Support Local Products or Lose Them: Lessons from Sritex’s Bankruptcy

Indonesia’s textile industry has just lost one of its biggest players. Sritex, a textile company that had been around for decades, has been declared bankrupt. This is not just a business headline—it is a warning to all of us: if we do not support local products, we will lose even more.

Sritex and the Crisis in the Local Textile Industry

Sritex was once a proud name in the national textile industry, supplying fabrics for well-known brands and even military uniforms in various countries. However, intense pressure from cheap imported products and a lack of government support for local industries led to its downfall. The Indonesian government has not provided sufficient protection for domestic textile manufacturers, allowing an influx of cheap imports that local companies simply cannot compete with. Additionally, high production costs, limited subsidies, and lack of strong policies to promote local products have made survival even more difficult for businesses like Sritex.

Unfortunately, this could be the beginning of a larger wave, other textile companies may face the same fate if decisive action is not taken soon.

Why Should We Care?

As imported products continue to dominate the market with lower prices, local textile companies struggle to compete. If this trend persists, it will not only impact the industry but also the thousands of workers who rely on this sector for their livelihoods. Mass layoffs could occur, and the local economy will suffer further. Without intervention, we risk losing more homegrown businesses, diminishing Indonesia’s ability to produce its own high-quality textiles.

TRI Cycle: Fighting for Local Products and Sustainability

As a local brand, TRI Cycle understands these challenges and strives to be part of the solution. We use fabric waste from production to reduce textile waste while supporting the domestic textile industry. By recycling and creating more sustainable products, we aim to prove that local products can remain competitive without harming the environment.

Supporting local products is not just about buying Indonesian made goods, it is about preserving the textile industry ecosystem. When we choose locally made products, we help sustain this industry and create opportunities for more artisans and textile workers. However, real change also requires better government policies that protect and promote local manufacturers.

What Can We Do?

• Support local brands. Choose locally made products that offer high quality and empower local workers.
• Understand the value behind the products. Do not just choose based on the lowest price—consider the impact on the industry and local employment.
• Urge the government to take action. Protection for Indonesia’s textile industry is crucial to ensure local products can survive amid the flood of imports. This includes implementing stricter regulations on imported goods, offering tax incentives for local manufacturers, and promoting sustainable textile initiatives.

Sritex’s bankruptcy is a harsh reality we must face. However, we can still prevent the same fate from happening to other textile companies. By supporting local products like TRI Cycle and demanding better policies, we can ensure that this industry continues to thrive. Let’s work together to sustain Indonesia’s textile industry!