Latest news with #Sritex
Business Times
22-05-2025
- Business
- Business Times
Indonesia's collapsed textile giant Sritex faces delisting as former executive named suspect in bank loan scandal
[JAKARTA] Indonesia's collapsed textile giant Sri Rejeki Isman (Sritex) is facing potential delisting from the Indonesia Stock Exchange (IDX) after the Attorney General's Office (AGO) named a former executive as a suspect in a corruption case involving the alleged misuse of bank loan facilities. IDX director I Gede Nyoman Yetna said on Thursday (May 22) that Sritex shares, which have been suspended from trading since 2021, now meet the criteria for delisting and reverting to private status. However, he did not specify when the delisting would take place, saying the exchange is currently coordinating with the Financial Services Authority and a curator on the process. 'Given that Sritex has been officially declared bankrupt, management responsibilities have now been transferred to the court-appointed curator,' Nyoman said in a statement. 'Late (on) Wednesday (May 13), the Attorney General's Office named Iwan Setiawan Lukminto, who served as president director of Sritex from 2014 to 2023, as a suspect in a corruption case involving approximately 693 billion rupiah (S$54.7 million) in unsecured loans issued to the company,' said AGO spokesperson Harli Siregar. Two other suspects were also named: Zainuddin Mappa, former chief executive officer at Bank DKI, and Dicky Syahbandinata, a former executive at Bank BJB. Bank DKI is a regional lender owned by the Jakarta provincial government, while Bank BJB is owned by the West Java and Banten provincial governments. Abdul Qohar, director of investigation at the AGO, said corruption occurred in the disbursement of loans from several state-owned banks to Sritex, with total outstanding debt reaching 3.6 trillion rupiah as at October 2024. He said executives at the regional banks failed to conduct sufficient analysis, and did not comply with procedures and requirements. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up He noted that unsecured loans should only be granted to companies or debtors with an A credit rating, whereas Sritex had been rated BB- by Moody's. Once a textile powerhouse in South-east Asia known for supplying global fashion giants like H&M and Zara, as well as producing uniforms for Nato, Sritex began to unravel during the pandemic. Plummeting orders pushed the company into a spiral of debt and financial distress. The company was declared bankrupt by a court last year after failing to repay debts totalling US$1.6 billion. The Sukoharjo, Central Java-based company halted operations on Mar 1, leading to the dismissal of over 10,000 workers, after rescue efforts initiated by President Prabowo Subianto's administration failed to yield results. The court-appointed curator is reportedly exploring opportunities to attract investors interested in leasing Sritex's assets, as part of ongoing efforts to manage the bankrupt company's remaining resources and potentially revive its operations. Sritex made its stock market debut on IDX in 2013, riding high on its reputation as a textile titan. The Lukminto family, which owns the company, were once among Indonesia's 50 richest, with a fortune estimated at US$515 million on Forbes' 2020 list. Although Sritex shares have been suspended since 2021, they remain priced at 146 rupiah, giving the company a market valuation of nearly three trillion rupiah, with close to 40 per cent held by public investors.
