List Of Industries That Never Recover From The Impact Of COVID-19

Textiles (Photo: Antara)

JAKARTA - Head of the Department of Industrial and Regional Research at Bank Mandiri Dendi Ramdani said a number of industrial sectors had not fully recovered after the COVID-19 pandemic plus slowing global economic conditions.

According to him, industries that have not fully recovered are the air transportation industry, textiles and textile products, furniture, oil and gas and coal ticketing, rubber, and food crops.

Dendi said that for the air transportation sector, the recovery ratio in the first quarter of 2024 compared to the fourth quarter of 2019 was only 93.6 percent. Due to the level of full seats that did not come full due to ticket prices that were still too high.

"So the main problem was that the plane's capacity was still lacking and both ticket prices were expensive," said Dendi at the Mandiri Macroemic Outlook Tuesday, May 14, 2024.

Meanwhile, the textile and product industry from textiles or TPT has only reached 98.8 percent, and furniture has only reached 97.4 percent. According to Dendi, the two industries have not recovered because global economic growth has not recovered, thus reducing the export performance of the industry.

Dendi said this was reflected in the export performance of the textile industry and textile or textile product or TPT which contracted 5 percent in March 2024 and the furniture industry which contracted by 3 percent.

"Contraction in furniture and garment is clear because there is indeed a decline in demand in developed countries or in export destination countries," he said.

Dendi said that the oil and gas and coal mining sector had only 96.2 percent of the recovery, and only 96.1 percent of the gas industry sector. According to him, not the two sectors have experienced a decline because their reserves have decreased.

Meanwhile, the recovery rubber industry is in the slower category with a ratio of only 87.2 percent, oil and gas mining and geothermal only 82.5 percent, and food crops with a recovery of only 73.6 percent at the latest.

According to Dendi, the rubber industry is still under pressure, although in terms of price, it has started to rise again because this industry is facing structural problems because production has not developed due to many rubber plantations being diverted to palm oil.

"So it's also natural to actually plant palm oil more profitable. And if oil and gas mining is also due to natural reserve and food crop problems, it's still relatively below because yesterday the weather factor," he said.