CEO of the Indonesian textile giant Sritex arrested for banking loan scandal

Jakarta, May 21 – The President of the bankruptcy Indonesian textile giant Sritex was arrested as part of a corruption examination, today the General Prosecutor's office announced in Indonesia.

The preparatory process confirmed Reuters that Iwan Kurniawan Lukminto's arrest was due to alleged irregularities related to a bank loan that Sritex was made available. Local media previously stated that the loan was provided by a state bank.

Reuters looked for a comment from Sritex, but they didn't answer immediately.

The AGO did not contain any details about the case, the size of the loan or the lender that made it available.

Sritex was declared bankruptcy at the end of last year because in June it fought for the acquisition of his debts (6.83 billion RM) of $ 1.6 billion (6.83 billion RM). It stopped the operations on March 1, after he had failed against the insolven central decision.

Sritex, which produced clothing for High Street brands such as H&M, Rip Curl and Forever 21, as well as military uniforms for the organization North Atlantic contract has suffered from weak global demand and cheaper imported fashion.

It searched for investors to rent the assets to prevent the value of the value from falling. After the bankruptcy, around 10,000 Sritex workers were exposed to layoffs, the local media reported at that time. – Reuters