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he Confederation of Indonesian Trade Unions (KSPI) has called on the government to take immediate action for the sake of thousands of workers of textile company PT Sri Rejeki Isman (Sritex), which has been declared bankrupt.
KSPI Central Java spokesman Aulia Hakim said on Wednesday that thousands of Sritex workers were anxious about their future, as they faced the possibility of termination without severance pay.
The textile giant currently employs around 50,000 people, 14,112 of whom would be directly affected by the bankruptcy ruling, according to the company.
“In Sukoharjo [Central Java], there are around 11,000 workers now facing no guarantees” regarding their future, Aulia said in provincial capital Semarang, as quoted by Kompas.com.
Sritex, which produces the clothing of high street brands for export, as well as military uniforms for NATO countries, has been hard-hit by weak global demand and competition from cheaper producers.
In 2022, the company reached an agreement with its creditors to restructure debt totaling over US$1.4 billion by filing a suspension of debt payment obligations (PKPU), but the Semarang Commercial Court ruled on Oct. 23 to annul the agreement in favor of a petition from PT Indo Bharat Rayon, a Sritex trading partner.
As of June, Sritex owed Indo Bharat Rayon outstanding debt of Rp 101.3 billion ($6.48 million), equivalent to 0.4 percent of its total liabilities, according to a stock exchange filing.
