Prabowo urges no layoffs at Sritex amid bankruptcy: minister

Menteri Ketenagakerjaan Yassierli memberikan keterangan kepada wartawan usai mengikuti rapat yang dipimpin Presiden Prabowo Subianto di Kompleks Istana Kepresidenan, Jakarta, Selasa (29/10/2024). Rapat tersebut membahas opsi penyelamatan perusahaan garmen PT Sritex yang telah dinyatakan pailit. ANTARA FOTO/Hafidz Mubarak A/aww.

Jakarta (ANTARA) - President Prabowo Subianto has instructed related ministries to ensure that no Sritex employees are laid off and that the textile giant continues to operate, according to Manpower Minister Yassierli.

Yassierli shared Prabowo's request after attending a limited meeting led by the President, which included Coordinating Minister for Economic Affairs Airlangga Hartarto and Finance Minister Sri Mulyani Indrawati.

The meeting also addressed issues at Sritex, which has been declared bankrupt by the Semarang Commercial District Court (PN) in Central Java.

"The government is very concerned, and Mr. President has requested that there be no layoffs of employees. Furthermore, the government hopes that Sritex can continue to produce as usual," Yassierli told a press conference in Jakarta on Tuesday.

According to the minister, President Prabowo stated that the government will not allow layoffs, believing that they will not occur since there is still an option to appeal the court's decision.

"They have not (gone bankrupt). This means there will be a cassation process, and we believe that layoffs will not happen," Yassierli explained.

He noted that, so far, there have been no reports of layoffs among Sritex employees. He mentioned that his ministry has been monitoring the situation, particularly in Central Java, where the company has production facilities.

He added that 162 labor inspectors in the province are continuing to communicate and coordinate with Sritex management to ensure that employees' rights are upheld.

The government has also urged Sritex employees to remain calm, stating that several company rescue strategies have been prepared, including legal steps and corporate actions.

"I am concerned about workers' rights to work calmly and happily, so this issue should not interfere with their work," Yassierli said.

Sritex was established in 1966 in Sukoharjo, Central Java. The company is well known for its export products and is a manufacturer of military uniforms for several countries.