PT Sri Rejeki Isman (Sritex) is a huge textile company, but is it too big to fail?

There have been widespread calls for the government to come to the rescue of the Central Java-based manufacturer since it was declared bankrupt last week following a judgment it is appealing.

Something must be done, is the essence of the appeals made by both leaders and workers’ representatives, but what could be done is far from clear.

The Ministry of Industry reportedly asked the company itself to develop a plan, much as a doctor asks a terminally ill patient to suggest treatment.

President Prabowo Subianto summoned Manpower Minister Yassierli, Finance Minister Sri Mulyani Indrawati and Coordinating Minister for Economy Airlangga Hartarto on Tuesday to discuss Sritex.

Emergency funds or incentives would be on the table. A bailout plan has even been mooted for the company, whose total liabilities stood at around $1.6 billion as of June.

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However, the idea that the state is using taxpayer money to save a private textile company is problematic for several reasons, and the desire to save jobs is a weak argument to justify such a move.