The Closure Of The Tanah Abang Market Due To COVID-19 And The Paralysis Of The MSME Economy

Tanah Abang Market. (Angga Nugraha / VOI)

JAKARTA - Perumda Pasar Jaya has temporarily closed all markets in the Tanah Abang area which are managed by Pasar Jaya. This closure was carried out as an effort to prevent and spread the corona virus or COVID-19. Then what is the impact from the economic side?

President Director of Perumda Pasar Jaya Arief Nasrudin said the Tanah Abang Market area approaches the holy month of Ramadan, the number of visitors is quite sharp. These visitors are not only from Jakarta and its surroundings, but many buyers also come from outside the region to foreign countries.

Arief said, to avoid a surge in visitors, it was necessary to put restrictions so that the spread of COVID-19 could be prevented in the largest textile market in Southeast Asia.

This closure was carried out including Tanah Abang Market Block A, Tanah Abang Market Block B and Blok F Tanah Abang Market. Only Tanah Abang Market Blok G is still open. However, even then it is limited to traders who sell only types of foodstuffs.

"The closure will be carried out from March 27 to April 5, all trading activities in the market will be temporarily canceled, this is one of the steps to prevent and spread COVID-19. Except in Block G, we can only sell special foodstuffs," he said, through a statement. written received by VOI, in Jakarta, Friday, March 27.

Arief explained that Pasar Jaya management had communicated with traders beforehand regarding the temporary closure. Moreover, before the month of Ramadan is indeed a very important time for traders because their merchandise sales are quite a lot than on normal days.

"For this closure, of course, communication and outreach has been carried out to the traders first. We will convey a number of things for mutual understanding between the traders and also management," he said.

Sluggish stretching of MSMEs

Economist Paul Sutaryono said the impact of the temporary closure of the Tanah Abang Market would have an impact on the regional economy and national economic growth. This is because this market is the largest textile market in Southeast Asia where the target is not only domestic but also foreign.

"Automatically this will affect national economic growth and of course will suppress regional economic growth. But it is inevitable to prevent the spread of COVID-19 from becoming more widespread," he said, when contacted.

Meanwhile, the Chairman of the Indonesian MSME Association (Akumindo), Ikhsan Ingratubun said, speaking from a health perspective, the temporary closure of the Tanah Abang Market is the right thing. This is because the transmission of COVID-19 occurs because of direct contact.

However, Ikhsan said, from an economic standpoint, it was devastated, especially MSMEs. Moreover, since January and February, traders have experienced a decline in turnover due to lack of buyers.

"Employees are sent home, nobody buys, there is no more turnover. Dead, right? From a health perspective, it is okay, but the economy is in ruins," said Ikhsan.

Ikhsan said that currently the government must think about how to compensate MSME entrepreneurs at Tanah Abang Market who can no longer open their shops.

"I am grateful that the voice of the UMKM association was heard by Mr. Jokowi. Especially with regard to the banking and non-banking financial industry, providing relaxation for one year without paying installments and interest. Our request is also related to electricity, the cost that must be incurred every transaction per day. we have to pay, "he said.

Moreover, said Ikhsan, what haunts employers today is the payment of salaries for employees. This is because this temporary closure makes entrepreneurs unable to pay it.

"Including paying employee salaries, maybe this month we can still handle it. But next month? We can't. Because there is no turnover," he said.