1,500 Retail Outlets Close Due To COVID-19, Employers Complaints To The Government: Should We Do Massive Layoffs?

Illustration. (Photo: Doc. Antara)

JAKARTA - The ongoing COVID-19 pandemic has made retail and shopping center entrepreneurs on the verge of bankruptcy. In fact, the condition is exacerbated by the absence of assistance from the government to corporations. As a result, one to two retail stores are closed every day because they cannot survive.

General Chairperson of Aprindo Roy N Mandey said that so far the government considers corporations to have large reserves of funds. So that the government is considered, has never paid special attention.

"Often we see that in the Emergency PPKM there is no assistance at all for the supermarket or mall sector corporations in this case. Why? Because the situation we are looking at is the lower sector. While we have to keep the lower sector awake, there are workers, " he said in a virtual discussion, Thursday, July 22.

Furthermore, said Roy, so far the government's policy has only been thinking about the trade sector of the small community, without paying attention to corporate entrepreneurs. In fact, said Roy, if the corporation collapses, the impact will be even greater.

"If a corporation falls, the impact will be greater. But in fact now it is the lower sector that is being helped. We don't have a problem with aid for them, it must be helped, but the big ones must also be helped," he said.

According to Roy, the government also provides assistance to factories, one of which is the food and beverage sector. However, he assessed that the assistance would not have any impact because the downstream sector was not guarded.

"The upstream food and beverage manufacturing sector is always subsidized by the government. What does it mean if the downstream sector is not maintained, there is no condition given so that it can continue to operate. This is nothing. The upstream sector is assisted by the downstream sector, and the product is eaten alone by the upstream sector? which sells to downstream consumers," he explained.

Roy said the government should also pay attention to corporations, especially the self-service sector. Because, if left to struggle alone, corporations can go bankrupt and close. Investors can also leave.

"If large corporations are not helped when they go bankrupt, close and go bankrupt, investors leave," he said.

1,500 retail closed during the pandemic

Roy said the COVID-19 pandemic had a heavy impact on the retail world. From 2020 to June 2021 there are 1 to 2 shops closed daily with a total of around 1,500 others who have flown the white flag.

"The indicator data for 2020 is that five to six supermarkets must close. Then, in 2021, one to two shops will close every day," he said.

According to Roy, the number of retail stores that were closed was due to lost turnover because they were unable to balance operating costs with revenue. The policy of limiting community activities until the pandemic that is still not under control has caused many retail stores to go bankrupt.

Avoid layoffs, retail entrepreneurs ask the government to allow shopping centers to operate

Roy said retailers should be allowed to open to avoid layoffs. Because, at this time retail entrepreneurs bear a heavy burden. The situation is made worse by the government's not allowing shopping centers to operate.

"Do we need massive layoffs? Layoffs will affect purchasing power. People who are laid off won't shop anymore. We'll avoid that. That's the last step, and we won't do it arbitrarily because the rules and system apply, and humanely applies," he said.

Therefore, Roy asked the government to be fair in providing assistance. Just like small traders, such as traders in traditional markets, corporations have also been affected by the COVID-19 pandemic. Even the current condition is on the verge of bankruptcy.

"We are left alone because we are seen by corporations, not individuals like traders in the market. They are more important because of the people. Are we not the people? In fact, it is too big to fall, there is a bigger multiplier effect," said Roy.