This decision follows the Indonesian giant textile company’s bankruptcy declaration last year due to its difficulties in managing a $1.6 billion debt, as reported by Reuters.
The company confirmed its operational shutdown on February 28, 2025, during a creditors’ meeting related to the bankruptcy, with formal closure occurring the next day. This action came after an unsuccessful appeal against the bankruptcy ruling.
Nurma Sadikin, the curator of Sritex, was quoted by the news agency as saying: “We have opened the options to lease (Sritex) heavy to increase the bankruptcy assets and prevent its value from falling.” Indonesia’s Manpower Minister Yassierli informed the Indonesia Business Post that there is interest from several investors, including a state-owned enterprise, though specific details were not disclosed.
Founded in 1978 and based in Sukoharjo, Central Java, Sritex operates four production units: spinning, weaving, dyeing, and garment manufacturing. The company’s corporate structure includes various units across Sukoharjo, Boyolali, and Semarang.
The bankruptcy situation has put approximately 10,000 employees at risk of losing their jobs, according to local media reports.
To address the potential layoffs and support re-employment for former Sritex workers, Yassierli is collaborating with the Coordinating Ministry for the Economy and the curator to re-register these individuals.
Meanwhile, Sadikin mentioned that a decision regarding the leasing of the assets will be made in two weeks. She also noted that this leasing option could potentially provide an opportunity for Sritex employees to be rehired.
