Arrest Shakes Sritex Amidst Corruption Probe: Director Nabbed

Iwan Setiawan Lukminto, director of the bankrupt Indonesian textile giant Sritex, was arrested in connection with a corruption investigation tied to a bank loan. Sritex, once prominent for clothing and military uniforms, was declared bankrupt last year with debts of $1.6 billion, leading to significant layoffs.

Iwan Setiawan Lukminto, the president director of Indonesian textile giant Sritex, has been apprehended as part of a corruption probe, confirmed the Attorney General's Office (AGO) of Indonesia on Wednesday.

The arrest stems from alleged malpractices related to a reported state bank loan extended to Sritex. Efforts to reach Sritex for comment were unsuccessful.

The AGO has not divulged specific details concerning the financial aspects of the case. In light of Sritex's bankruptcy, which was declared late last year after the company incurred debts totaling $1.6 billion, the company ceased operations and faced massive employee layoffs.

(With inputs from agencies.)