Indonesia labor group urges state bailout for troubled textile giant Sritex

JAKARTA, Indonesia — 

A large labour radical successful Indonesia has called connected the authorities to bail retired troubled textile elephantine Sritex, aft President Prabowo Subianto ordered his ministers to prevention the steadfast from bankruptcy.

Prabowo, who took bureau past week, has ordered his furniture to find solutions for Sritex quickly, aft a tribunal past week accepted a petition by 1 of its commercialized partners implicit unpaid debt, which has enactment the firm, which employs astir 50,000 people, connected the brink of bankruptcy.

Sritex had $1.6 cardinal of indebtedness arsenic of June.

Said Iqbal, president of the labour party, a salient workers' question and governmental party, said a authorities bailout is 1 solution to forestall monolithic layoffs that whitethorn travel from Sritex's bankruptcy.

"The authorities needs to supply bailout funds to settee Sritex's debts," helium said connected Sunday, adding different solution was authorities involution successful the ineligible process to annul the bankruptcy decision.

Sritex, which has produced apparel for precocious thoroughfare brands similar H&M, Rip Curl and Forever 21, arsenic good arsenic subject uniforms for the North Atlantic Treaty Organization (NATO), has suffered from anemic planetary request and cheaper imported fashion.

It struck a woody with its creditors successful 2022 to restructure much than $1.4 cardinal of indebtedness but the tribunal past week ruled to annul that statement pursuing the petition by its commercialized spouse PT Indo Bharat Rayon.

Industry Minister Agus Gumiwang Kartasasmita said the authorities was moving to find the close measures to guarantee Sritex's operations and to debar layoffs, according to authorities quality bureau Antara.

Sritex's outstanding indebtedness to Indo Bharat Rayon arsenic of June was astatine 101.3 cardinal rupiah ($6.48 million) oregon 0.4% of its full liabilities, Sritex said successful a banal speech filing.

Indo Bharat Rayon did not instantly respond to petition for comment.

Sritex has filed an entreaty against bankruptcy and has asked for government's support, the institution said successful its Instagram account.