Puan Asks The Government To Save The Fate Of Sritex Workers: No Layoffs

Chairman of the House of Representatives and Chairperson of the PDIP DPP Puan Maharani (ANTARA)

JAKARTA - Chairman of the Indonesian House of Representatives, Puan Maharani, asked the Government to focus on helping employees of PT Sri Rejeki Isman Tbk or Sritex not to be laid off following the bankruptcy of the textile giant. He said that saving around 50 thousand Sritex employees must be a priority.

"We must focus on protecting the workforce in dealing with uncertainties like this. There should be no layoffs," said Puan, Friday, November 1.

Puan hopes that PT Sritex will also fulfill its commitment not to lay off their employees. "Large layoffs or massive layoffs should be avoided. This concerns the fate and welfare of Sritex employees which is quite large," said the first woman to serve as Chairman of the DPR RI.

Puan said that the rescue of tens of thousands of Sritex employees included ensuring that regulations and facilities from the Government made their fate guaranteed. According to him, Sritex's bankruptcy is not just a financial problem for the company, but has an widespread impact on the workforce, local economy, and social stability.

The former Coordinating Minister for Human Development and Culture also reminded that the potential for mass layoffs could have an impact on national economic growth. Because Sritex is the largest textile company in Southeast Asia.

"We also support how the Government helps Sritex so that they can still export-import even though they are bankrupt. Because if the operation doesn't work, the impact will be on their business where tens of thousands of people depend on their fate there," said Puan.

Puan also hopes that the trading dispute of the textile company, which is centered in Sukoharjo, Central Java, can be resolved soon. He also reminded the Government to provide effective assistance following the issue of a bail out to save Sritex from bankruptcy.

"The focus remains on saving workers who have the potential to experience termination of employment," said Puan.

Puan also reminded that the Government must pay attention to protecting workers' rights from the worst possible. "The government's policy must be friendly to workers in order to avoid a wider economic impact and reduce the risk of mass unemployment," said the legislator from the Central Java V electoral district.

Puan also asked the Government to continue to monitor and assist Sritex workers who are currently in a state of anxiety over the latest status of the national-scale textile company.

"And if mass layoffs are unavoidable, the Government must ensure that guarantees for workers affected by layoffs can be given without any obstacles," he concluded.

As is known, Sritex was cut off by the Semarang Commercial District Court over the lawsuit filed by PT Indo Bharat Rayon (IBR). In this case, Sritex is considered negligent about the debt to IBR so that the problem has a long and fatal impact on the company.

Currently Sritex is submitting Cassation efforts to the Supreme Court (MA) in the hope that the Supreme Court's decision can cancel the Commercial Court's decision.

Sritex stated that it has around 50,000 employees in its group where 14,112 employees are said to have been directly affected by the bankruptcy decision. The Indonesian Employers Association (Apindo) is also worried about mass layoffs due to Sritex bankruptcy.