Extended PPKM Makes Shopping Centers Unable To Survive, Choose To Lay Employees To Layoffs

Illustration. (Photo: Unsplash)

JAKARTA - The Indonesian Shopping Center Management Association (APPBI) admits that it can no longer survive in the midst of the ongoing extension of level 4 and 3 restrictions on community activities (PPKM). In fact, some employers have laid off employees and terminated employment or layoffs.

APPBI General Chair Alphonzus Widjaja said the re-enactment of PPKM based on level was increasingly worrying. This is because prolonged business closures will result in mass layoffs.

Furthermore, said Alphonzus, there were several stages that were carried out by shopping center entrepreneurs before finally reaching the layoff stage. First, lay off employees with wages still paid in full.

Second, lay off employees with wages paid in part. Third, do layoffs.

"Now they have entered stage 2 and some have entered stage 3," he said when contacted by VOI, Tuesday, August 3.

Not only laying off employees, said Alphonzus, the impact of the PPKM being extended is the permanent closure of businesses.

"And start a permanent closure of the tenants' businesses," he said.

As is known, President Joko Widodo (Jokowi) has decided to extend the implementation of Level 4 Community Activity Restrictions (PPKM) from August 3 to August 9, 2021. The extension applies to certain districts or cities.

To reduce the burden on the community, the government continues to encourage acceleration in social assistance for the community. Starting from the Family Hope Program (PKH), cash social assistance (BST) and village cash assistance (BLT Desa). There is also assistance for micro and small businesses, street vendors and food stalls, as well as salary subsidies.