On March 1, 2025, Sritex officially closed its doors, leaving many employees in distress. Workers suspect that the company’s curator is deliberately avoiding the payment of Tunjangan Hari Raya (THR) ahead of Ramadan 2025, raising serious concerns about their rights and financial security.
- Sritex workers suspect curator avoiding holiday payments
- Layoffs occurred two days before Ramadan
- Curator assumed control after bankruptcy declaration
- Workers seek government assistance for rights
- Sritex officially closed due to financial crisis
- Over 8,000 employees lost their jobs
Why Are Sritex Employees Concerned About THR Payments?
Could the timing of layoffs be a tactic to avoid paying THR? Sritex workers are questioning the actions of their curator after being laid off just two days before Ramadan. This situation has sparked outrage and demands for government intervention.
Impact of Sritex’s Closure on Employees and the Community
The closure of Sritex has profound implications for over 8,000 employees and their families. This situation not only affects their livelihoods but also the local economy. Here are some key points to consider:
- Over 8,000 employees laid off.
- Financial strain on families during Ramadan.
- Potential legal battles over unpaid THR.
- Impact on local businesses reliant on Sritex workers.
What Led to Sritex’s Financial Troubles?
Sritex’s financial woes began in 2021 when the company struggled to repay a $350 million syndicate loan. Despite attempts to restructure its debt, the company was declared bankrupt on October 21, 2024. This situation raises questions about corporate governance and financial management practices.
Government Response and Employee Support
In light of the recent layoffs, employees are calling for government intervention. They hope that officials, including President Prabowo Subianto, will take action to protect their rights. The situation at Sritex serves as a reminder of the importance of labor rights and corporate responsibility.
As the situation unfolds, the Sritex case could provide valuable lessons for both Indonesian and U.S. companies about the importance of ethical business practices and employee welfare.
