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October 24, 2024 | 03:48 pm
TEMPO.CO, Jakarta - Jemmy Kartiwa Sastratmaja, the Chair of the Indonesian Textile Association (API), said the textile giant Sritex’s bankruptcy is inseparable from the global economic slowdown that prompted the influx of products from China and heavily affected the Indonesian textile industry.
"The main problem originates from the global economic slowdown that started with high inflation and interest rate hikes in various parts of the world, including Indonesia," Jemmy told Tempo on Thursday, October 24, 2024.
This condition triggered a drop in purchasing power in countries like the United States and the European Union. In consequence, major textile producers like China experience an oversupply, which causes their products to flood the markets of various countries.
This significantly affects the domestic textile industry. Eventually, according to Jemmy, several countries, including Indonesia, have followed suit in making various trade barriers or trade restrictions. "Policies are set in place to protect the domestic industry from the influx of Chinese products," he said.
The Commercial Court of Semarang City declared Sritex (SRIL) bankrupt after granting a request from one of the company's creditors who requested the cancellation of its suspension of debt payment obligation (PKPU) previously agreed in January 2022.
This was conveyed by the Spokesperson of the Commercial Court of Semarang City, Haruno Patriadi, on Wednesday, October 23.
Haruno explained that the judges, led by presiding judge Muhammad Anshar Majid, granted PT Indo Bharat Rayon’s request as the debtor of PT Sritex.
In the court's decision, Haruno mentioned that a curator has been appointed and will arrange meetings with debtors. Sritex is one of the major textile companies in Indonesia that has been operating since 1966.
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