A year Jokowi, retail entrepreneurs languished because of Covid and pressed credit interest

ILLUSTRATION. Retail Sector Recovery: Visitors at a shopping center outlet in Jakarta, Tuesday (16/6).

Reporter: Selvi Mayasari | Editor: Azis Husaini

KONTAN.CO.ID -JAKARTA. The one year period of Jokowi-Ma’aruf administration helped boost the national economy. Retail industry players also appreciate the realization that has continued from the previous administration to the new government with a new cabinet.

The Indonesian Retail Entrepreneurs Association (Aprindo) sees the seriousness of the Jokowi administration in developing infrastructure that connects goods and retail distribution because it really needs an adequate infrastructure.

“We see that the government’s seriousness in supporting the consumption sector as a contributor to our gross domestic product is very clear, such as the problem of supply and repair, how is our food security, our food availability both in terms of staple food and non-staple foods,” he said. Roy Nicholas Mandey, Chairman of Aprindo when contacted by Kontan.co.id, Monday (19/10).

Then from the side demand and supply his party saw many things related to food barns that were launched by the government, such as in Kalimantan.

This is an exploration of the supply sector so that food security can be better. Then from the demand side, the existence of job creation for the community that continues to be dynamic, until the issuance of the omnibus law, according to Roy, is a clear proof.

“We can see the realization of efforts, namely through the existence of an omnibus law so that of course the public can also be absorbed by investors, both domestic and foreign, who invest their capital or build factories in the country. Hopefully with the omnibus Law that continues to be our work can be absorbed well, “explained Roy.

Roy admitted that before the pandemic the retail industry should have increased because retail growth was very significant. After the pandemic, of course the retail industry was affected, but Roy said it was not because of the pandemic but because of social restrictions in various regions so that retail was affected without paying attention to the situation or economic conditions.

Roy said that local governments still have patterns which of course may have the same enthusiasm as the central government, but the methods are different in dealing with Covid-19 and this is what sometimes causes the end to overcome this pandemic in terms of health and also the economy often becomes lame or imbalanced.

“The local government only prioritizes health, even though the economy and health must be balanced, there is gas and brake. Not allowed to brake continuously lockdown which in the end our economy collapsed, “said Roy.

According to Roy, there has not been a 100% synchronization of understanding and education between the central government and local governments regarding the handling of this pandemic. Then from the community level, discipline and mental attitude in facing the pandemic still need to be improved because it is still weak. So, from these two levels, according to Roy, the government and society both need to be addressed.

Retail industry players hope that they will still have access to receive subsidies for national economic recovery assistance that were disbursed by the non-MSME credit corporation which was disbursed at the end of last July. Roy admitted that modern retailers and malls have not received credit corporations with low interest rates.

He revealed, the income of business actors is lower than the costs that must be incurred, even mostly for some local retailers, small retailers have to go out of business first because they do not have reserves of funds or equity reserves when equity is used to keep operating. during this pandemic. So, corporate credit assistance is urgently needed to be accessible to retailers who are currently inaccessible.

In addition, he hopes that there will be tax relaxation which can be continued and extended for the next one year related to tax relaxation in the case of PPH 21 and final PPH rather than entities or corporations. Then in monetary policy, he hopes that a reduction in interest rates that can reduce commercial credit is necessary to enable retailers to continue operating.

In the midst of the Covid-19 pandemic, retail industry players are also doing efficiency in all things including cost efficiency, inventory efficiency, and also labor efficiency which according to Roy is very concerning because when it comes to labor efficiency it means that income cannot cover so one- the only way is the efficiency of labor by laying off or laying off workers. This is what retailers do when they do not have access to such a credit corporation.

Aprindo sees opportunities in the next year if there are no obstacles, if the vaccine can be given, there will be an increase in economic growth of 4.5% -5%. When the vaccines can be realized and distributed in the first quarter of 2021, the recovery will begin in the second quarter.

In addition, he hopes that the consumption sector can recover, the omnibus law is also expected to be rolling so that it can absorb significant investment. Because of these two components, the expected consumption and investment in 2021 can be concrete and the realization can be seen.

While the challenge is when the vaccine cannot be realized, it becomes the main challenge during a pandemic, and the second challenge which is what really makes the retail industry unable to progress is an internal challenge where internal from one group or group wants to prioritize the interests of the group. from the public interest or there are political aims and objectives mixed with group interests. According to Roy, the interests of this group will be eroded by energy, thought and energy to seize the opportunities that are already ahead.