Jemmy Kartiwa Sastratmaja, Chair of the Indonesian Textile Association (API), attributed Sritex's bankruptcy to the global economic slowdown, which has led to a rise in Chinese textile products flooding the Indonesian market. He noted that rising inflation and interest rates worldwide have diminished purchasing power in key markets like the United States and the European Union, exacerbating the situation for local producers.
On October 23, 2024, the Commercial Court of Semarang City declared Sritex (SRIL) bankrupt, following a creditor's request to cancel its suspension of debt payment obligations. Haruno Patriadi, the court's spokesperson, confirmed the decision, which was led by presiding judge Muhammad Anshar Majid, and appointed a curator to manage the case.
In response to these challenges, Indonesia and several other countries are implementing trade barriers to protect their domestic industries from the influx of foreign products, aiming to stabilize local markets affected by the oversupply from major producers like China. Sritex, a prominent player in Indonesia's textile sector since 1966, now faces significant restructuring challenges.
