Deputy Minister of Manpower Immanuel Ebenezer Gerungan says “this was agreed by management represented by Sritex owner Iwan Setiawan Lukminto”
The Indonesian government pledged that the bankruptcy of PT Sri Rejeki Isman (Sritex) would not lead to layoffs for the roughly 50,000 workers employed by the textile giant.
“I assure you that there will be no layoffs of Sritex workers,” Deputy Minister of Manpower Immanuel Ebenezer Gerungan said during his visit to the company’s factory in Sukoharjo, Central Java on Monday (Oct 28). “This was agreed by the management represented by Sritex owner Iwan Setiawan Lukminto.”
The Indonesian clothing maker has no intention of closing its factory and is focusing on continuing operations as its business and financial conditions have shown signs of recovery over the past few years, Lukminto was quoted as saying in the manpower ministry’s statement on Tuesday (Oct 29).
The official visit follows Sritex’s bankruptcy ruling by a local court last week, two years after the company reached a debt restructuring agreement with its creditors. The company, which has sewn clothes for global brands including H&M, Uniqlo and Zara, fell into debt distress during the pandemic after orders slumped.
President Prabowo Subianto has called on relevant ministries to work out solutions to save one of Indonesia’s largest textile manufacturers. The woes extend beyond Sritex though. Domestic garment associations have demanded more government support to revive the sector, which has slumped since the pandemic and has been hit by a flood of cheap imports, mainly from China.
Despite the reintroduction of some safeguard and anti-dumping duties, industry players are also asking the government to tighten recently revised import regulations to curb a surge in shipments. BLOOMBERG
