Jakarta, CNN Indonesia —
Chairman of the Indonesian Employers Association (Apindo) Hariyadi Sukamdani said the company’s financial cash flow would be even more difficult if the government carried out the scenario Emergency PPKM for six weeks. This has the potential to increase the number of companies that went bankrupt in the midst of the COVID-19 pandemic.
“After a long time without money, it will go bankrupt. Can’t stand it, can’t stand it,” said Hariyadi to Hariyadi CNNIndonesia.com, Tuesday (13/7).
He admits this situation will be very difficult for entrepreneurs. This is because the income has the potential to be minus if the emergency PPKM is extended more than 20 July 2021.
“It’s heavy. Money doesn’t come in at all. There is no income. So it’s difficult, very difficult,” continued Hariyadi.
According to him, all business sectors outside of health will be affected by the emergency PPKM. This includes restaurants that are still allowed to operate even though they can only serve take-away orders.
“That person doesn’t all want it every day delivery. Expensive. Just imagine that per person it costs Rp. 40 thousand-Rp. 50 thousand, if one house has many people, it is heavy. The family usually cooks,” explained Hariyadi.
Similarly, Deputy Chairperson of Indonesian Hotel and Restaurant Entrepreneurs (PHRI) Emil Arifin said that the emergency PPKM made businessmen’s finances even more difficult. Because, service take away on average only contributes to the total income of about 10 percent-20 percent.
“So it doesn’t close restaurant operations either. That’s a maximum of 20 percent, yes,” said Emil.
He asked the government for four conditions if the emergency PPKM was extended. First, the government helps with rent.
Second, The government provides assistance for electricity and water costs. Third, there is a stimulus for land and building tax (PBB).
Fourth, the government subsidizes employee salaries. If all this is given, Emil admits that he will not have a problem with the extension of the emergency PPKM.
“If it is given by the government, go ahead. One year ‘dijabanin’, “he said.
The CEO of the Sintesa Group and the former Deputy Chairperson of the Indonesian Chamber of Commerce and Industry, Shinta Widjaja Kamdani, agreed with the two business partners. He said the emergency PPKM scheme for four to six weeks would be very burdensome for business actors.
“We don’t know how far business actors can survive during this emergency PPKM,” said Shinta.
He said the heaviest impact would be felt by MSME actors. This is because their business capital is not sufficient to last more than four weeks in the midst of a drastic decline in income due to the emergency PPKM.
Even so, Shinta is aware that the current situation is precarious because cases of Covid-19 transmission have continued to soar in recent times. He hopes that the government will provide a number of economic stimulus to reduce the burden on entrepreneurs.
“Provide the economic stimuli needed by business actors to continue carrying out economic activities with the most efficient operational costs,” explained Shinta.
Previously, Finance Minister Sri Mulyani revealed that the emergency PPKM scenario could last up to 6 weeks. This was done to reduce the spread of COVID-19.
“Emergency PPKM is carried out for four to six weeks to contain the spread of cases. Community mobility is expected to decrease significantly,” Sri Mulyani wrote in a virtual meeting with the DPR Banggar earlier this week.
(aud / sfr)
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