Emergency PPKM Called Making Waves of Business Roll Mats

Jakarta, CNN Indonesia —

circle entrepreneur assessing the Enforcement of Restrictions on Community Activities (PPKM) micro emergency has the potential to add to the list of companies that are permanently closed aka bankrupt. In particular, the sector retail, hotels, and restaurants that depend on community mobility.

Deputy Chairperson of the Indonesian Hotel and Restaurant Association (PHRI) Maulana Yusran said the financial capacity of hotel and restaurant entrepreneurs to survive in the midst of the pandemic was running low. Moreover, demand has not yet recovered, as reflected in hotel occupancy, which has stagnated at around 30 percent.

“With this emergency PPKM condition, what is the story, will the government provide a stimulus? Otherwise they can close permanently, because of their inability to survive anymore,” he explained to CNNIndonesia.com, Wednesday (30/6).

According to him, the emergency PPKM will restore economic conditions to the same as the April-June 2020 period during the PSBB. The difference was that entrepreneurs at that time were still strong enough to support operational costs despite the restrictions.

“2020 business actors still have breath because of the beginning of the pandemic, the difference is that in 2021 their breath can actually be said to be gone. The pandemic has been more than a year and a half, demand is still on and off, sometimes it appears sometimes not because there is a policy of restricting mobility and operating hours,” he added.

Similarly, General Chairperson of the Indonesian Retail Entrepreneurs Association (Aprindo) Roy N. Mandey said that a number of retail outlets have the potential to close due to the emergency PPKM.

“Restrictions have resulted in the decline of MSME merchandise, sales of their products have become unsold, the productivity of the manufacturing sector, food and beverage sector has slowed, and the potential for closing retail outlets is inevitable,” he said in an official statement.

According to him, this condition will cut household consumption as the biggest contributor to Gross Domestic Product (GDP). Ultimately, the slowdown in economic recovery. Therefore, he hopes that the government will reconsider the restrictions on retail outlet operations in the emergency PPKM plan.

“Aprindo stated that the operational restrictions on the modern retail sector and malls as essential sectors that provide basic and daily needs are very ineffective and irrelevant. Whatever the situation, people will continue to fulfill their basic and daily needs which cannot be eliminated or postponed,” he stressed. .

Meanwhile, General Chairperson of the Indonesian Indigenous Entrepreneurs Association (HIPPI) Sarman Simanjorang assessed that the emergency PPKM would prolong Indonesia’s economic recession. “This policy will have the potential to further prolong the economic recession,” he said.

Through this policy, he predicts that DKI Jakarta’s economic growth will still be minus in the second quarter of 2021, after contracting 1.65 percent in the first quarter of 2021.

This will have an impact on the national economic growth target in the second quarter of 2021 by 7 percent, considering that DKI Jakarta’s contribution accounts for around 17.17 percent of national economic growth.

“If Jakarta’s economy is still minus in the second quarter of 2021, it will be a bit difficult for us to achieve national economic growth at 7 percent,” he said.

The PPKM policy, he continued, is very difficult for entrepreneurs. Restrictions on operating hours and the number of visitors will reduce the company’s turnover, profit, and cash flow.

“This policy will target all business sectors, this is a very difficult situation and condition for business actors,” he said.

[Gambas:Video CNN]

(ulf/one)

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