New PT Sritex Case Suspect Named by Attorney General’s Office, Former President Director Iwan Kurniawan Lukminto

By Irfan Kamil, Robertus Belarminus for Kompas.com, August 13, 2025

JAKARTA, KOMPAS.com – Indonesia’s national Attorney General’s Office (AGO) has named former PT Sri Rejeki Isman Tbk (Sritex) (SRIL.JK), President Director, Iwan Kurniawan Lukminto, as a new suspect in the corruption case alleged to involve the provision of credit facilities to PT Sritex(^) .

The naming of the former president direct as a suspect comes after AGO investigators from the Deputy Attorney General for Special Crimes (Jampidsus) uncovered the former PT Sritex President Director’s involvement following the questioning of 277 witnesses and four experts.

“Based on the results of the investigation and evidence obtained by the investigative team, today we have named another suspect, the former President Director of PT Sritex,” said Nurcahyo Jungkung, Director of Investigations at the Deputy Attorney General for Special Crimes (Jampidsus) at the Attorney General’s office in South Jakarta on Wednesday August 13, 2025.

To date the Attorney General’s Office has named eight suspects:

• Allan Moran Severino, Finance Director of PT Sritex from 2006 to 2023
• Babay Farid Wazadi, Director of Micro, Small, and Medium Sized Enterprise Credit and Finance Director of Bank DKI from 2019 to 2022
• Pramono Sigit (PS), Director of Technology and Operations at PT Bank DKI from 2015 to 2021
• Yuddy Renaldi, President Director of Bank Jawa Barat and Banten 2009–March 2025
• Benny Riswandi, Senior Executive Vice President of Bank BJB 2019–2023
• Supriyatno, President Director of Bank Jateng 2014–2023
• Pujiono, Director of Corporate and Commercial Business at Bank Jateng 2017–2020, and
• Suldiarta, Head of the Corporate and Commercial Business Division at Bank Jateng 2018–2020

The Attorney General’s Office has previously named three other suspects in the case:

• Iwan Setiawan Lukminto, PT Sritex Commissioner and brother of former President Director Iwan Kurniawan Lukminto
• Dicky Syahbandinata, Division Head and Commercial Officer of PT Bank Pembangunan Daerah (BPD) West Java and Banten in 2020, and
• Zainudin Mapa, President Director of PT Bank DKI Jakarta in 2020.

The case relates to the provision of credit by three provincial banks to PT Sritex, Bank DKI, Bank BJB, and Bank Jateng. During the investigation it is alleged the three regional development banks have engaged in unlawful conduct.

The credit that was supposed to be used as working capital was instead allegedly used to repay debts and purchase assets, including land in Solo and Yogyakarta owned by Commissioner Iwan Setiawan Lukminto. As a result, the credit from Bank BJB and Bank DKI to PT Sritex was in default with a collectibility status of 5.

Attempts to seize assets to cover the losses were unsuccessful because the value was lower than the loans, and had not been used as collateral.

The suspects have been charged under Article 2 Paragraph 1 or Article 3 in conjunction with Article 18 of Law No. 31/1999 Concerning the Eradication of Corruption, in conjunction with Article 55 Paragraph 1, point 1 of Indonesia’s Criminal Code (KUHP).

This post is based on https://nasional.kompas.com/read/2025/08/13/20213471/kejagung-tetapkan-iwan-kurniawan-lukminto-tersangka-baru-kasus-sritex. Featured image credit: By Yoma Times Suryadi, from PHK Buruh Sritex: Pesangon Tak Jelas, Ekonomi Warga Kandas, Project Multatuli.

(^) According to Reuters, “PT Sri Rejeki Isman Tbk is an Indonesia-based integrated textile and garment company. The Company is engaged in the business of spinning, weaving, printing, finishing of fabric, garments, and equipment for safety protection. The Company is also engaged in the trading of textiles, clothing, other goods of textiles, laboratory equipment, pharmaceutical equipment, medicine equipment, and various kinds of goods. The Company operates through four segments: Spinning, Weaving, Fabric finishing, and Garment. The Company’s subsidiaries include PT Sinar Pantja Djaja, Golden Legacy Pte. Ltd., Golden Mountain Textile and Trading Pte. Ltd., PT Primayudha Mandirijaya, and PT Bitratex Industries. PT Sinar Pantja Djaja is a yarn spinning company. Golden Legacy Pte. Ltd. is an investment company. Golden Mountain Textile and Trading Pte. Ltd. is engaged in a wholesale trading business.”

