Domestic Textile Giants on the Brink of Collapsing

textile industry

  • Mounting short-term debts backfired several major textile issuers. Based on D-Insights records, seven of the ten largest textile companies by assets are facing a high liquidity risk following lower cash and cash equivalents than their obligations that will soon mature.
  • Two major textile companies, Sri Rejeki Isman and Pan Brothers, currently under debt repayment postponements (PKPU), saw soaring short-term liabilities by hundreds of percent in the past five years and are now facing liquidity constraints. One of which has a larger fixed asset bearing.
  • Several domestic and foreign banks have jumbo loan portfolios to large textile issuers currently facing financial constraints. Bank Muamalat is also facing financial challenges and could also be affected. The bank has a credit portfolio worth almost half a trillion rupiah at Sritex.
  • The government prepares to expand safeguards for textile products after previously limiting cross-border sales of textile products on e-commerce platforms. The domestic market is expected to be the savior amid the pandemic. Many parties urged the government to make careful free trade agreements, tighten import conditions, and take serious action against illegal imports.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.