SOLO, RAKYAT NEWS – The Financial Services Authority (OJK) in Solo is closely monitoring the potential fallout from the bankruptcy of PT Sritex, a major textile manufacturer, which has left 10,655 employees jobless. The OJK is assessing the impact of these mass layoffs on the performance of financing companies, particularly in the Solo Raya region, where many former Sritex workers may have outstanding loans.

Eko Hariyanto, Head of OJK Solo, highlighted the urgency of this evaluation, noting that thousands of former Sritex employees likely have consumer loans with financial institutions. “We need to evaluate the impact of Sritex’s bankruptcy, as the company had a large workforce that may have taken out loans,” Eko stated on Friday (7/3).

The OJK’s assessment will focus on the banking sector, especially Rural Banks (BPR), where many former employees may have consumer loans. “There is a possibility that former Sritex employees have loans at BPRs, and we need to understand the potential risks,” Eko added. The evaluation will also analyze loan data to gauge the broader impact on the financial sector.

As of November 2024, financing companies in Solo Raya reported a 12.29% year-on-year increase in financing receivables, reaching Rp5.26 trillion. However, this growth was accompanied by a sharp rise in non-performing financing (NPF), which skyrocketed by 237.70% to Rp409.64 billion. This trend has raised concerns about the stability of the financing sector.

In contrast, the banking sector experienced a 2.64% decline in financing, dropping to Rp104.13 trillion by December 2024. Despite this, third-party funds (DPK) increased by 3.61% to Rp97.50 trillion, and banking liquidity remained stable, with a loan-to-deposit ratio (LDR) of 106.79%.