Sritex Bankruptcy Triggers 10,665 Layoffs, Operations End on March 1, 2025

JAKARTA, investortrust.id – Sritex, a major Indonesian textile manufacturer, closes its operations on March 1, 2025, after being declared bankrupt by a commercial court. The shutdown affects 10,665 employees who lose their jobs this week, highlighting the significant labor impact and raising concerns over the future of Indonesia’s textile industry.

Indonesia’s Ministry of Manpower (Kemenaker) confirmed the bankruptcy of PT Sri Rejeki Isman Tbk, also known as SRIL or Sritex, which triggered multiple waves of layoffs from January until February 26, 2025.

Data from Kemenaker showed that the court-appointed administrator began cutting the workforce once the company’s financial collapse was legally pronounced by the Commercial Court in Semarang, Central Java.

Based on official records, 1,065 workers at PT Bitratex lost their positions in January 2025. By February 26, 8,504 employees at PT Sritex Sukoharjo were let go, together with 956 workers at PT Primayuda Boyolali, 40 at PT Sinar Panja Jaya Semarang, and another 104 at PT Bitratex Semarang.

These layoffs took effect this Friday, February 28, 2025, marking the final working day for the affected staff.

Deputy Manpower Minister Immanuel Ebenezer Gerungan underscored that the ministry would continue to safeguard workers’ rights. “That is why we maintain close coordination with Sritex’s management,” he said on Friday, February 28, 2025.

He explained that once a company is ruled bankrupt under Indonesian law, the fate of its assets and obligations rests in the hands of the appointed administrator.

Separately, Sukoharjo’s local head of industry and manpower, Sumarno, said on Thursday, February 27, 2025, that Sritex’s employees had until Friday to work before the factory’s official closure.

“The number of laid-off workers reaches 10,665. Severance pay will be handled by the appointed administrator, while retirement guarantees are under the authority of BPJS Ketenagakerjaan,” he stated.