Exclusive, Ketum Hippindo Budihardjo Iduansjah, Food Sector Grows, Fashion Stumbles

The good news about Indonesia's economic growth in the second quarter of 2022 of 5.44 percent was welcomed by various parties with optimism. Including the General Chairperson of Hippindo (Indonesian Shopping Center Retailers and Tenants Association) Budihardjo Iduansjah. However, according to him, not all sectors in the retail sphere are growing. The food and beverage sector has indeed increased, while the fashion sector is still stumbling.

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The COVID-19 pandemic has affected everyone. Rules regarding social distancing, staying at home and other restrictions have made shopping centers deserted. The current situation, said Budihardjo Iduansjah, has softened, and the restrictions are slowly starting to be relaxed. This is partly because the vaccination coverage is evenly distributed and the program is still being implemented.

"I see people are not too afraid to visit shopping centers. Now we are holding an event in Sarinah, and a lot of people come. The fear of contracting COVID-19 has decreased. The important thing is that people have been vaccinated 3 times (one of them is a booster) and in malls or shopping centers also apply prokes. Massive vaccinations carried out by the government so far have had many benefits," he said.

Eid is a very good momentum, because the graph of visits and turnover of retail entrepreneurs continues to climb, especially those who are engaged in the food and beverage sector or restaurants and cafes. "This is a good development, we must respond positively. We, from the retail sector, noted that post-Eid growth was very good. The sectors that have drastically increased are F&B (food and baverage), restaurants, restaurants, cafes, etc. What has not recovered is the fashion sector. Indeed, this condition has not recovered as it was in 2019 ago," he said.

The reason is because fashion has not become a priority, in contrast to eating and drinking that is consumed every day. Especially after the children enter school, the main priority turns to education. August is actually a time for cooling down and saving money. At this moment, Hippindo held the Indonesia Discount Shopping Day program or Indonesia Great Sale to welcome the 77th Indonesian Independence Day.

He hopes that through this moment the fashion sector, which is still struggling, can improve and catch up with the food and beverage sector, which is experiencing encouraging growth. However, because this event is held by an organization, Budi hopes that the government can hold a similar event that is bigger and involves many parties.

Hippindo which was founded on June 8, 2016 is a form of concern for advancing the business of all related parties in the increasingly dynamic retail world, especially business actors both micro and large scale who have outlets or rent in shopping centers. Now there are more than 320 companies, 800 brands and 80,000 outlets that join Hippindo and spread throughout Indonesia.

With this potential, according to Budihardjo Iduansjah, they are ready to support the government in carrying out pro-people programs. As recently initiated by the Ministry of Cooperatives and Small and Medium Enterprises, the distribution of red edible oil is cheaper than ordinary (yellow) cooking oil. “We have actually bought from a large cooking oil factory. If there are goods with low prices and good quality, why not. Our members consisting of supermarkets, minimarkets, hypermarkets, restaurants, cafes and others are also interested," he told Iqbal Irsyad, Edy Suherli, Savic Rabos and Rifai from VOI who met him at the Sarinah Shopping Center, on Jalan MH. Thamrin, Central Jakarta, not too long ago. Here is the full excerpt.

As a retail entrepreneur, how do you respond to the release from BPS regarding Indonesia's economic growth in the second quarter of 2022 of 5.44 percent, while the inflation rate is 4.94 percent?

This is a good development, we must respond positively. We, from the retail sector, noted that post-Eid growth was very good. The sectors that have drastically increased are F&B (food and baverage), restaurants, restaurants, cafes, etc. What has not recovered is the fashion sector. Indeed, this condition has not recovered as it was in 2019. This may be because people still have psychological burdens due to COVID-19. After the situation has slightly sloped, there is now a new variant of Omicron.

So the consumption sector has had a very good effect. The consumer confidence index is quite high. They dare to buy things. If people have the courage to buy goods, there will be an economic turnaround.

I estimate they are not only single income but more than one. So someone because of work from home (WFH) can work for several companies. This is what we saw. So there are people who only want to accept work on a WFH basis, now they can send their work to several places of work.

