The government will make every effort to rescue textile company PT Sri Rejeki Isman (Sritex), as stated by the Minister of Industry after the Semarang District Court (PN) recently declared Sritex bankrupt. Rescuing Sritex is a direct order from President Prabowo, who has requested multiple relevant technical ministries to conduct in-depth studies to save the company. President Prabowo has ordered the Ministry of Industry, Ministry of Finance, Minister of State-Owned Enterprises (BUMN), and Minister of Manpower to immediately study various options and plans to rescue Sritex. In addition, the government's top priority at present is to protect Sritex employees from the threat of layoffs (PHK). The government will take immediate measures to keep the company operating and avoid layoffs. This rescue plan will be proposed as soon as the four ministries have formulated the rescue approach. Previously, PT Sri Rejeki Isman Tbk (SRIL) or Sritex had filed an appeal against the court's decision. In that ruling, the Semarang District Court declared Sritex and its three subsidiaries PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya bankrupt. Sritex management stated in a written statement that they respect the legal decision and responded swiftly by conducting internal restructuring and integrating with relevant stakeholders. They have filed an appeal to resolve the issue properly and ensure the rights of stakeholders are protected. Sritex management stated that this is their responsibility to creditors, customers, employees, and suppliers who have jointly supported the company's business. Currently, approximately 14,112 employees are directly affected by the company's situation, while the Sritex Group has 50,000 employees. Meanwhile, Sritex declared bankruptcy after being mired in debt problems in recent years. As of the end of last year, Sritex's short-term liabilities stood at US$113.02 million, of which US$11 million was short-term bank debt to Bank Central Asia (BBCA). Meanwhile, among US$1.49 billion in long-term liabilities, US$858.05 million was bank debt. The majority of long-term bank debt consists of syndicated debt (from Citigroup, DBS Bank, HSBC, and Hang Seng Bank) valued at US$330 million. In addition, BCA, Bank QNB Indonesia, Citibank Indonesia, Bank BJB Indonesia, and Mizuho Bank are listed as the largest creditors, with SRIL liabilities exceeding US$30 million each. In addition to the five banks mentioned above, the company also has debts to 19 other banks, most of which are foreign banks or foreign private banks. In its latest disclosure, the textile company stated that its increasing debt has led to employee layoffs. As of March 31, 2024, the company's debt details not yet due were valued at US$31.67 million, an increase of US$8.7 million from December 2023. Debts due within 30 days rose to US$630,000. Then debts due within 31–90 days increased by US$1.2 million, and within 91–180 days by US$468,000. In addition, SRIL restructured its short-term debt securities (MTN), which were originally due from May 18, 2021, to August 29, 2027. Due to cash flow problems, the company proposed a relaxation of MTN principal and interest payments. These financial difficulties ultimately forced Sritex to implement layoffs. Over the past year, the company laid off 2,232 employees, reducing its workforce from 16,370 at the end of 2022 to the remaining 14,138 at the end of last year.