Jakarta –
The retail industry is still sluggish, hit by the Corona virus. Losses haunt the retail sector amidst this sluggish business condition.
Head of the Association of Indonesian Shopping Center Retailers and Renters (Hippindo) Budihardjo Iduansjah said that this condition continues. A wave of store closings threatens retail stores.
Even the threat has started now. He revealed that several large retail stores had been closed, the company closed their shops to reduce operating costs.
“The wave of closing shops is already happening right now, just look at Ramayana, Hypermart, closing shops, so that’s because according to calculations they want to reduce costs. Shut down the shops that are not performing well and are losing money,” said Budihardjo to detikcom, Sunday (25/10/2020).
If many shops are closed, automatically layoffs will occur. He himself does not have data so far how many people have been laid off, it’s just that since the beginning of the pandemic there have been tens of thousands of dismissals.
“Now the losers are the more, the more shops are closed, the more potential layoffs will be. If this exact data is not available, so far there have been tens of thousands of homes,” said Budihardjo.
On the other hand, Budihardjo once said that around 1.5 million employees of malls in Indonesia are at risk of losing their income. Starting from being sent home, to being subject to termination of employment (PHK).
“The number of workers in us is around 3 million. That is 50% affected, it is the sector in the shopping center or mall. Now in the mall, if 50% is affected, it is certain that the figure will reduce his income, or be sent home. So the 1.5 million employees will happen, and that does not include their families, “Budi said in a webinar entitled In the Downfall of Tenants and Shopping Centers Facing Economic Recession, Monday (9/28/2020).
Budihardjo himself said that currently the retail sector has suffered losses. According to him, the retail industry could lose up to Rp 250 trillion this year.
“For all retail, yes, it could be around Rp. 400-500 trillion in revenue, if the drop was 50%, logically because of restrictions, yes, the loss could be Rp. 200-250 trillion, more than the loss,” said Budihardjo.
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