In earlier news…

Sritex President Commissioner Iwan Setiawan Lukminto Arrested by Attorney General’s Office in Solo, Kompas.com

By Shela Octavia, Jessi Carina for Kompas.com, May 21, 2025

JAKARTA – Indonesia’s national Attorney General’s Office has detained Iwan Setiawan Lukminto, the President Commissioner of PT Sri Rejeki Isman TBK, known as Sritex. Febri Adriansyah, the Director of Special Crimes at the Attorney General’s Office, confirmed the arrest on Wednesday, May 21, 2025.

“Yes, he’s been arrested,” Febri confirmed. The arrest took place the previous evening in Solo, Central Java. The Attorney General’s Office has yet to disclose the specific reasons behind Iwan’s arrest.

However, for some time now the Attorney General’s Office has been conducting an investigation into allegations of corruption at Sritex. Investigators have also interrogated representatives from several regional banks to examine the credit extended to the failed company.

“The lending banks are government banks. According to the national finance law, funds from (government owned) regional banks are regarded as part of national government or regional government finances,” said Harli Siregar, Head of the Legal Information Center, during a meeting at the Attorney General’s Office on Monday, May 5, 2025.

The provision of credit warrants scrutiny, particularly as Sritex has recently faced significant funding difficulties.

Bankrupt

As reported previously, Sritex has been declared bankrupt by the Semarang Commercial Court. This decision was handed down in the court’s decision numbered 2/Pdt.Sus-Homologasi/2024/PN Niaga Smg, presided over by Chief Judge Moch Ansor on Monday, October 21, 2024.

The case was filed against several respondents, including PT Sri Rejeki Isman Tbk, PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya. These companies were found to have failed in their obligations to make payments to the petitioners as stipulated in a homologation decision dated January 25, 2022.

Consequently, this ruling simultaneously overturned the Semarang Commercial Court’s decision numbered 12/Pdt.Sus-PKPU/2021.PN.Niaga.Smg dated January 25, 2022, concerning the ratification of the settlement agreement (homologation).

Following the declaration of bankruptcy, the management of PT Sritex announced that it has filed a superior court appeal or cassation to contest the annulment of the homologation as decided by the Semarang Commercial Court.

After being declared bankrupt in October 2024, the company officially ceased operations as of March 1, 2025.

This article is based on https://nasional.kompas.com/read/2025/05/21/13035051/komut-sritex-iwan-setiawan-lukminto-ditangkap-kejagung-di-solo.

***

Mass Layoffs at Sritex: Uncertain Severance Pay, Economic Hardship for Workers

By Yoma Times Suryadi for Project Multatuli, March 25, 2025

The hum of textile machinery at PT Sri Rejeki Isman (SRIL), commonly known as Sritex, fell silent on February 28, 2025, as the company officially ceased operations. A day later, on March 1, 2025—just a month before Eid al-Fitr—Sritex laid off 10,969 employees across its group.

Sritex and its three subsidiaries were declared bankrupt by the Semarang Commercial Court on October 21, 2024, under ruling No. 2/Pdt.Sus-Homologasi/2024/PN Niaga Smg. The company appealed to the Supreme Court, but on December 18, 2024, the appeal was rejected, rendering the bankruptcy decision final for the South East Asian textile giant.

Disbelief and Financial Uncertainty

Tumi, 52, a former Sritex employee, was stunned by the abrupt shutdown. She had believed the company could withstand its financial troubles. After 32 years with Sritex, she was proven wrong.

“I never expected it. Suddenly, on February 28, they shut down without any notice. That very morning, my colleagues and I showed up for work as usual, only to realize it was our last day,” she said, tears welling in her eyes.

Tumi, who worked in the spinning department, recalled that orders were still pending, scheduled for completion as late as July 2025. “Those were orders from Bandung,” she said. But after just ten days of work on them a layoff notice arrived via WhatsApp at the end of February.

“Honestly, leaving Sritex has been very hard. The bond with my coworkers was closer than with my own children,” she said.

“The pay wasn’t great, but it was about the feeling and camaraderie. Sometimes at home I find myself crying just thinking about it.”

Now, to keep the household going, Tumi and her husband, Paiman, 51, have started selling young coconut drinks outside their home. Luckily their house sits along a busy road. “It helps us get by,” she said.

At 53 Sri Sulastri shares Tumi’s struggle. Having worked at Sritex since 1991, she relied on her wages to support her family, as her husband, Sriyanto, is a casual laborer. With her younger child still in high school, financial stability remains uncertain.

