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INDONESIA’S SRITEX TO SHUT DOWN ON MARCH 1, OVER 10,000 WORKERS LAID OFF

28/02/2025 04:29 PM

By Mohd Iswandi Kasan Anuar

JAKARTA, Feb 28 (Bernama) -- Indonesian textile giant PT Sri Rejeki Isman (Sritex) will permanently shut down on March 1, 2025, after the country’s Supreme Court upheld a bankruptcy ruling, resulting in the layoff of 10,665 employees.

Local media reported that layoffs began in January, starting with workers from PT Bitratex Semarang, followed by a second wave that occurred in February, affecting employees at PT Sritex Sukoharjo, PT Primayuda Boyolali, PT Sinar Panja Jaya Semarang, and PT Bitratex Semarang.

Deputy Manpower Minister Immanuel Ebenezer Gerungan assured that the government is working to protect the rights of affected workers, coordinating with Sritex management to ensure severance payments and job loss insurance.

“The government, through the ministry, will stand with the workers. As a nation governed by law, we must abide by legal processes,” he said, as quoted by news portal Sindo News.

Meanwhile, Sritex employees were officially laid off on February 26, with their final working day on February 28, according to Sumarno, head of the Sukoharjo Industry and Manpower Office.

“Severance payments will be handled by the appointed curator, while pension benefits fall under BPJS Ketenagakerjaan (Social Security Agency for Employment),” he said.

Once Indonesia’s largest textile producer, Sritex had been struggling with mounting debts before its bankruptcy was confirmed by the Supreme Court earlier this year.

Founded by Lukminto in 1966 as UD Sri Redjeki, Sritex grew from a small trading business into a large textile manufacturer and expanded internationally in 1994 by producing military uniforms.

The company was listed on the Indonesia Stock Exchange in 2013 and played a key role in distributing 45 million masks during the Covid-19 pandemic in 2020.

-- BERNAMA

 

 


 


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