Losses On Business Transactions Due To The February Floods Are Not As Big As January

JAKARTA - Losses in economic transactions due to the Jakarta floods that occurred on Tuesday, February 25 were not as big as the floods at the beginning of the year, January 1.

Chairman of the DPD Association of Indigenous Indonesian Entrepreneurs (HIPPI) DKI, Sarman Simanjorang, estimated that the Jakarta business center experienced economic paralysis of up to IDR 56 billion in the February 25 flood. The main reason is that many shops are closed due to flooding on weekdays.

"Actually, not all shops were closed because the area was affected by flooding. However, most shops were closed because the employee holding the key to the stall did not enter. As we know, there are many shops whose keys are held by employees," Sarman said when confirmed, Sunday, March 1. 2020.

Meanwhile, the shopping areas that were not affected by the flood also experienced a decline in sales profits. Because, said Sarman, people have the mindset that going out during the rainy season is troublesome for them.

"If it is cloudy, they are reluctant to leave the house. Those who want to eat lunch, shop, eventually give up their intention even though their house is not affected by flooding," he said.

He explained that the total loss from business center transactions reached IDR 56.72 billion. Retail shops have decreased the number of buyers by up to 50 percent. In addition, of the 1,000 retail stores in Jakarta, around 400 have closed due to the flood.

According to Sarman's calculation, if every retail shop is usually visited by 80 people, then on that day only 16 thousand people will come to the retail store.

"If the average customer spends Rp. 250 thousand in one day at the store, that means the estimated transaction loss is around Rp. 4 billion at a retail store," he said.

Furthermore, there are 20 traditional shops with some of the stalls closed during the flood. It is estimated that a total of 2.5 thousand stalls are not open. With a turnover of IDR 500 thousand per day, the loss is IDR 1,250,000,000.

Restaurants also experienced a decline in turnover by an average of 50 percent. Sarman said, with a total of 3,957 restaurant outlets in Jakarta, it is estimated that the transaction loss is around Rp1,978,500,000 in a day.

On average, the areas with the most losses were Kelapa Gading and Glodok, Mangga Dua.

About 80 percent of the 9 business centers in Kelapa Gading are closed all day. The total economic loss is estimated at IDR 18 billion. Meanwhile, in the Glodok, Mangga Dua area, there are 6,300 stalls closed or about 60 percent of the 21 shopping center locations there. The total loss reached IDR 31.5 billion.

"The revenue loss experienced by retail stores during the February 25 flood was not as severe as on January 1. Because, at the time of the flood at the beginning of last year, many shops did not anticipate it because they were busy doing activities on New Year's Eve," he said.

Meanwhile, based on a release from Sarman on January 14, he stated that the floods that hit the Jakarta area on January 1 then brought material losses to businesses. The estimate, this loss could reach IDR 1 trillion.

Sarman explained that the loss was based on the income turnover of a number of business establishments that were supposed to operate. However, due to the flood, the circulation of money was paralyzed.

"This flood has hit business players in various sectors, such as retail, restaurants, MSME players, tourist destinations, taxi managers, Grab and Gojek," said Sarman.

In the retail sector, Sarman estimates that 400 stores are directly affected so that they cannot serve customers. According to him, if a store has about 100 customers, assuming an average expenditure of Rp. 250 thousand per person, then the loss could reach Rp. 10 billion per day.

Sarman assumed that shopping centers lost 50 percent of visitors during the flood. Usually, during the New Year holidays, visitors can reach 5,000 people, assuming that they spend Rp 200 thousand. At that time, transactions could reach Rp. 82 billion with a total of 82 malls in Jabodetabek. "If visitors decrease by about 50 percent, the transaction loss will reach Rp. 41 billion," he said.

In addition, there are 28 traditional markets that were affected by the flood, with 250 traders per market and 7,000 traders. "If the average sales are around 500,000 per trader, the transaction loss will reach Rp3.5 billion," he said.

Furthermore, the number of restaurant outlets in DKI Jakarta that were affected by the flood was 3,957. There was a decrease in turnover by an average of 50 percent per restaurant. If each restaurant has a minimum transaction of IDR 2 million, the transaction loss will be IDR 7.9 billion.

Furthermore, Sarman estimates that the transportation sector will experience a decline in turnover of up to 70 percent. The number of online taxis in Jabodetabek reaches 36,000 vehicles. If the turnover decreases by around Rp. 100,000, the transaction loss will reach Rp. 3.6 billion.

"Meanwhile, the number of online motorcycle taxis in Jabodetabek has reached 1,250,000 drivers. If the turnover drops to an average of Rp. 25 thousand, the transaction loss will reach Rp. 31.25 billion," he explained.

In addition, the tourism sector also experienced a decline in income. Visitors to Ancol, Kota Tua, Monas, TMII, and the Ragunan Zoo have certainly experienced a decline. The assumption is that these tourist attractions are reduced by 50-70 percent.

"Transaction losses in Ancol could reach Rp15.5 billion, Kota Tua and its entire museums could reach Rp3.5 billion, Monas could reach Rp10 billion, TMII could reach Rp3.15 billion, and Ragunan reach Rp5.4 billion," he explained.

If you add up the overall transaction losses from the money turnover due to the 2020 extreme floods, it could reach IDR 135,054,000,000 per day. If you multiply it for 5 days during the holiday season in flood conditions, the estimated loss will reach a minimum of IDR 675 billion.

This calculation does not include direct losses to market traders whose merchandise is not selling well, as well as the repair costs of around 1,500 taxis that were submerged.

"If coupled with direct losses to taxis and market traders of around Rp. 370 billion, the estimated loss will reach Rp. 1.05 trillion," said Sarman.