Indonesian Textile Goliath Faces Collapse: Government Intervention Urged

Indonesia's major labour group urges government intervention to save textile firm Sritex from bankruptcy. President Prabowo Subianto has tasked ministers with finding a resolution after a court accepted a debt petition endangering the 50,000-employee company. The group suggests a bailout or annulment of the bankruptcy decision to avoid layoffs.

Indonesia's labor movement is urging the government to rescue textile giant Sritex, following an order from President Prabowo Subianto. President Subianto directed his ministers to address the potential bankruptcy facing Sritex, which employs around 50,000 individuals.

A court ruling last week, in response to a debt petition from trade partner PT Indo Bharat Rayon, brought Sritex's financial woes into sharp relief. With $1.6 billion in debt as of June, the textile titan is staring down possible collapse. Said Iqbal, head of the labor party, recommends a government bailout to mitigate the risk of mass job losses.

Efforts are underway to either provide bailout funds or intervene legally to reverse the bankruptcy decision. Sritex, known for clothing brands like H&M and military uniforms for NATO, struggles amidst diminished global demand and cheaper fashion imports. The government, led by Industry Minister Agus Gumiwang Kartasasmita, is exploring viable options to ensure Sritex's continuity and safeguard its workforce.

(With inputs from agencies.)