Sritex Will Officially Close On March 1, 2025, Resulting In Thousands Of Employees Being Laid Off

PT Sri Rejeki Isman Tbk (Sritex), one of Indonesia's largest textile manufacturers, will officially cease operations on March 1, 2025. This decision directly affects around 8,400 employees who will face layoffs. The closure follows a bankruptcy ruling by the Semarang Commercial Court due to a lawsuit from PT Indo Bharat Rayon.

This marks the end of Sritex's long history as a major player in the Indonesian textile industry. Prior to the bankruptcy ruling, the company struggled with various financial challenges that made it increasingly difficult to sustain operations. Consequently, all employees received layoff notices as part of the liquidation process now overseen by a team of curators.

According to Sumarno, the Head of the Industry and Manpower Office of Sukoharjo Regency, the mass layoffs will take effect on February 26, 2025, while the company will continue its operations until February 28, 2025. "The layoffs are confirmed to start on February 26," Sumarno stated, as reported by ANTARA.

Timeline of Sritex's Closure and Mass Layoffs The bankruptcy of PT Sritex originated from a lawsuit filed by PT Indo Bharat Rayon in the Semarang Commercial Court. By the end of February 2025, the court ruled that Sritex and its three subsidiaries—PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya—could not continue operations due to overwhelming debt. On February 26, 2025, the curators officially announced mass layoffs for all employees of the Sritex Group. Workers received layoff letters as a prerequisite for accessing their entitlements, including old-age benefits and job loss insurance. Widada, the Chairman of the All-Indonesian Workers Union (SPSI) at PT Sritex, confirmed that most employees had filled out layoff forms to expedite the processing of their benefits. "They were filling out some forms. When laid off, there is a letter," Widada said.

Employee Rights After Layoffs

Following the closure of Sritex, thousands of employees are now working to secure their rights, which include severance pay, unpaid wages, and social security benefits. According to information from the Sukoharjo Department of Manpower, payments for old-age benefits (JHT) and unemployment insurance (JKP) will be processed through BPJS Employment. "Old-age benefits, unemployment insurance, and pensions are managed by BPJS Employment, so they should be safe," said Sumarno. He also mentioned that Sritex has consistently paid premiums, despite a delay in registration in February 2025.

However, severance pay and holiday bonuses for employees cannot be fully disbursed yet, as they depend on the liquidation of the company's assets. The meeting notes indicate that these payments will be made once the assets are sold or if a new investor comes in.

Impact of Sritex Closure

The closure of Sritex has a significant impact, not only on employees but also on the local economy in Sukoharjo and surrounding areas. Many workers have expressed their disappointment and concerns about their future after losing their jobs unexpectedly. On social media, some Sritex employees have shared their struggles in finding new employment. Several posts also voiced hopes for government solutions to assist them in securing replacement jobs. Despite this, the Sukoharjo Department of Manpower has stated that they are preparing job openings in other companies to help mitigate the effects of this mass layoff.

Prospects for the Textile Industry After Sritex's Closure

The closure of Sritex is a significant blow to the national textile industry, which was already under pressure from global competition and rising raw material costs. With Sritex's bankruptcy, the sector faces new challenges, including a potential decline in the competitiveness of Indonesian textile products in the international market.

Tag: Semarang Sri Rejeki Isman Sritex