Currently the situation is sloping, are there still many who limit themselves to coming to shopping centers, how does this situation affect Hippindo members?

I see people are not too afraid to visit shopping centers. Now we have an event in Sarinah, and a lot of people come. The fear of contracting COVID-19 has decreased. The important thing is that people have been vaccinated 3 times (one of them is a booster) and in malls or shopping centers also apply prokes. Massive vaccinations carried out by the government so far have had many benefits. This secures the community as well, when someone has a cough and a cold, it usually takes two days to recover. Hopefully the pandemic that occurs gradually becomes endemic.

Researchers from KSP said the sectors that boosted economic growth in the second quarter were the processing industry, namely textiles and apparel, as well as food and beverages. How do you observe this, what is the situation like when it comes to retailers?

For the textile sector itself, the government is fast with its safeguard program. The Minister of Trade has taken action by banning used textile products (used clothes) from entering. Those that have entered are finally burned. This has a positive impact. They do not pay taxes and do not make a profit for this nation. Meanwhile, our members from Hippindo are obedient in paying import taxes and other taxes. We hope that those who are obedient in paying taxes are secured and those who do not pay taxes can escape. So there must be strict action for those who violate it. That's the commitment put forward by the Minister of Trade.

The food sector has been blessed despite the pandemic, because sales through the Gofood, Grabfood, and other similar applications are mushrooming, increasing the turnover of food traders and producers. With the ease of ordering food, many cloud kitchens have appeared in various regions. After almost two years of being banned from gathering and hanging out, the euphoria of hanging out while eating and drinking in malls and other places has resurfaced. Just like M-Block, PIK in Jakarta is always crowded.

Hippindo held an annual retail discount event, he said, to boost economic growth. What is your estimate of how much impact an event like this will have on our economic growth?

We have an event called Indonesia Discount Shopping Day or Indonesia Great Sale for the Indonesian Independence Day. This is our sixth year doing it. For the 2019 event in August, data from Bank Indonesia at the time of this event rose by 3 percent. This means that there is an increase in the consumption sector. Usually August is quiet, because after going back to school in July, people usually save money. At that time we launched this Great Sale program, with a very good discount. In 2019, sales in the fashion sector rose 80 percent. Meanwhile, the restaurant only increased by 10 percent. The discount is effective for products such as shoes, clothes and other accessories.

For the Indonesia Discount Shopping Day program, which city is the largest volume?

Until now, the largest sales data is still controlled by cities on the island of Java. The turnover of our members is more than 60 percent in Java plus Bali. Sumatra, Kalimantan, Sulawesi, NTT, NTB, Maluku and Papua the rest. Only for Lebaran usually the crowded malls in areas such as Semarang, Jogja, Pekalongan, Malang, and other cities. It's because people go home, in their home areas need shopping too, right.

Does Hippindo have a partnership with MSMEs?

Yes, it is one of our work programs. Not long ago we had an MoU with palm oil cooperatives witnessed by the Minister of Cooperatives and Small and Medium Enterprises Mr. Teten Masduki and the Minister of SOEs Mr. Erick Thohir. Previously, there was also a program with Jakpreneur, assisted by the DKI Jakarta Regional Government. Then cooperation with Sibakul (Yogyakarta) and other areas such as Central Java, East Java, and Banten. We help SMEs to digitize. We also help MSMEs to enter and market their products to supermarkets, hotels and restaurants of Hippindo members.

In your opinion, how to maintain the already good economic growth in the second quarter in order to survive or be better in the third and fourth quarters of 2022?

Right now, the momentum for our economic growth is good. In the second quarter, the figure was 5.44 percent. After Lebaran the trend continues to rise. People are less afraid of COVID-19. It started to rise at the end of the second quarter. Now August and beyond is expected to be driven by that good effect. We hope that there will be something even bigger than the Indonesian Discount Shopping Day that is created by associations such as Hippindo. This is where the government's role is awaited to hold a much bigger event. All levels are mobilized, from malls, hotels, manufacturers and marketplaces to join in big events that offer attractive discounts to the public. I'm sure this will interest people.

