Corruption Probe Shakes Indonesian Textile Giant Sritex

Iwan Kurniawan Lukminto, president director of Indonesia's textile giant Sritex, has been arrested in a corruption probe related to a state bank loan. The company, which faced bankruptcy with a $1.6 billion debt, halted operations in March 2023, impacting 10,000 workers amid weak global fashion demand.

Iwan Kurniawan Lukminto, the president director of bankrupt Indonesian textile firm Sritex, has been arrested amid a corruption investigation, local media revealed on Wednesday.

The arrest pertains to alleged irregularities in a state bank loan to Sritex, also known as PT Sri Rejeki Isman. Sritex, declared bankrupt last year, left $1.6 billion in unsettled debts. Attempts to secure external investors have been part of efforts to preserve the company's value.

The company's closure in March resulted in job uncertainty for 10,000 workers. Known for producing military uniforms and popular high-street brand clothing, Sritex has struggled due to cheaper fashion imports and low global demand.