Government Opens Option To Provide Bailout Funds To Save Sritex

Acting (Plt) Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Reni Yanita. (Photo: Theresia Agatha/VOI)

JAKARTA - Acting (Plt) Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Reni Yanita revealed that the government has the potential to disburse bailout funds to save the textile giant company PT Sri Rejeki Isman Tbk (SRIL) or Sritex from bankruptcy conditions.

This was in response to the agenda of a meeting between the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita and President Commissioner Sritex Iwan Setiawan Lukminto, today.

Reni said, there would be a possibility of providing bailout funds and incentives for Sritex and the overall textile industry.

"Yes, it's like that (incentives or bailout funds), but we'll see if the model is developed. Yes, it's like that because, right, this is together. (Baihow?) We'll see," said Reni when met by reporters at the Ministry of Industry's office, Monday, October 28.

Reni said the government would not take a policy in the form of taking over Sritex.

Even so, he confirmed that the Ministry of Industry would coordinate with the Ministry of Manpower (Kemenaker), the Ministry of Finance (Kemenkeu) and the Ministry of State-Owned Enterprises (BUMN).

Therefore, Minister of Industry Agus must first know the existing conditions at the Sritex company through a special meeting with the Minister of Industry Agus this morning.

"To save that, the Minister of Industry must first know. That's why today's meeting is more for us to know what the existing conditions are like. For that, rescue efforts will be prepared," he said.

In addition, Reni said that the direction from the Minister of Industry was related to the security of the workforce and export impetus.

In addition, Agus also asked about production utilization at four SRIL factories.

Based on information received by the Ministry of Industry, currently the utility of SRIL production has reached around 65 percent or has increased compared to the pandemic at the level of 40 percent. Reni also emphasized that SRIL's operations were still running normally.

"With such utilization, right, the government is also obliged to take over or save the language. The point is, to try it so that cases like this don't happen. Instead, we lose companies that provide jobs for thousands," he said.

Regarding President Prabowo Subianto's direction to reduce four ministries, Reni said, this step could be a certainty for third parties who have contracts with Sritex that business conditions remain safe with the presence of the government.

"Even without any direction, once again because this is an industry, it must be the Minister (Agus Gumiwang)'s obligation to continue to keep the industry operating," he added.