Despite 33 years in the finishing department, Sulastri’s monthly salary remained at the Sukoharjo Regency minimum wage of approximately 2.3 million rupiah ($150) per month. Having worked there so long with such a low wage, she hopes for some severance pay but has no idea how much she might receive.

“I still can’t believe it. A company that big just shutting down like that?” she said. “The founder, HM Lukminto, built this from selling fabric at Klewer Market in the city of Solo to running a massive factory with thousands of workers.”
Sutardi, 60, a former maintenance worker, started at Sritex in 1989. He left in 2002 to open a dynamo repair shop but took up the offer to go back in 2011 because his workshop was so far from his home.

“I’m still waiting for what the company owes us—severance pay, holiday bonuses, and cooperative savings,” he said.

Fake Sympathy?

Tumi, Sri Sulastri, Sutardi, and thousands of other former employees are now fighting for their unpaid entitlements.

Murjioko, coordinator of “Command Post Orange”—a coalition of the Confederation of Indonesian Trade Unions (KSPI) and Indonesia’s Labor Party—argued that the layoffs were unlawful. He said that the company had gone around legal processes, failing to consult workers or involve unions.

“Termination procedures are clearly regulated under Law No. 2/2004 On Labor Dispute Resolution. There should have been negotiations between the company and the workers, but that never happened,” he said.

Murjioko dismissed gestures from Sritex’s owners—such as hugging workers on their final day—as just gimmicks.

“It was all just for show. If they really cared about their workers, they would have paid the severance pay, holiday bonuses, and cooperative savings instead of leaving everything in limbo,” he said.

Hit Hard

The impact of the factory closing extends beyond employees, affecting the broader local community.

In Pangin neighborhood in Joho Village—just 300 meters from the factory—rooming houses once filled with Sritex workers now sit vacant. For years, these rooms were a steady source of income for locals, accommodating employees from across Indonesia, including East Java.

Warsih, 45, caretaker of a boarding house owned by Pak Togog, said all 15 rooms were constantly full while Sritex was operating.

“I’ve managed this place for 20 years and it has never been empty,” she said.
Beyond lodgings, the small business economy thrived. “I also sold iced tea,” Warsih added. “With so many workers around it was good business.”

Iin Wuryani, 53, a convenience store owner, echoed Warsih’s worries. Many locals operated food stalls, repair shops, and laundromats and all of them depended on Sritex workers for business. “Most of the employees had parents who also worked at Sritex,” she said. The factory’s stability even convinced Iin to leave her own job there after seven years to start her shop.

Now her six lodging rooms stand as empty as the factory itself.

“I just hope Sritex reopens under new ownership,” she said. “The whole community’s economy depends on it.”

This article is based on https://projectmultatuli.org/phk-buruh-sritex-pesangon-tak-jelas-ekonomi-warga-kandas/.

In related news:

• https://nasional.kompas.com/read/2025/08/13/20213471/kejagung-tetapkan-iwan-kurniawan-lukminto-tersangka-baru-kasus-sritex
• https://nasional.kompas.com/read/2025/06/18/09555591/penuhi-panggilan-kejagung-bos-sritex-iwan-kurniawan-mohon-doanya
• https://jateng.antaranews.com/berita/585321/dicegah-ke-luar-negeri-dirut-sritex-tidak-masalah
• https://nasional.kompas.com/read/2025/06/10/09403371/bos-sritex-iwan-kurniawan-tiba-di-kejagung-untuk-jalani-pemeriksaan
• https://money.kompas.com/read/2025/04/07/144125226/soal-phk-pt-yihong-novatex-ini-kata-wamenperin
• https://storiesfromindonesia.com/2025/03/11/transition-potential-banking-sector-impacts-of-a-sritex-failure-mulled/
• https://storiesfromindonesia.com/2025/03/06/sritex-workers-to-call-on-prabowo-government-for-clarity-over-jobs/
• https://www.reuters.com/markets/asia/indonesia-names-former-boss-textile-giant-sritex-suspect-loan-fraud-2025-05-22/
• https://ereport.ipb.ac.id/id/eprint/9510/1/J3N11944-01-Cicilia-Cover.pdf
• Isnawati, I., & Siti Aisyah. (2025). Pengaruh DAR, DER Terhadap Likuiditas Perusahaan Sritex tahun 2014-2023. Jurnal Ekonomi Dan Bisnis Digital , 2(4), 2490–2495. Retrieved from https://jurnal.ittc.web.id/index.php/jebd/article/view/2769
• https://www.kompas.com/tag/sritex