Reuters
22-05-2025
- Business
- Reuters
Indonesia names former boss of textile giant Sritex suspect in loan fraud
JAKARTA, May 22 (Reuters) - The Indonesian Attorney General's Office has named three people, including the former president director of Sritex ( opens new tab, as suspects in alleged corruption linked to bank loans to the now-bankrupt textile giant, officials said. Prosecutors detained the three men as suspects late on Wednesday, said AGO spokesperson Harli Siregar. The AGO named them as Sritex former president director Iwan Setiawan Lukminto, Zainuddin Mappa, former CEO of Bank DKI , a regional bank owned by the Jakarta provincial government, and Dicky Syahbandinata, a former executive at Bank Pembangunan Daerah Jawa Barat dan Banten ( opens new tab which is owned by two other provincial governments. It said that Lukminto was not Sritex's CEO at the time of his arrest, clarifying earlier reports. Sritex was declared bankrupt at the end of last year as it struggled to service its debts, which reached $1.6 billion in June. It stopped operations on March 1 after failing in its appeal against the bankruptcy ruling. The corruption investigation is linked to unsecured loans to Sritex totalling about 693 billion rupiah ($42.54 million). Lukminto was not available for comment and his lawyer is not yet known. His brother, who is also a former Sritex executive, did not immediately respond to a request for comment. The executives at the regional banks "did not conduct sufficient analysis and comply with procedures and requirements," Abdul Qohar director of investigations at the AGO told reporters on Wednesday. "Granting loans without collateral can only be given to companies or debtors with A rating." The office did not provide details on when the loans were made. Sritex's government-appointed curator, Bank DKI and Bank Pembangunan Daerah Jawa Barat dan Banten did not immediately respond to requests for comment. The lawyers for the other two suspects were not immediately clear. Prosecutors also found that Sritex had outstanding debts to several other banks. The textile giant made clothes for high street brands including H&M and Rip Curl, but ran into trouble as global demand declined and competition from lower-cost rivals intensified. Sritex is currently looking for investors to lease its assets. ($1 = 16,290.0000 rupiah)
Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
Indonesia arrests CEO of textile giant Sritex
About 10,000 Sritex workers faced layoffs when the company was declared bankrupt last year. (EPA Images pic) JAKARTA : The president director of bankrupt Indonesian textile giant Sritex has been arrested as part of a corruption investigation, Indonesia's attorney-general's office (AGO) said yesterday. The AGO confirmed to Reuters that the arrest of Iwan Setiawan Lukminto was due to alleged irregularities related to a bank loan provided to Sritex. Local media earlier reported the loan was provided by a state bank. Reuters sought comment from Sritex, but they did not immediately respond. The AGO did not provide details on the case, the size of the loan or which lender provided it. Sritex was declared bankrupt at the end of last year as it struggled to service its debts, which reached US$1.6 billion in June. It stopped operations on March 1 after failing in its appeal against the bankruptcy ruling. Sritex, which has produced clothes for high street brands like H&M, Rip Curl and Forever 21, as well as military uniforms for the North Atlantic Treaty Organization, has suffered from weak global demand and cheaper imported fashion. It has been looking for investors to lease its assets to prevent its value from falling. Following the bankruptcy, about 10,000 Sritex workers were facing layoffs, local media reported at that time.
The Sun
21-05-2025
- Business
- The Sun
CEO of Indonesia's textile giant Sritex arrested, local media reports
JAKARTA: The president director of bankrupt Indonesian textile giant Sritex has been arrested as part of a corruption investigation, local media reported on Wednesday. The arrest of Iwan Kurniawan Lukminto was due to alleged irregularities related to a loan provided by a state bank to Sritex, or PT Sri Rejeki Isman, the reports said. Reuters could not immediately verify the reports and has sought comment from Sritex and the office of the attorney general. The reports provided no details on the case, the size of the loan or which lender provided it. Sritex was declared bankrupt at the end of last year as it struggled to service its debts, which reached $1.6 billion in June. It stopped operations on March 1 after failing in its appeal against the bankruptcy ruling. Sritex, which has produced clothes for high street brands like H&M, Rip Curl and Forever 21, as well as military uniforms for the North Atlantic Treaty Organization, has suffered from weak global demand and cheaper imported fashion. It has been looking for investors to lease its assets to prevent its value from falling. Following the bankruptcy, about 10,000 Sritex workers were facing layoffs, local media reported at that time.
The Sun
21-05-2025
- Business
- The Sun
CEO of Indonesia's textile giant Sritex arrested
JAKARTA: The president director of bankrupt Indonesian textile giant Sritex has been arrested as part of a corruption investigation, local media reported on Wednesday. The arrest of Iwan Kurniawan Lukminto was due to alleged irregularities related to a loan provided by a state bank to Sritex, or PT Sri Rejeki Isman, the reports said. Reuters could not immediately verify the reports and has sought comment from Sritex and the office of the attorney general. The reports provided no details on the case, the size of the loan or which lender provided it. Sritex was declared bankrupt at the end of last year as it struggled to service its debts, which reached $1.6 billion in June. It stopped operations on March 1 after failing in its appeal against the bankruptcy ruling. Sritex, which has produced clothes for high street brands like H&M, Rip Curl and Forever 21, as well as military uniforms for the North Atlantic Treaty Organization, has suffered from weak global demand and cheaper imported fashion. It has been looking for investors to lease its assets to prevent its value from falling. Following the bankruptcy, about 10,000 Sritex workers were facing layoffs, local media reported at that time.
