Indonesia’s Attorney-General’s Office arrests CEO of textile giant Sritex in corruption probe
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Sritex was declared bankrupt at the end of 2024 after it struggled to service its debts.
PHOTO: SRITEX
JAKARTA – The president director of bankrupt Indonesian textile giant Sritex has been arrested as part of a corruption investigation, Indonesia's Attorney-General's Office (AGO) said on May 21.
The AGO confirmed to Reuters that the arrest of Mr Iwan Setiawan Lukminto was due to alleged irregularities related to a bank loan provided to Sritex. Local media earlier reported the loan was provided by a state bank.
Reuters sought comment from Sritex, but it did not immediately respond.
The AGO did not provide details on the case, the size of the loan or which lender provided it.
Sritex was declared bankrupt at the end of 2024
Sritex, which has produced clothes for high-street brands like H&M, Rip Curl and Forever 21, as well as military uniforms for Nato, has suffered from weak global demand and cheaper imported fashion.
It has been looking for investors to lease its assets to prevent its value from falling. Following the bankruptcy, about 10,000 Sritex workers were facing layoffs, local media reported at the time. REUTERS
