History of Sritex, a NATO uniform manufacturer now threatened with bankruptcy

TEMPO.CO, Jakarta – Financial director of PT Sri Rejeki Isman Tbk or Sritex, Welly Salam, reacted to the news that this company was threatened with bankruptcy. He denied this news but admitted that Sritex's revenues had fallen drastically.

This explanation from PT Sritex is also a response to a letter from the Indonesia Stock Exchange sent on June 21, 2024 regarding the condition of the company that was reportedly bankrupt. “This is not true as the company is still active and there has been no bankruptcy decision from the court,” Welly said in a written statement received by Tempo on Monday, June 24, 2024.

Welly admitted that the Covid-19 pandemic and competition in the global textile industry were the main factors in Sritex's sales decline. Apart from that, the conflicts between Russia and Ukraine and Israel and Palestine also caused a decline in exports due to a shift in priorities by people in Europe and the United States.

Welly also explained that the company's revenues had fallen as a result oversupply textiles in China. The large number of Chinese products entering Indonesia currently means that sales of PT Sritex products have not yet recovered. “Those with loose import rules do not apply anti-dumping duties, there are no barrier tariffs or non-tariff barriers, and one of them is Indonesia,” he said.

Sritex has long been known as one of the giants of Indonesia's textile industry. This company has had a heyday and is often an international customer. What is the profile of Sritex, which is now reportedly on the brink of bankruptcy?

PT Sritex profile

Sritex is a textile company founded in 1966 by HM Lukminto, a man born in June 1946 in Kertosono, Nganjuk, East Java. He started Sritex, starting as a retail textile trader and then developing into the largest textile and clothing company in Indonesia.

Sritex started from a trading company (UD) called “Sri Redjeki” in Pasar Klewer, Solo, Central Java. In 1968, this small company experienced rapid growth and began producing bleached and dyed fabrics at its first factory in Solo.

Subsequently, Sritex was registered with the Ministry of Commerce as a limited liability company in 1978. In 1982, Sritex established their first spinning factory, which became an important stepping stone in the company's expansion.

Located in Sukoharjo, Central Java, this textile factory operates on an area of ​​150 hectares and has a total of 25,000 employees. About 70 percent of production is exported and the remaining 30 percent is intended to meet domestic needs.

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