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Bloomberg Published December 19, 2024 Reading time
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Indonesian Supreme Court upholds Sritex bankruptcy ruling

By
Bloomberg Published
December 19, 2024

Indonesia’s Supreme Court has upheld the bankruptcy ruling on distressed textile company PT Sri Rejeki Isman, according to people familiar with the decision, risking layoffs for tens of thousands of its employees.

The court on Wednesday rejected the appeal from Sritex - as the company is more commonly known - to overturn a lower court ruling in October that declared the company bankrupt, said the people, who asked not to be identified as the decision was not yet public.

The ruling will raise uncertainties for the company’s roughly 50,000 employees. Indonesian President Prabowo Subianto had previously ordered his ministers to come up with rescue options for the company, once the country’s largest clothesmaker.