Unable To Survive In The PPKM Period Because Turnover Drops 80 Percent, MSME Association Asks For Cash Assistance For Food

JAKARTA - The Indonesian MSME Association (Akumindo) revealed that the micro, small and medium enterprises (MSMEs) sector is difficult to survive during the implementation of level 4 community activity restrictions (PPKM) in Java-Bali. The reason is, there are restrictions on community activities that cause a drop in turnover. Therefore, Akumindo asked the government to provide cash assistance to MSME actors.

Chairman of Akumindo Ikhsan Ingratubun said that the extension of the PPKM made the business climate unhealthy. Because, the absolute requirement for advanced MSMEs in Indonesia is a sound business license. The implementation of these activity restrictions has had a major impact on the resilience of MSMEs.

Furthermore, Ikhsan asked the government to provide assistance in the form of cash for MSME actors in order to survive in this level of PPKM. This is because MSME actors are currently still haunted by the endless continuation of PPKM.

"What is certain is that they need assistance during PPKM, which (makes) their turnover decline. Meanwhile, they eat on average through that turnover. What is needed is cash. Micro, Small and Medium Enterprises (SMEs) businesses can get a maximum of Rp. 200 thousand per day. get Rp200 thousand because there is PPKM," he said, when contacted by VOI, Thursday, August 5.

Ikhsan claims that MSMEs have experienced a decline in turnover of up to 80 percent due to the extension of PPKM level 4 in Java and Bali. This is because the type of merchandise sold by MSMEs is highly dependent on human interaction.

"The turnover has decreased by around 70 to 80 percent, it's much decreased. Okay, people say it can be done through digital, but digital only helps 10 to 15 percent of normal turnover," he said.

According to him, the condition of declining turnover has almost occurred in all MSME business sectors, from culinary, clothing to tourism. While the hardest hit is in the tourism sector because it relies heavily on the number of tourist visits.

If PPKM continues, said Ikhsan, the people's business which has been the backbone of the national economy will not last much longer. Therefore, the government was asked to reconsider the extension of the PPKM which hit the business world very badly.

"The implementation of PPKM has an impact on MSME businesses, their turnover and also bankruptcy will certainly occur. But how much we have not been able to elaborate," he said.

As is known, President Joko Widodo (Jokowi) has decided to extend the implementation of Level 4 Community Activity Restrictions (PPKM) from August 3 to August 9, 2021. The extension applies to certain districts or cities.

To reduce the burden on the community, the government continues to encourage acceleration in social assistance for the community. The assistance includes the Family Hope Program (PKH), cash social assistance (BST) and village cash assistance (BLT Desa). There is also assistance for micro and small businesses, street vendors and food stalls, as well as salary subsidies.