Bad News From Non-Food Retailers, Subsidiary Of Conglomerate Mochtar Riady Says 100 Percent Of Employees Laid Off Due To Emergency PPKM

Illustration. (Photo: Unsplash)

JAKARTA - The government has implemented an Emergency Community Activity Restriction (PPKM) policy starting from 3 to 20 July. In this restriction, the government prohibits non-food retailers from operating. As a result, non-food retailers have laid off 100 percent of their employees.

Chairman of the Indonesian Retail Entrepreneurs Association (Aprindo) Roy N Mandey said that retail businesses, especially non-food items, could not operate during the Emergency PPKM period. As a result, sales fell by 90 percent.

Furthermore, Roy said that retailers cannot do anything with the Emergency PPKM. Because they are not allowed to operate, employers are forced to lay off employees.

"In total, non-food retailers have laid off 100 percent of their employees. For food, about 30 percent have been laid off. And if they are laid off, they only get 50 percent of their salary. So their purchasing power will also be crushed," he said when contacted, Tuesday, July 13. .

Furthermore, said the Independent Vice President Commissioner of PT Multipolar Tbk, although food retailers can still operate during the Emergency PPKM period, it does not mean that their income will not decrease. Food retailers experienced a 50 to 60 percent decline in sales.

"So even if food retailers or supermarkets are still able to open, it doesn't mean the turnover is good. Not really. If people reduce visits and shop by phone or application and spending is limited to basic needs and basic needs. (So) there is no other shopping -other, no unplanned spending," he said.

In addition, said Roy, food retailers operating during the Emergency PPKM period also reduced employees. One way to do this is by implementing a shift system.

"The food retailers are still running, even if they reduce shifts or reduce the workforce in each shift," he said.

To be able to survive during the Emergency PPKM period and in the midst of high cases of COVID-19, said Roy, retailers no longer continue the contracts of employees who have finished their work.

"If (employees) whose contracts have not been extended first and those who retire or who do not perform, of course we will not hire again. I do not know the amount," he said.