Warehouse on fire, Sritex (SRIL): Loss borne by insurance
KONTAN.CO.ID – JAKARTA. The PT Sri Rejeki Isman Tbk (SRIL, member of the Kompas100 index) backup cotton warehouse suffered a fire on Friday (9/27) at 21:30 WIB. This fire occurred in the Sritex 2 complex, Sukoharjo, Central Java.
The chronology of this incident was revealed in a written statement released on the SRIL website on Saturday (9/28). A fire at one of the SRIL warehouses occurred on Friday (9/27) at 21:30 WIB. Then the fire department started arriving at the location 15 minutes after the first report.
Until now, SRIL is still waiting for the forensic report from the police. Allegedly, the fire was due to long drought weather that caused excessive heat in cotton fibers (natural fibers) which are flammable.
Corporate Communications Sri Rejeki Isman Joy Citra Dewi stated that until now the amount of losses incurred by SRIL cannot be disclosed because it is still in the verification stage.
“As for the current projections, the amount of losses due to this disaster is insignificant and has been insured,” he explained to Kontan.co.id, Sunday (9/29).
Joy said the entire warehouse was covered by insurance so that it would not affect the company’s cash. SRIL is currently preparing for its claim.
SRIL stated that there were no fatalities in the fire and that the fire did not spread to other factory areas due to the separate warehouse position of raw material reserves. Yarn production process located in the same complex is not interrupted so that it does not affect the company’s production projection this year.