Pity! Impact Of Emergency PPKM, Shopping Center Losses Reach Rp5 Trillion Per Month

Illustration. (Photo: Unsplash)

JAKARTA - The Indonesian Shopping Center Management Association projects that the implementation of Emergency PPKM has the potential to reduce mall revenues by as much as Rp5 trillion per month. Chairman of APPBI Alphonzus Widjaja explained that the loss stemmed from the loss of rent and service charge of the shopping center tenants who were forced to close their business activities.

Currently, said Alphonzus, APPBI has around 350 members throughout Indonesia. As many as 250 members were most severely affected by the implementation of Emergency PPKM in the Java-Bali region.

"So if these retailers ask for a policy or don't pay at all, we will lose potential revenue of around Rp5 trillion," he said in a virtual discussion, Thursday, July 22.

Furthermore, Alphonzus said the details of the loss of closing the operations of the Java-Bali shopping center dominated up to Rp3.5 trillion. Meanwhile, outside this area, the loss of operational restrictions reached Rp1.5 trillion.

Because of that, Alphonzus said that the losses would increase according to the implementation of the Emergency PPKM policy carried out by the government in the future.

"If the PPKM is for two months, it's just multiplied by two, so the Java-Bali (loss) becomes Rp7 trillion. Meanwhile, for the whole of Indonesia, there is the potential for a loss of approximately Rp10 trillion," he said.

On the same occasion, the Chairman of Aprindo Roy Mandey said that closing supermarkets such as malls, supermarkets, and hypermarkets will have a very large multiplier effect.

Roy said, one of the impacts is that it will make the MSME sector that supplies retail die. Not to mention workers in the informal sector close to retail activities, which will disrupt the economy.

In fact, Roy continued, industrial sectors such as food and beverage will also be confused about selling their products.

"If retail dies, can it survive? Where do you want to sell (the product)? Then there is outsourcing of cleaning services, maintenance, and others. People whose daily salary will have problems with purchasing power," he said.