Sritex’s Strategies to Overcome Declining Domestic Demands

Declining demands for domestic textiles and textile products had forced PT Sri Rejeki Isman Tbk (Sritex) to seek ways for maintaining performance, such as by increasing the company's fabric production allocation to the global market. As quoted by Bisnis.com, Thursday (9/19) Sritex Communication Head, Joy Citradewi, said it previously estimated export allocations to 60 percent this year. However, the Sritex fabric sales portion in the global market had exceeded initial estimates at 60.32 percent in late last year. Therefore, Sritex increased global fabric sales estimates to 62 percent – 65 percent.

Sritex has not planned to increase fabric production installed capacity this year. However, the SRIL stock-coded company would increase its fabric production utility to 90 percent by the end of this year from 86 percent. Sritex is optimistic about spurring its performance by 10-12 percent by harnessing the ongoing US-China trade war, in addition to the projected increase in domestic demands, thanks to the implementation of the safeguard.