Layoffs Threatens, Hakulyakin Indonesian Entrepreneurs Enter a Recession

Jakarta, CNBC Indonesia – Chairman of the Indonesian Employers’ Association (Apindo) Hariyadi Sukamdani said that the impact of Large-Scale Social Restrictions (PSBB) in DKI Jakarta, which is getting tighter, will have a worse impact than the initial PSBB from an economic perspective. This condition will have a negative impact on ability cashflow or the ‘breath’ of the business world.

“Because currently the company’s working capital is running low after the first PSBB yesterday. This is actually a recovery stage. If this (PSBB) later layoffs (termination of employment), conditions will drop again. Minus economic growth (quarter III-2020), we must can understand together, “said Hariyadi, to CNBC Indonesia, Monday (14/9).

He said that in conditions like this, where the company’s business is decreasing, it is impossible to bear very large employee costs. The worst potential, employees are still released, but not with severance pay, but to contract employees with certain contact agreements or contracts that expire, but are not extended.

“When we entered the transition period, the recovery has begun to stretch so that it is already running. We are starting to pay our employees, meaning that employees have more purchasing power. If they are closed again, they lose purchasing power, this will also be prolonged. PSBB how long we do not know the future conditions,” he explained.

This long impact is also a concern of the retail industry. Tutum Rahanta, the Advisory Board of the Indonesian Shopping Center Tenants Association (Hippindo), said retail stores could take the worst possibility even though they were still allowed to operate during the more stringent PSBB period. This possibility is the termination of employment (PHK) for employees whose outlets do not have good potential.

“The closure of outlets is usually chosen (considering) whether the six months or one year will still survive. If you look at the ability of the outlet to be unable to survive in one year, it is usually amputated. Because why? To maintain our remaining good outlets. , “he said, Monday (14/9).

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