Two big players in the textile and garment industry in the country have been plagued by a number of big problems lately.

First, PT Sri Rejeki Isman Tbk (SRIL) aka Sritex, which has accumulated debt and has been sued several times for postponement of debt payment obligations (PKPU).

In fact, most recently, due to past the debt interest payment deadline, the global rating agency Fitch has lowered Sritex's rating from C to RD (Restricted Default).

This Restricted Default Rating is a debt rating that is one level above D or default (default).

Second, Wednesday (5/5), PT Pan Brothers Tbk (PBRX) was also demonstrated by the company's factory workers. This demonstration is the aftermath of the workers' dissatisfaction with the company's policy of paying the holiday allowance (THR) in installments.

Pan Brothers management admits that the company's limited cash flow has made the company offer a gradual THR payment mechanism. Indeed, Pan Brothers is currently also experiencing liquidity problems and is crushed by debt.

Fitch Ratings also lowered Pan Brothers' Long-Term IDR rating to C from previously CC.

In the midst of this turmoil, actually Sritex and Pan Brothers are among the textile issuers who are diligently exporting their products to foreign markets.

Sritex has been recorded as a manufacturer of army uniforms for the North Atlantic Treaty Organization (NATO) and army uniforms for a number of countries, including the Philippines.

Meanwhile, Pan Brothers is also listed as a clothing maker from well-known brands such as Adidas and Uniqlo.

According to financial reports as of the end of December 2020, Sritex's export segment portion outperformed sales in the local market.

Sritex's product exports in 2020 reached US $ 762.37 million or equivalent to IDR 10.67 trillion (assuming an exchange rate of US $ 1 = IDR 14,000). This figure includes 59.44% of the company's total sales throughout 2020 which amounted to US $ 1.28 billion.

In more detail, as of 2020 Sritex exported yarn products worth US $ 295.97 million, finished fabrics worth US $ 211.72 million, apparel amounting to US $ 217.81 million and raw fabrics worth US $ 36.87 million.

Last year, sales in the domestic market amounted to US $ 520.19 million. The details are sales of US $ 227.60 million for yarn, US $ 125.43 million for finished fabrics, US $ 129.40 million for apparel and US $ 37.76 million for raw fabrics.

In the Sritex financial report, it is explained that there are no sales to related parties that exceed 10% of total sales, so there are no details.

Regarding exports, Sritex is noted to be diligent in selling its products to the markets of Asia, Europe and Africa.

In 2020, Sritex's textile product exports were recorded the most to the Asian continent, amounting to US $ 448.74 million. Then, to the markets of the United States and Latin America amounting to US $ 119.13 million. Furthermore, Sritex's exports to Europe reached US $ 113.97 million.

Not only that, this company owned by the Lukminto family also exports its products to the United Arab Emirates (UAE) and the African continent for US $ 78.52 million and to Australia for US $ 2 million.

Quarter three money, Pan Brother also relies heavily on sales of the company to foreign markets.

Of the total sales during the third quarter of 2020 which amounted to US $ 523.79 million or equivalent to Rp 7.33 trillion, export sales contributed 85.83 percent or US $ 449.59 million. Meanwhile, domestic sales amounted to US $ 75.40 million.

Geographically, the Asian market is the main export destination for Pan Brothers' products with a contribution of export sales of US $ 280.36 million.

In second place, followed by the American continent with a sales value of US $ 158.49 million and the third European continent with US $ 72.28 million. Meanwhile, other export markets contributed US $ 12.65 million.

As mentioned above, Pan Brothers is also known as a producer of well-known fashion brands, Adidas and Uniqlo.

As of September 2020, the company's sales to brands, namely Adidas Sourcing Ltd, were valued at US $ 81.69 million, while sales to Uniqlo were US $ 75.98 million.