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Businesses feel pain of new COVID-19 policy. Economists say it’s necessary
As industry associations call for the government to ease restrictions a week into the latest PPKM policy, two economists underline that reducing daily virus cases is key to restoring consumption.
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A woman wears a mask as she sits alone on Christmas Day 2020 in an empty restaurant in Yogyakarta. (JP/R. Berto Wedhatama)
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ndustry associations have called in desperation for the easing of the latest COVID-19 restrictions and more government support to help companies survive the pandemic, even as Indonesia watches the number of new cases go off the scale following the 2020 year-end holiday season.
The call comes following the imposition of the public activity restrictions (PPKM) on Jan. 11 for two weeks in Java and Bali, which falls during what the associations claimed was a “crucial sales period”.
Representing several industries that recorded gains from the rise of the middle class prior to the public health emergency, the Indonesian Employers Association (Apindo), the Indonesian Shopping Center Association (APPBI), the Indonesian Hotel and Restaurant Association (PHRI) and the Indonesian Commercial Tenants Association (Hippindo) issued a joint statement on Monday that detailed their pleas for easing restrictions and additional business relief assistance for retailers, restaurants, shopping malls and hotels.
Specific demands include allowing restaurants and retail stores to operate until 9 p.m. at 50 percent dine-in capacity.
“The social restrictions have kept Indonesian businesses from being able to make even the most basic decisions on matters like cash flow and employees,” Apindo chairman Hariyadi Sukamdani said during a press briefing on Monday.
Hariyadi said the PPKM was a crushing blow to shopping malls, hotels, restaurants and retail outlets that were already suffering from last year’s “pandemic pain”.
