March 4, Indonesia: Over 10,000 factory workers in Indonesia have been laid off following the closure of Southeast Asia’s largest textile manufacturer, Sri Rejeki Isman (Sritex). The company ceased operations on Saturday and is currently in discussions with potential investors to take over its assets, according to the court-appointed administrator.
At its peak, Sritex was a major player in the Indonesian industry, producing military uniforms for NATO and the German Army. However, 10,965 workers have now been dismissed, as reported by Deputy Manpower Minister Immanuel Ebenezer Gerungan.
The shutdown has deeply affected long-term employees like Sri Wiyani, a 20-year veteran of Sritex, who shared her sentiments with the Jakarta Globe:
“I have so many memories here, from meeting my soulmate to raising my children, who are now in school.”
On Friday, the final day of operations, thousands of employees gathered at the Sukoharjo facility to bid farewell to a factory that had employed more than 8,500 workers. Sritex’s bankruptcy declaration in October led to a creditors’ meeting at Semarang Commercial Court, sealing the company’s fate. The closures of its factories in Sukoharjo, Boyolali, and Semarang have left entire communities uncertain about their future.
Veteran employee Suyoto, who spent 30 years with Sritex, now faces financial challenges, telling the Jakarta Globe:
“I still have credit instalments at BRI [Bank Rakyat Indonesia], and now I’ve lost my job. This is a severe blow for me.”
Manpower Minister Yassierli has pledged support for the affected workers, ensuring they receive their due wages, severance pay, and social security benefits, including retirement savings and job loss insurance. The government is also working to connect former Sritex employees with new job opportunities, identifying 10,666 vacancies in industries ranging from apparel to food and beverage manufacturing. The company, which was a key supplier for NATO and the German army, had been a cornerstone of Indonesia’s industrial sector for nearly six decades.
The closure of Sritex signifies a dramatic decline for a company that once symbolized Indonesian industrial strength. Founded in 1966 in Surakarta, Sritex evolved into a regional giant, providing stable employment for decades and serving as a cornerstone of Central Java’s economy. Keep Reading Questiqa.com.
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