What can sustain us is the consumption sector. Don't worry about the situation, even if it's difficult. The important thing is that the products are produced domestically and marketed domestically. So the circulation of money goes there and there and it can revive our economy. Remember that our population is more than 270 million, this is a very large market and must be optimized.

Technological advances accelerate change, including in marketing products online, how will it affect Hippindo members?

We are learning from the situation, including through the ongoing Indonesia Retail Summit 2022 event in Sarinah. This is a combination of various events such as expo (exhibition) conference, and awarding. All parties can take advantage of this moment for networking. Between the government and the government and the government and the private sector. The issue of digital applications was also discussed at this event. There is one digital application that has just been introduced. How consumers can order food directly from the kitchen, without going through intermediaries like so far. I also still have to learn new technologies that are used for various purposes such as marketing and commerce. So there are solutions to various problems that arise.

Behind this pandemic, there is a blessing, apparently, our members who sell laptops have a sharp increase in sales, because people need digitization. The same thing happened to the sale of mobile phones, during this pandemic it also increased sharply.

Minimarkets are also increasing, supermarkets are still surviving, what is distraught is hypermarkets. The rent is expensive, the shop is big, there are few who come. The mall is also in the future changing to be smaller and slimmer. For example, Sarinah is small, but there are many people asking for forgiveness, after they changed and presented a new, fresher concept.

What lessons can be learned during this pandemic?

So during the pandemic, for about two years, retail entrepreneurs have learned a lot. We have to reduce employees to save cost, then technology is improved. There are some that have good growth during the pandemic, such as; Kopi Kenangan, JCO Donut, and many more are growing. Kopi Kenangan will instead open a branch in Malaysia. This is a very exciting development.

That's what works and the body is fast during the pandemic, is there anyone who is heavily affected by the pandemic?

The ones affected are the fashion sector and department stores. Due to the pandemic, people are spending less on clothes, shoes and other fashion products. In contrast to the food sector which is relatively safe.

How is the collaboration between Hippindo and the Ministry of Cooperatives and Small and Medium Enterprises in distributing red edible oil to the community?

This red edible oil is a government program. This is factory production but not on a large scale. We have actually bought from a large cooking oil factory. If there are goods with low prices and good quality, why not. Our members consisting of supermarkets, minimarkets, hypermarkets, restaurants, cafes and others are also interested. And this usually has a vendor. We, Hippindo, have given input to red edible oil producers to package their products with modern retail standards. Good packaging, there are QRcodes, Barcodes, and others. This is still in process, hopefully in the near future around October this can be completed.

But this must really be socialized properly so that consumers are not surprised. So far the cooking oil was yellow, now it's red. The important thing is that the goods are good and safe, there is a certificate from BPOM. Then we will sell it through our members throughout Indonesia.

It is said that red edible oil is cheaper, because the production cost is not as big as yellow cooking oil, what is the approximate price per liter?

As for the price, frankly, I don't know yet, later the manufacturer will calculate it and reach the consumer at what price. Hopefully it can be cheaper and this can help the community. We from Hippindo are ready to support this program. If the total production is around 10 tons, it can be absorbed by our members.

What is your advice to the public to support the economic recovery after the COVID-19 Pandemic?

The key is that we all have to produce local goods and these goods are also absorbed by local consumers. All countries are now in difficult conditions. We must support government policies that promote local production. Our task is to buy local goods, 270 million is not a small amount. If everyone cares and wants to buy local goods, I'm sure we will all be safe. Imports of food are not allowed, as much as possible reduced to save the state's division. If it can be planted and produced domestically, that must be done. But the import and export ban policy must be selective and effective.

How quickly do you think our economy will recover, there will be elections in 2024 soon?

Elections are like a double-edged sword. The money budgeted for the election returns to retail as well. There is the manufacture of t-shirts, banners, accessories and so on. With this condition, our economy is spinning because there is a lot of money in circulation. What is feared is the socio-political impact and chaos associated with campaigns and other political activities. If there are demonstrations or riots, the mall does not dare to open, it ends up losing money. What the government has to control is security.

