On October 25th, according to Indonesian media reports: The legendary textile factory PT Sri Rejeki Isman Tbk (Sritex) in Central Java was officially declared bankrupt by the Semarang Commercial District Court on Wednesday (October 23).
Sritex employs about 20,000 workers. The company was founded in 1966. It was listed on the Indonesia Stock Exchange (IDX) in 2013.
The minister of manpower relations development and social affairs said: “The Ministry of Manpower requires PT Sritex and its subsidiaries that have been declared bankrupt by the commercial court not to rush to lay off employees before making a unanimous decision or until the Supreme Court makes a unanimous decision.” In addition, PT Sritex management is also required to continue to pay workers’ rights. Especially wages. The Ministry of Manpower calls on management and trade unions to safeguard the interests of the company. The way to do this is to give priority to dialogue to find the best solution.
Earlier, PT Sri Rejeki Isman Tbk (Sritex) had been declared bankrupt by the Semarang Commercial Court. This decision was made after approving the request of one of the creditors of the textile company, who requested the cancellation of the reconciliation to postpone the previously agreed debt payment obligation.
Haruno Patriadi, spokesperson for the Semarang Commercial Court, confirmed the decision that led to the bankruptcy of PT Sritex. According to him, the decision of the trial led by Chief Judge Muhammad Anshar Majid approved the request of PT Indo Bharat Rayon as the debtor of PT Sritex.
Even large enterprises require effective risk management and financial planning to avoid financial distress. It emphasizes that while enterprises pursue economic benefits, they should shoulder social responsibilities, protect employees’ rights and interests, and abide by legal procedures.
Additionally, it highlights the fragility of the global supply chain, the crucial role of technology and innovation in enhancing enterprise competitiveness, the importance of business diversification, and the necessity of finding solutions through dialogue and cooperation in times of crisis. This incident may also prompt policymakers and regulatory agencies to reevaluate regulatory policies for enterprises to prevent similar bankruptcy events in the future.
Source: 鞋界教授, Denim Union.