As A Result Of Flooding, The Decrease In Turnover Of Shops In Shopping Centers Is Estimated At 50 Percent

Shopping center illustration. (Irfan Meidianto / VOI)

JAKARTA - The floods that hit the Jabodetabek area at the beginning of the year were also felt by entrepreneurs in retail shopping centers. The Indonesian Shopping Center Tenants Association (Hippindo) even said that the losses of its members reached 50 percent.

He also asked DKI Jakarta Governor Anies Baswedan to pay attention to the impact of flooding on Hippindo members. "Many members said turnover fell during the flood and they wanted to meet with the Governor of Jakarta to discuss the impact of flooding on our business," said Budihardjo Iduansjah, Chairman of Hippindo to VOI, Monday, January 13.

Budihardjo conveyed that Hippindo members consist of around 500 offline retail brands. The stores of Hippindo members are scattered in shopping centers / malls, shop houses, apartments, airports, stations, ports, rest areas, SPBH, offices and other commercial areas.

Budiharjo explained, due to the flood, several mall accesses were disrupted so that employees and customers could not enter the mall. “All the shops are quiet January 1–5. Maybe now it's starting to recover. But there are still malls that haven't opened yet, namely Cipinang Indah Mall, East Jakarta, and Taman Anggrek Mall, West Jakarta, "Budi explained.

Budiharjo added that due to the flood, many of the raw materials prepared for Hippindo members' outlets were damaged due to flooding and rot because the storage cabinets did not have electricity.

As a result of this material impact, Hippindo asked the DKI Provincial Government for support to review several policies. The reason is, according to him, if it is still implemented, it will increase the cost burden and will have a negative impact on the sales of Hippindo members.

"For example, policies such as billboards tax in our stores. We ask for a review. That is a technical policy that may need to be revised, "Budi added.

Hippindo stated that it is ready to collaborate and work together with the DKI Jakarta Provincial Government to increase economic growth in DKI Jakarta. This is because offline retail is a locomotive that pulls carriages consisting of SMEs, producers, suppliers, factories and distributors.

"If it is disturbed, it will affect the industry from downstream to upstream. So that it will disrupt economic growth in DKI Jakarta, "he concluded.

Hippindo has sent a letter to the governor regarding their business expenses throughout 2019, mainly due to local government policies. Previously, news emerged that Hippindo plans to sue the DKI Jakarta Provincial Government for the losses it inflicted on association members. However, Budiharjo denied this information.

He emphasized that the association does not plan to sue the provincial government as would the residents of Jakarta who were affected by the floods. Hippindo just wants to meet Anies.