Business · Companies · 2 hrs ago
Danantara Weighs Taking Over Assets of Troubled Sritex
Danantara Indonesia is considering taking over assets of textile company Sritex as part of a plan to enter the industry.
The state investment body says its textile business could cover the entire supply chain, from raw materials to finished products, and create jobs.
Sritex is bankrupt, and some of its assets are tied up in legal cases or may be sold to pay creditors.
Experts say Danantara should carry out strict legal, financial and commercial checks before deciding whether to acquire the assets or consider other options.
They warn that damaged equipment, a weak reputation and outstanding obligations could make a rescue costly and difficult.
One expert says Danantara could instead build new textile operations, particularly in raw materials, where Indonesia is a net importer; no final decision on Sritex has been announced.
Danantara Indonesia is weighing taking over assets of troubled textile company PT Sri Rejeki Isman, known as Sritex.
Chief Operating Officer Dony Oskaria said an asset takeover is one option as Danantara plans to build a state-owned textile business.
He said the plan could cover the textile supply chain from upstream to downstream and create many jobs.
Analysts said a takeover could carry legal, financial, commercial and reputational risks, and one urged Danantara to reconsider.
An analyst said Danantara should conduct strict due diligence and assess whether taking over assets or renting them would be more suitable.
- Who
- Danantara Indonesia is considering taking over assets of PT Sri Rejeki Isman, or Sritex.
- What
- An asset takeover is one option as Danantara plans to enter the textile business.
- When
- Dony Oskaria discussed the option on October 26, 2026. Analysts commented on October 27.
- Where
- Jakarta, Indonesia.
- Why
- Danantara says its textile plans could create jobs and serve a market it has. An analyst said saving a labor-intensive industry could also reduce unemployment.
Danantara’s expansion proponents
Critics of taking over Sritex
Rationale
Danantara’s expansion proponents
Dony Oskaria said entering textiles could create many jobs and serve a market Danantara has.
Critics of taking over Sritex
Herry Gunawan said reviving Sritex would not be rational and advised Danantara to reconsider.
Risks and safeguards
Danantara’s expansion proponents
Toto Pranoto said any takeover should follow strict legal, financial and commercial due diligence.
Critics of taking over Sritex
Herry cited assets caught up in legal cases, Sritex’s damaged reputation and idle machinery requiring maintenance spending.
Alternative
Danantara’s expansion proponents
Danantara could consider taking over existing assets as part of building a textile business.
Critics of taking over Sritex
Herry said building a textile industry plan from scratch, especially in upstream production, could be more beneficial.
Dony Oskaria said in Jakarta that taking over existing assets was one option for Danantara’s textile plans.
Toto Pranoto and Herry Gunawan gave assessments of a possible Sritex takeover.
CNN Indonesia published its report on the risks facing Danantara if it takes over Sritex.
- Company
- PT Sri Rejeki Isman, known as Sritex
- Potential buyer
- Danantara Indonesia
- Danantara executive
- Dony Oskaria, chief operating officer
- Sritex machinery
- Factory machines had been idle for about two years
- Analyst warning
- Herry Gunawan advised Danantara to reconsider taking over Sritex
What people are saying
Itu sebetulnya salah satu opsi. Dalam pembangunan pabrik tekstil ini tentu ada opsi mengambil alih yang sudah ada
Lebih banyak pada aspek tanggung jawab sosial
Sebaiknya dipertimbangkan ulang untuk mengambil Sritex. Tidak rasional jika Danantara memilih untuk menghidupkan kembali Sritex