Corruption Charges Hit Bankrupt Indonesian Textile Powerhouse
The president director of Sritex, a major Indonesian textile company declared bankrupt last year, has been arrested for alleged corruption involving bank loan irregularities. Sritex faced financial challenges due to high debt and competition from cheaper imports, resulting in the potential layoff of 10,000 workers.
Sritex's president director has been apprehended amid a corruption probe linked to a contentious bank loan, confirmed Indonesia's Attorney General's Office on Wednesday.
The AGO informed Reuters that Iwan Kurniawan Lukminto's arrest is tied to questionable dealings concerning a loan from a state bank to Sritex. Efforts to reach Sritex for comments went unanswered.
Marked by financial turmoil, Sritex went bankrupt last year due to its enormous debt of $1.6 billion, ceasing operations on March 1. Known for supplying global brands and NATO, Sritex has struggled due to diminishing demand and cheaper imports, putting 10,000 jobs at risk post-bankruptcy.
(With inputs from agencies.)
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