January 20, 2026 | 11:36 am
TEMPO.CO, Jakarta - The Presidential Palace has addressed the plan to establish a state-owned enterprise (SOE) in the textile sector. State Secretariat Minister Prasetyo Hadi revealed that the new "red plate" firm will focus on addressing textile and garment issues.
According to Prasetyo, this move responds to the bankruptcy of PT Sri Rejeki Isman Tbk (Sritex). The Gerindra Party politician mentioned that the new company is still in formation. "We hope that all processes can be completed in the near future," he said at the Presidential Palace Complex, Jakarta, on Monday, January 19, 2026.
He further explained that the formation of the state textile company aims to ensure the continuity of economic activities at PT Sritex while saving its massive workforce. He noted that Sritex employs approximately 10,000 people.
"Significant economic activity is generated from clothing products, uniforms, both to meet domestic needs and for export overseas," said Prasetyo.
The government is also considering incentives for the textile sector. According to Prasetyo, the garment, textile, and shoe industries are labor-intensive sectors that require government attention.
The formation of the state textile company follows a directive from President Prabowo Subianto during a meeting in Hambalang, Bogor, on January 11, 2026. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the company is necessary because the industry faces risks from US tariff policies.
"The President reminded us that we used to have a state-owned textile company, and this will be revived, so that the US$ 6 billion funding will be prepared by Danantara," said Airlangga at the Indonesian Business Council (IBC) Business Outlook 2026 event in Jakarta, on Wednesday, citing Antara.
Airlangga added that weaknesses remain in the textile value chain, specifically in yarn, fabric, dyeing, printing, and finishing production. He expects the new state-owned company to drive modernization and industry deepening in the sector.
Anastasya Lavenia contributed to the report.
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