Sritex contests bankruptcy as Prabowo calls for rescue plan

Indonesian textile giant Sri Rejeki Isman is contesting a court decision that declared it bankrupt as the company owner pledges to keep its factory open and see through the revival of the business.

Sritex, as the company is more commonly known, filed an appeal on Oct 25, requesting a review of the court's bankruptcy ruling, according to the court's website. The court on Java island - where Sritex is based - had earlier granted the plaintiff's demand to declare the company and its subsidiaries bankrupt for failing to meet payment obligations set in a debt restructuring agreement from 2022.

The appeal came as Indonesia's newly minted President Prabowo Subianto called for a meeting on Oct 29 and ordered his ministers to come up with rescue options for Sritex, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

The Customs and excise office has already agreed to let the company resume import and export operations despite the bankruptcy verdict, Mr Hartarto said after the meeting.