Indonesia plans state-owned textile company to acquire Sritex
The Industry Ministry has discussed the proposed company with Danantara, while financing and implementation arrangements remain unclear.
Indonesia plans to establish a state-owned textile company that would acquire several domestic businesses, including bankrupt PT Sri Rejeki Isman Tbk (Sritex), Industry Minister Sarmuji said in remarks reported on 14 October 2026.
Sarmuji said the proposed company would help develop existing textile businesses by combining their different capabilities. The government wants the businesses to support one another and strengthen the competitiveness of Indonesia’s textile and textile products industry, which is facing various pressures.
The Industry Ministry has discussed the proposal with state investment manager BPI Danantara, which is being prepared to support funding for the company’s establishment. Financing arrangements and details of how the plan would be carried out still need clarification.
Danantara chief executive Rosan Roeslani said in late September that the government intended to create a new company to develop textile businesses already operating in Indonesia and explore partnerships with them. It is also intended to drive integration of the country’s textile industrial areas.
The government previously estimated that establishing the state-owned textile company would require US$6 billion in investment. Sritex is under the control of bankruptcy administrators following a court ruling declaring it bankrupt.
