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November 15, 2024 | 07:53 am
TEMPO.CO, Jakarta - The government is currently working on rescuing PT Sri Rejeki Isman Tbk or Sritex from a massive wave of layoffs due to the company's liquidation process.
Deputy Minister of Manpower Immanuel Ebenezer stated that President Prabowo Subianto directly instructed Sritex employees to avoid layoffs to protect them from social and economic impacts. "This is the president's order, so we must implement it whether we like it or not," said Immanuel on Wednesday, November 13, 2024.
Currently, the Ministry of Manpower is coordinating with the Ministry of Finance, Ministry of Industry, and State-Owned Enterprises Ministry to support Sritex's operational stability. This step is taken following the President's direction, who is committed to preventing layoffs and supporting the recovery of the national textile industry that is currently affected.
During a facilitation activity at the PT Sritex headquarters in Sukoharjo, Central Java, on Tuesday, November 12, 2024, Member of the Indonesian Ombudsman Yeka Hendra Fatika expressed that the Ombudsman is paying serious attention to expediting the handling of Sritex's bankruptcy status.
According to Yeka, the bankruptcy decision has resulted in blocking goods transactions by the Directorate General of Customs, now affecting the continuity of production activities. "We urge the government to expedite handling this issue to avoid massive layoffs," said Yeka in a separate meeting in Jakarta.
1. Bankruptcy Policy Review
The Indonesian Ombudsman recommends that the government review the bankruptcy law to prevent maladministration that can affect the sustainability of domestic industries. In the case of Sritex, the bankruptcy status decided by the Commercial Court of Semarang has led to 2,500 employees being temporarily laid off. Sritex also faces a shortage of raw materials, which is estimated to be sufficient for only three weeks of production. So, a wave of layoffs could occur if the operational permit is not issued promptly.
2. Preventing Illegal Imports
Yeka also urged the Ministry of Trade to reduce illegal imports that burden the domestic textile industry. He believes that the bankruptcy policy applied to Sritex should consider the public interest and the risk of a domino effect on the labor and industry sectors.
3. Providing Bridge Funding
The Ministry of Industry is considering various options to maintain business sustainability, including providing bridge funding and incentives for Sritex. Reni Yanita, a representative from the Ministry of Industry, mentioned that Sritex's operations are still running under the curator's supervision. "We are trying to ensure that the workforce remains protected and exports continue," she said.
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