Jakarta –
Two start-up companies or startups in the country, PT Fintek Karya Nusantara (Finarya) or LinkAja and Zenius Education recently laid off hundreds of employees.
In response to this, the Executive Director of the Institute for Development Economics and Finance (INDEF) Tauhid Ahmad said that in general the large scale occurred for two reasons.
“First, they want to restructure because there is a business scenario. Second, their performance achievement is still not good, so they are doing efficiency,” he said, to detik.comThursday (26/5/2022).
Companies that are experiencing a decline in performance, continued Tauhid, before taking massive layoffs usually have tried to make changes, but to no avail. So the scenario taken is layoffs.
“But the point is, in this case, workers’ rights should not be eliminated, especially for state-owned companies,” he explained.
Tauhid added, currently the bubble burst phenomenon is hitting startups in Indonesia. Bubble burst can be seen from the company’s poor performance.
According to him, this bubble burst could hit LinkAja and Zenius, just like what happens to startups in general.
Meanwhile, Bhima Yudhisthira. The Director of the Center of Economic and Law Studies (CELIOS) said that the reason for the layoffs of several startups was due to funding difficulties after business plans were affected by the COVID-19 pandemic and a significant decrease in users.
He explained, actually during the pandemic there was a surge in internet subscribers but not all startups felt it evenly
“The macro factor is the increase in interest rates in various countries, making investors look for safer assets. As a result, technology startup stocks are considered high risk. So many predict this year is the startup winter, aka massive sell-off pressure in the digital industry, ” he said.
Finally, continued Bhima, many startups have difficulty getting new funding and investors are increasingly selective in choosing startups.
(eds/eds)
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