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View all search resultsPrabowo’s $6 billion rescue plan leaves textile industry puzzled
A state-owned textile enterprise is to tackle industrywide problems, including rehiring tens of thousands of workers laid off after the Sritex bankruptcy.
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Workers produce military uniforms at a factory of PT Sri Rezeki Isman (Sritex) in Sukoharjo, Central Java, in October 2016. (JP/Nani Afrida)
T
he government’s plan to set up a new state-owned textile firm has raised questions among business representatives over how it might help the industry, with warnings that heavy-handed intervention risks weakening private investment and job creation in one of the country’s most labor-intensive sectors.
Redma Gita Wirawasta, chairman of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI), said on Tuesday that industry players were awaiting details on the announced deployment of US$6 billion, particularly following government signals that the proposed state-owned enterprise (SOE) would focus on aiding bankrupt textile firm PT Sri Rejeki Isman, better known as Sritex.
“A state-owned company is one possible option, but we want to stress that improving the business climate […] is just as important,” Redma told The Jakarta Post, pointing to trade policy, competitiveness incentives and licensing transparency.
“Saving Sritex would cost at least Rp 8 trillion [US$472 million], so there should also be room for incentives for private players. The $6 billion could instead be used to spur up to $60 billion in private investment.”
Read also: Textile firms push for cheaper loans, tighter imports after $6b support pledge
Sritex, once one of Southeast Asia’s largest integrated textile manufacturers, officially ceased operations in March 2025 following its bankruptcy declaration in October 2024.
The shutdown led to the layoff of more than 10,000 workers in January and February 2025. In response, President Prabowo Subianto instructed several ministers to devise solutions to help re-employ the affected workers, including leasing factory machinery, attracting investors to acquire the company or facilitating their absorption into other companies.
