RRI.CO.ID, Jakarta: Minister of State Secretary Prasetyo Hadi announced that President Prabowo Subianto is preparing to establish a new state-owned enterprise (SOE) dedicated to the textile sector.

The move comes in response to the bankruptcy of PT Sri Rejeki Isman Tbk, better known as Sritex, which has halted operations after decades as one of Indonesia’s largest textile and garment producers.

Minister Prasetyo explained that the new SOE will manage the garment and textile industry through the Danantara Indonesia Investment Management Agency (BPI). He stressed that the sustainability of the national textile industry must be safeguarded.

“We expect all processes to be completed in the near future. We must save Sritex in the sense that its economic activities must continue,” Prasetyo said at the Presidential Complex in Jakarta on Monday, January 19, 2026.

Although Sritex has been declared bankrupt, Prasetyo emphasized that its operational and economic activities must be preserved, given the company’s scale and impact.

“The company employs approximately 10,000 people and generates significant economic activity. This includes clothing and uniform products, both for domestic demand and export markets,” he said.

Sritex, headquartered in Sukoharjo, Central Java, was once a flagship of Indonesia’s textile industry, supplying military uniforms to several countries and exporting garments worldwide.

Its collapse in 2025, following mounting debts and global market pressures, sent shockwaves through the industry and raised concerns about employment and competitiveness. The government now views the establishment of a new SOE as a way to stabilize the sector and protect workers.

Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed the plan, noting that it was directed by the President during a meeting in Hambalang, Bogor, on Saturday, January 17. “We will form a new SOE specifically for textiles, not revive old textile companies,” Minister Airlangga said.

He added that the textile industry is at the forefront of facing risks from US tariff policies.

Minister Airlangga further revealed that the government is preparing USD 6 billion in funding through BPI Danantara. The funds will be allocated to strengthen the industry, apply advanced technology, and boost national textile exports.

The government’s initiative reflects broader efforts to ensure that Indonesia’s textile sector remains competitive globally, while also addressing the social and economic fallout from Sritex’s bankruptcy. (Gusti Panji/Lasti Martina)