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Jakarta Post

100,000 retail workers on brink of furlough as consumption free-falls

  • Mardika Parama

    The Jakarta Post

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Jakarta   /   Tue, September 29, 2020   /  02:00 pm
The Jakarta Post Image
Shop attendants wearing face shields wait for customers at a mall in Serpong in Tangerang, Banten, in this undated photo.(JP/R. Berto Wedhatama)

More than 100,000 workers in the retail industry face the risk of being furloughed as customers have been visiting rarely and spending little during the COVID-19 pandemic, associations have said. An internal survey by the Indonesian Shopping Center Tenants Association (Hippindo) revealed that retail sales from May to July were down about 80 percent from the pre-pandemic level. The association projected that lifestyle retailers would also post a 60 percent year-on-year (yoy) contraction in the third quarter. “Our current data [from 90 companies] show that around 100,000 employees may be furloughed,” Hippindo chairman Budihardjo Iduansjah told reporters during an online press conference on Monday. In addition to the furloughed employees, around 1.5 million workers could face other financial perils, such as pay cuts and shift reduction if the pandemic continues to suppr...