DKI Economy Losing 60 Percent During The COVID-19 Outbreak

Illustration (Angga Nugraha / VOI)

JAKARTA - The DKI Chamber of Commerce and Industry (Kadin) estimates that economic losses in Jakarta during the handling of the corona virus or COVID-19 outbreak will reach 60 percent.

This is based on the minimal turnover of transactions, the closure of a number of shops and shopping centers, as well as the work from home (WFH) activities that are being carried out by a number of companies.

"The reduction has been 60 percent. We are currently working only those who provide for the needs of the community. The others are in lock condition. We are very concerned about, especially tourism such as hotels and restaurants which have a huge impact," said DKI Kadin General Chairman Diana Dewi at the City Hall of DKI, Central Jakarta, Friday, March 27.

Jakarta Kadin Chairperson Diana Dewi (Photo: DKI Pemprov Public Relations)

Even so, Dewi asked entrepreneurs whose businesses stagnated during the corona virus outbreak not to be discouraged. Because, he saw that the government had provided sufficient stimulus to MSMEs.

"But, my suggestion is that all the stimulus provided by the government must be fair, because there are many companies, not one kind of field, it is heterogeneous in nature. Then secondly, I hope that the stimulus given is also in accordance with the interests of all friends," he explained. Diana.

Meanwhile, one of the sluggish economic activities in Jakarta occurred in the Tanah Abang area which is managed by PD Pasar Jaya. The Tanah Abang area was closed as an effort to prevent and spread the corona virus or COVID-19.

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.

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.

One corner in the Tanah Abang area where there are no buyers after the COVID-19 pandemic in Jakarta (Angga Nugraha / VOI)

Meanwhile, Chairman of the Indonesian UMKM 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.

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.