JAKARTA - Secretary of State Prasetyo Hadi said the government is preparing to establish a new state-owned enterprise (BUMN) for textiles, after Indonesia's textile giant, PT Sri Rejeki Isman Tbk (Sritex) went bankrupt and closed its operations.
Prasetyo explained that the government was preparing the new SOE to focus on handling garment and textile problems through the Danantara Indonesia Investment Management Agency (BPI).
"Regarding yesterday's incident involving PT Sritex. So this is in process, we hope that in the near future all processes can be completed so that PT Sritex, however, we must save in the sense that its economic activities must continue to run," said Prasetyo when giving information at the Presidential Palace, Jakarta, Monday, January 19.
Pras, his nickname, explained that Sritex's operational and economic activities must continue, even though the company was declared bankrupt.
Based on the information collected, Sritex was also forced to terminate the employment relationship (PHK) for more than 10 thousand employees.
Sritex, which is the largest textile manufacturer in Southeast Asia, has also produced various textile and garment products to meet domestic and foreign needs.
"There are approximately 10 thousand employees and quite a large economic activity generated from clothing products, uniforms, both to meet domestic needs and exports to foreign countries," said Pras.
On a previous occasion, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would form a new state-owned enterprise (BUMN) specifically for the textile sector.
The plan was an order from President Prabowo Subianto during a meeting in Hambalang, Bogor, West Java, on January 11, 2026.
The reason is that the textile and garment industry is considered to be the front line in facing the risk of US tariff policies.
"It will form a new state-owned enterprise specifically for textiles. It will not revive (the old textile company)," said Airlangga.
He explained that from the results of the study that has been completed, the plan will be continued with the preparation of a roadmap for strengthening the textile and textile products (TPT) industry.
To support this policy, the Government has prepared funding of US$ 6 billion through BPI Danantara.
The funds are directed towards the procurement of capital goods, the implementation of new technologies, to increasing exports in the textile sector.
"Therefore, a roadmap has been made on how to increase our exports, which from 4 billion (US dollars), can rise to 40 billion (US dollars) in 10 years, and how to deepen the value chain in the textile industry," he explained.
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