Alfida Rizky Febrianna, Jakarta – The government has given the green light for textile giant Sri Rejeki Isman, better known as Sritex. to resume its export-import activities despite a bankruptcy verdict, according to Chief Economic Affairs Minister Airlangga Hartarto.

The Semarang Commercial Court recently declared Sritex bankrupt after the company failed to pay its debts. The court has also appointed curators to deal with the company's assets and legal matters. The government said it would respect the court's decision, while also preparing some strategies to save 50,000 people from losing their jobs. This includes letting the company resume export-import operations.

"All that matters is that the company still operates to this day. The customs office has also granted permission for import-export activities. The curators will handle the management, and the supervising judge will determine the next steps," Airlangga told reporters in Jakarta on Wednesday.

Airlangga said that the government was also working on some rescue plans to prevent systemic problems from hitting Indonesia's labor-intensive industries. A number of textile firms also faced issues in the past but were able to survive by making major changes within the company. The minister added: "Restructuring is one of the possible solutions that the government will push."

Sritex has operations across Central Java. Despite Sritex' bankruptcy, the Indonesian textile industry – particularly in the Central Javan province including Kendal – reported an increase in investments. Many of the companies are also export-oriented. "Productivity is key when it comes to global competition," Airlangga said.

President Prabowo Subianto has instructed his freshly installed cabinet to save Sritex. The company supplies camouflage military uniforms to NATO countries. Sritex also sews clothes for global brands such as Zara and Uniqlo.

Source: https://jakartaglobe.id/business/govt-allows-sritex-to-resume-export-operations-despite-bankruptc