Alfida Rizky Febrianna, Jakarta – The Manpower Ministry has assured that no employees at Indonesia's largest textile company, Sri Rejeki Isman, better known as Sritex, will face layoffs, despite the company being declared bankrupt by the Semarang Commercial Court.
"I assure you there will be no layoffs. This has been agreed upon by the management, represented by Sritex owner Iwan Setiawan Lukminto," Deputy Minister Immanuel Ebenezer Gerungan said during a visit to the Sritex textile factory in Sukoharjo, Central Java, on Monday.
Thousands of employees cheered and chanted, "Long live President Prabowo, thank you Mr. Prabowo," in gratitude.
Around 50,000 employees are hopeful for government support in saving their workplace. "The government and state are here for the workers and employers, so there should no longer be anxiety or unrest," Immanuel said.
He added that the government is committed to keeping the textile sector operational and preventing any company in the industry from going bankrupt. Immanuel also praised the resolve of Sritex workers and management, who are committed to avoiding layoffs.
Sritex President Director Iwan Setiawan Lukminto stressed that the company's efficiency measures are simply a response to market conditions, not a result of bankruptcy. "Our focus is to remain operational. We have no intention of closing this factory, especially as our operations and finances have improved over the past two years," Iwan stated.
Established 58 years ago, Sritex is one of Indonesia's oldest and largest textile companies, with facilities across Central Java. The company also supplies camouflage military uniforms to NATO countries.
The Semarang District Court recently declared Sritex bankrupt following a lawsuit by creditor Indo Bharat Rayon over unpaid debts. The court also annulled a prior debt restructuring agreement with Sritex, which has since filed an appeal.