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%.

The wholesale and retail trade sector led in credit distribution, with loans worth Rp27.16 trillion, followed by the manufacturing sector at Rp25.51 trillion. This highlights the economic activities driving credit demand in the region.

Sritex, once a leading textile manufacturer, was declared bankrupt by the Semarang Commercial Court, leading to the permanent closure of its operations starting March 1, 2025. The company’s collapse has not only displaced thousands of workers but also raised concerns about the financial stability of the affected employees and the local economy.

The OJK’s evaluation aims to identify and mitigate potential risks to the financial sector, ensuring stability in the wake of Sritex’s bankruptcy. By analyzing loan data and monitoring the banking sector, the OJK seeks to prevent a ripple effect that could destabilize the region’s financial ecosystem.(Uki Ruknuddin)