The management of textile manufacturer, PT Sri Rejeki Isman Tbk or Sritex, revealed that the company’s significant drop in revenue was primarily caused by the influx of low-cost textile products from China into the Indonesian market.
Sritex has firmly denied the bankruptcy issues. “That’s not true because the company is still operational, and no bankruptcy decision has been made by the court,” Sritex’s Finance Director, Welly Salam, said in a letter dated June 22.
Welly explained that the country’s largest textile company saw a decline in sales due to the impact of COVID-19, which led to heightened competition in the global textile industry, especially as a result of China’s excessive textile supply.
This oversupply from China led to a significant drop in textile prices worldwide, affecting Sritex’s sales negatively.
Welly also pointed out that Indonesia has loose import regulations and does not impose anti-dumping import duties, making it one of the targeted countries for dumping cheap textile products from China. “There are no tariff barriers or non-tariff barriers,” he added.
Additionally, global geopolitical conditions, such as the Russia-Ukraine and Israel-Palestine conflicts have contributed to a decline in exports. “Exports are down because people in Europe and the United States have changed their priorities,” Welly said, stressing that Sritex will continue its operations despite these challenging circumstances.
Source: https://en.tempo.co/