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Post-coup Myanmar: Should firms look forward to business as usual?
Myanmar’s military coup d'état in February has forced Indonesian businesses to make adjustments to their operations or even shift exports to other countries. The coup’s impact on trade with Indonesia may last until next year, says an economist.
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No games: Protesters make the three-finger salute reminiscent of the ‘Hunger Games’ movies as they take part in a demonstration against military rule in Yangon, Myanmar, on June 13, 2021. (AFP/Stringer)
T
he military coup in Myanmar has led to turmoil that disrupted business activities, including those of Indonesian companies inside the country, and led to a decline in trade with Indonesia.
Myanmar had undergone what seemed to be, on the face of it, a democratic transition, until the military seized power in February. It has since seen protests by democracy activists against the junta that resulted in hundreds of deaths and hundreds of thousands of people being displaced.
Publicly listed Indonesian pharmaceutical company PT Kalbe Farma was forced to look for new markets in Southeast Asia and Africa after its shipments to Myanmar declined in the wake of the coup, said Vidjongtius, the president director.
“We are now coordinating with the Kalbe team over there and the distributors, since medicines are still needed there, so we keep trying to ensure the availability of medicines even though activities are very limited,” Vidjongtius told The Jakarta Post in a text message on Wednesday.
Kalbe Farma, which is traded on the Indonesia Stock Exchange under the ticker symbol KLBF, recently built a factory in Myanmar. It was in the process of applying for quality certification, Vidjongtius said, adding that he expected the certification to be delayed by three to six months.
Read also: Kalbe Farma sales underwhelm investors
In March, the month after the coup, Indonesian exports to Myanmar were down 24.45 percent year-on-year (yoy) at US$70.9 million, according to Statistics Indonesia (BPS). The country’s imports from Myanmar fell 29.7 percent yoy to $18.9 million.
