This move comes after the textile company was declared bankrupt last year due to its struggle to pay off its $1.6bn debt, Reuters reported.
The company announced its operational shutdown on 28 February 2025, during the bankruptcy creditors’ meeting, with formal closure taking place the following day. This move followed an unsuccessful appeal against the bankruptcy ruling.
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Nurma Sadikin, the curator of Sritex, was quoted by the news agency as saying: “We have opened the options to lease (Sritex) heavy to increase the bankruptcy assets and prevent its value from falling.”
Indonesia’s Manpower Minister Yassierli has indicated to the Indonesia Business Post that there is interest from several investors, including a state-owned enterprise, but withheld specific details.
Founded in 1978 and headquartered in Sukoharjo, Central Java, Sritex operates four production units: spinning, weaving, dyeing, and garment manufacturing.
Sritex’s corporate structure encompasses various units across locations such as Sukoharjo, Boyolali, and Semarang.
The bankruptcy placed approximately 10,000 employees at risk of unemployment, as reported by local media.
In an effort to address the layoffs and facilitate re-employment for former Sritex workers, Yassierli is coordinating with the Coordinating Ministry for the Economy and curator to re-register these individuals.
Meanwhile, Sadikin mentioned that a decision regarding the leasing of the assets will be made in two weeks.
She also noted that this leasing option could potentially provide an opportunity for Sritex employees to be rehired.
