EVALUATION OF THE BANKRUPTCY PROCESS OF SRITEX: IMPLICATIONS FOR INDONESIA’S BANKRUPTY LAW

Abstract

This study evaluates the bankruptcy process of PT Sri Rejeki Isman Tbk (Sritex), one of the largest textile companies in Indonesia that was declared bankrupt by the Semarang Commercial Court in 2021. This study analyzes internal and external factors that influenced the bankruptcy, including poor debt management and the impact of the COVID-19 pandemic. Using a qualitative case study approach, this study identifies key weaknesses in the bankruptcy legal system in Indonesia, such as inefficiency and lack of transparency in the legal process. Findings from the Sritex case highlight the need for reforms in the Bankruptcy and PKPU Law (UUK-PKPU). Recommendations include accelerating the legal process, improving mediation procedures, and promoting debt restructuring as an alternative to bankruptcy. This study provides valuable insights for policymakers, legal practitioners, and stakeholders to improve the efficiency and fairness of the bankruptcy legal system in Indonesia.