PPKM Jawa-Bali Is Extended, Traders In Malls And Restaurants Are Increasingly Difficult To 'breathe' And Need 'oxygen'

Illustration. (Photo: Unsplash)

JAKARTA - The government has highlighted the high number of COVID-19 cases in areas that have imposed restrictions on community activities (PPKM). PPKM volume II will be extended from January 26 for the next two weeks. This policy will further depress retail entrepreneurs and shopping centers.

Currently, conditions for retailers and shopping centers are critical. The COVID-19 pandemic and restrictions on community activities have caused the occupancy or occupancy of shopping centers to plummet. So that it has an impact on the company's cash flow.

During PPKM volume I, the occupancy rate of malls fell 8 percent to 32 percent. Whereas before the PPKM was implemented, the level of visits to shopping centers or occupations was at 40 percent from the conditions during the transitional regulation. The decrease in the number of visitors was due to restrictions on the operating hours of the shopping center which only lasted 19.00 WIB.

Not to mention, the rules for dine-in or eating at a place are only allowed as much as 25 percent, plus there is a rule for 75 percent for work from home (WFH) and only 25 percent for work from office (WFO). This condition forces shopping centers and tenants to reduce labor.

The Association of Indonesian Shopping Center Retailers and Renters (Hippindo) Budihardjo Iduansjah said that in order to last longer, retail entrepreneurs must be able to maintain their cash flow to stay healthy. Therefore, retail needs government assistance.

Illustration. (Photo / Unsplash)

"The retailer's condition is already critical, like using a ventilator. You need oxygen to breathe. It is very difficult," he said, when contacted by VOI, in Jakarta, Friday, January 22.

The oxygen meant by Budi is fresh funding. He explained that these funds were used to pay employee salaries, pay rent to mall managers and pay installments to suppliers so that cash flow occurred.

"He needs financial assistance so that his heart beats. Because he (a retail entrepreneur) needs to pay off his debts. Now this is the number, the government has to inject. Abroad what is done, already knows. Suppliers cannot close and must open. Retail is a machine. "If the retail is stuck, the economy will not work," he said.

On the other hand, Budi said that the new rules in PPKM volume II where malls and restaurants are allowed to operate until 20.00 WIB, from the previous 19.00 WIB, at least, is quite helpful.

"At least, there is hope. The restaurant can open until 20.00 WIB, this will raise people's interest in coming to the mall. Because if the restaurant closes quickly, people will be lazy to go to the mall and have an impact on other stores in the mall," he said.

Even so, Budi regretted the 25 percent rule for restaurants to serve meals on the spot. According to Budi, this regulation still suppresses people's interest in coming to the mall.

"Until now, malls are not a cluster for the spread of COVID-19. We have implemented a very strict health protocol. The government should provide opportunities for entrepreneurs who have implemented health protocols to open longer," he said.

Budi said, he realized that currently active cases of COVID-19 in the country were indeed high. Because of that, the policy taken by the government must be appropriate in formula and cannot be beaten flat for.

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"For example, stomach ache and cancer are not the same as the cure. In this mall we apply a layered health protocol. Entering the mall is checked, want to enter the supermarket is also checked again, checked into fashion retail. Give us the opportunity to occupy 50 percent. That's just the policy formula. the right one, "he said

Illustration. (Photo: Unsplash)

Occupancy of only 25 percent, said Budi, did not rule out the possibility that employers would reduce their employees. However, here it is not pure layoffs but rather being sent home temporarily.

200 thousand workers were sent home

Chairman of the DPD Indonesian Shopping Center Management Association (APPBI) Ellen Hidayat, said the main problem for shopping centers is traffic. Due to various regulations limiting the activities of 15 percent of retail mall tenants, they have already conducted an early termination contract, or have not continued the lease.

Ellen said they are hesitant to continue investing in this time of the pandemic. During the nine months PSBB the mall owner also had to share with the tenants to free the rent.

Ellen Hidayat, said that the workforce involved in managing the malls registered with the association is 280 thousand workers with the potential for layoffs reaching 50 percent.

"When traffic is only allowed, 50 percent of the layoff potential reaches half of it. By closing it at 7, there will certainly be extras," he said at a press conference, Monday, January 18.

Meanwhile, based on data from Hippindo, there are 550,000 workers involved, from retail and supermarket tenants. Currently, 50 percent of the workforce has been sent home.

The number of employees because there is a double with supermarket retail is quite large, namely 1 million, but specifically for retail there are 550 thousand. The current assumption is that 50 percent are laid off or around 275 thousand workers.

Apindo asked for the relaxation of PPKM regulations

Chairman of the Indonesian Employers' Association (Apindo) Hariyadi Sukamdani admitted that he was resigned to the decisions taken by the government. This is because, even if one additional operating hour is added, it will not have a major impact on restaurant and mall businesses.

Chairman of Apindo, Hariyadi Sukamdani. (Mery Handayani / VOI)

Hariyadi explained, in malls and restaurants, the peak hours of visitors are day and night. During the day, between 11.00 and 14.00, while 18.00 to 20.00 at night. So that this rule is considered responsibility.

Previously, Apindo together with the Indonesian Shopping Center Retailers & Renters Association (Hippindo), the Association of Indonesian Shopping Center Managers (APPBI), the Indonesian Restaurant Hotel Association (PHRI) asked the government to enforce restrictions on community activities (PPKM) which will take effect from 11 to 25 January 2021 in Java Bali is not extended.

If it is extended, Hariyadi asks malls, retails, hotels and restaurants that have implemented health protocols to be allowed to continue operating until 21:00 with a maximum dine-in capacity of 50 percent.

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