Sritex Bankrupt, DPR Asks All Stakehoders To Focus On Saving Workers From Mass Layoffs

Illustration. (Photo: Doc. Antara)

JAKARTA - Deputy Speaker of the Indonesian House of Representatives Cucun Ahmad Syamsurijal highlighted the bankruptcy decision of PT Sri Rejeki Isman Tbk or Sritex. Cucun encouraged all stakeholders to work together to find the best way to anticipate the impact of the bankruptcy decision on the textile giant.

For your information, Sritex and three of its subsidiaries were cut off by the Semarang Commercial District Court on Monday, October 21. Sritex was declared bankrupt because he was unable to pay off his debt after 2022, the large textile company was declared to have postponed its debt payment obligations (PKPU).

"The DPR of course feels concerned about the bankruptcy decision against Sritex. The most important thing is that we must ensure that there is a rescue mission for tens of thousands of workers from the impact of this decision. Do not let a storm of layoffs occur," said Cucun in an official statement, Tuesday, October 29.

Furthermore, Cucun hopes that Sritex's trade dispute can be resolved soon. Given that there are thousands of employees whose fate is on the brink.

As it is known, currently there are around 14,112 SRIL employees who are directly affected, 50,000 employees in the Sritex Group, and countless other small and medium enterprises whose business continuity depends on Sritex's business activities.

"Because the bankruptcy decision could have an impact on the fate of tens of thousands of Sritex workers and their families who depend on the company's operations," he said.

In the aftermath of Sritex's bankruptcy decision, President Prabowo Subianto has also ordered the Ministry of Industry, Ministry of Finance, Ministry of SOEs, and Ministry of Manpower to immediately review several options and schemes to save Sritex.

Cucun also appreciated the government for proactively working quickly to find a way out following Sritex's bankruptcy decision. He said the DPR would certainly participate in guarding to ensure the rescue of domestic workers and textile industries.

Tak hanya itu, Cucun juga menekankan pentingnya kebijakan yang inklusif untuk melindungi karyawan terdampak dalam mempertahankan lapangan kerja mereka.

"The DPR is grateful that the company is still carrying out its responsibilities to Sritex employees and is struggling so that there is no storm of layoffs on its workers. But our priority is that the affected workers are not left alone when in a difficult position," he explained.

Cucun said that despite being declared bankrupt, Sritex emphasized that it had not gone bankrupt and was still operating as usual even though there was efficiency. However, the bankruptcy decision could also have an impact on the fate of Sritex workers.

Despite Sritex's management commitment, Cucun still asks the Government to anticipate the worst possible impact. Including the readiness of BPJS Ketenagakerjaan to face potential mass layoffs if this becomes the last resort.

"BPJS Ketenagakerjaan must provide assistance in the event of mass layoffs, the Job Loss Guarantee (JKP) program must be ready so that the fund claim process for workers who are laid off runs smoothly," said Cucun.

Furthermore, Cucun stated that the DPR through Commission IX in charge of employment affairs would assist.

"We hope that the Government has readiness because the potential for Sritex employees who will lose their jobs is quite large, reaching tens of thousands of people. So the guarantee from the JKP program in the form of cash benefits, access to job market information, and job training must be ensured," he said.

On the other hand, Cucun also asked the government to intervene in various ways to make the textile and garment industry healthy again. Given that the TPT industry is a labor-intensive sector that absorbs nearly 4 million workers and contributes greatly to gross domestic product (GDP).

"In addition to geopolitical factors that reduce our textile exports, the flood of imported products in the domestic market at competitive prices makes domestic products less competitive. We must overcome this together to ensure that our TPT industry does not wither," he said.

Cucun also supports the Government to revise Permendag Number 8/2024 which is considered to be one of the factors in the domestic market being flooded with imported products at low prices so that it erodes national business actors. In addition, he encouraged the Government to take steps that could revive the domestic textile industry.

"Protecting the TPT industry is very important because this labor-intensive industry absorbs a lot of workers who can help the government spur economic growth. And of course so that bankruptcy events like Sritex don't happen again," explained Cucun.