
The respondents included Sritex and its subsidiaries Sinar Pantja Djaja, Bitratex Industries, and Primayudha Mandirijaya, all of whom were found negligent in meeting their payment obligations in a decision dated Jan. 25, 2022.
In response, Sritex's management has filed an appeal and is seeking government support to sustain its operations.
The Industry Ministry’s chemical, textile and miscellaneous products director general Reni Yanita said the ministry would hold a follow-up discussion with the other ministries on possible rescue schemes.
"Options like emergency funds or incentives are on the table, but we need to determine the best model for implementation," she said in Jakarta on Monday, as quoted by tempo.co.
Source: www.thejakartapost.com