When Will Retailers Like Matahari, Carrefour, Etc. Rise Up? This Is The Entrepreneur's Explanation

Illustration. (Photo: Doc. Antara)

JAKARTA - The modern retail industry sector is one of the sectors most affected by the policies related to the COVID-19 pandemic. Like when the government pulled the emergency brake, because retailers had to participate in limiting the number of visitors. However, the Indonesian Retail Entrepreneurs Association (Aprindo) is optimistic that the retail business, including modern retail, can recover in the second quarter of 2022.

Aprindo Chairman Roy Nicholas Mandey said the recovery of the retail business depended on tackling the COVID-19 pandemic. He said retail will recover when the pandemic has become endemic. This must also be supported by increased vaccination for the whole community.

"We predict for recovery, if we don't call it recovery now, but in the retail sector for downstream which is for household consumption in household retail, it will only recover in the 2022 semester. As long as the pandemic has become endemic and the 1-2 vaccinations (dose) already above 80 percent," he said in a virtual press conference, Wednesday, December 22.

Roy hopes that there will be an increase in vaccinations of up to 80 percent for both the first and second doses in order to encourage the sector to recover in 2022. The optimism for the recovery of the retail sector, said Roy, is also driven by the celebration of Eid al-Fitr in 2022.

"We hope that this can certainly be realized so that the second half of 2022 retail can recover. This, of course, coincides with the holy month of Ramadan or Eid until the end of 2022 has recovered," he explained.

Roy said the optimism was created even though Indonesia and other countries are currently still facing the COVID-19 pandemic. In fact, a new threat emerged with the Omicron variant. However, retail conditions are currently improving as evidenced by an increase from the previous quarter.

"In an atmosphere of tightening, we keep Omicron from spreading. At this time, we do have growth compared to the previous quarter," he said.

Furthermore, Roy said that while the Indonesian economy grew 3.51 percent in the third quarter of 2021, the modern retail business basically also grew in the range of 2.5 to 3 percent.

Even so, said Roy, this condition is down when compared to Indonesia's economic growth in the second quarter of 2021 which reached 7.07 percent and retail business growth of 4.5 to 5 percent.

"In retail, we can grow 3-3.5 percent better than the third quarter of 2021. Of course, this is our joint role in maintaining health protocols. In connection with the 2022 projection, like other sectors, it really depends on the handling of COVID-19," he said.