Society and politicians must also mature in politics. In a contest there are winners and losers. If you have to accept, after that it's done. Get ready again for the next election. If you make noise and riot because you lose, it will affect the economy.

So you are optimistic for economic growth in the third and fourth quarters of 2022, right?

The important thing is safe and stable. With great market power we are optimistic. We can be a strong country for the Southeast Asia region. Countries like Malaysia, Singapore, and others can depend on Indonesia. Security matters must be guaranteed by the government and yet we all must also support so that the situation is safe. In social media, you must also be wise, don't burn easily and spread hoax content.

Health is the most valuable treasure, because it must be guarded and maintained. Even though he is busy, Ketum Hippindo Budihardjo Iduansjah has his own tips to keep his health in top shape. Exercise, regulate diet and adequate rest. How did he do it?

“To be honest, I really don't have enough time to exercise, it's getting late from work. That's why I optimize the weekend to exercise. Swimming is my choice to move my body to maintain health,” said Budi.

In one swimming session, he spent an hour swimming in an Olympic-sized pool (50 meters long). "But not full swimming for an hour, there is a break and interspersed with snacks and drinks," he continued.

In addition to sports in general, Budi also makes driving a vehicle a form of exercise as well. The reason is that when driving, the body and concentration are mobilized to bring the vehicle to its destination safely. “When I feel I don't need a driver, I drive myself. Because driving trains our bodies to move," he said.

He also takes a traditional red fruit supplement from Papua. “I was told by a friend that the ingredients from the red Papuan fruit were said to be good for health and vitality. That I drink every morning a tablespoon," he continued.

In addition to exercise that is no less important is to regulate diet. Not all food must be eaten and not all drinks must be drunk. “I have started to reduce my intake of carbohydrates and foods or drinks that are high in sugar. It's hard, but it must be done to maintain health," he said.

Because carbohydrates are reduced, Budihardjo Iduansjah increases the amount of protein, fruit and vegetable intake in his food portions. "For fruit, I am not picky, only available and easy to find," he continued.

Consumption of red meat which is high in fat has also been reduced in recent years. Protein intake is obtained from white meat such as chicken or fish,” said Budi, who prefers Asian food to Western food.

But there are times when he can't move when he meets a relative who invites him to dinner after a series of intense meetings. "If that's the case, what else can you do, eat but stay in control. Because I have to keep my body weight at a reasonable rate. Now my scale ranges from 70kg to 72kg. My target is 68kg or 69kg," he said.

No less important than maintaining food intake and exercise is adequate rest. "This is important, if you don't have enough rest it will affect your performance the next day. I try to get enough sleep, don't stay up late unless there is something urgent," he said.

Due to time constraints, we strive for traveling together with family. It's also a trick to make up for the lack of time with family. “When I have a business trip, I take my family with me. After the main event, we continue with tours around the destination city," said the man who loves Bali as a tourist destination.

Like a few months ago when there was a business trip to Semarang, he decided to bring his family by driving his own car. "Now it's relatively easy to access Semarang after connecting the toll road from Jakarta. After I finished our business we hunted for culinary in the city of Semarang. If it's so exciting, then," he continued, mentioning cities from Cirebon to Surabaya that he had visited by driving himself.

For foreign countries, Budi prefers to go to Asian countries such as Japan, Hong Kong, Thailand, Malaysia, Singapore, etc. “Since I was young, my family has sent me to do business trips to Asian countries. So until now it's on. Moreover, I have friends in those countries,” said Budi, who prefers to take public transportation when visiting countries such as Japan, Hong Kong and Malaysia.

Before leaving he will contact his friend in the destination country. When he had a business meeting. His wife and children went out with their business relations wife. After a new business meeting, he and his family traveled together to a tourist destination there. "Sometimes if we don't have enough time, we just extend it for a day or two," he said. "With a pattern like this I can get many benefits, business roads and also strengthen family relations," he added.

There is another lesson that can be learned when Budihardjo Iduansjah travels abroad, about how the countries he visits service tourists with complete tourist information and discount info at the right shopping centers. “Their country really prepares everything so that tourists feel at home. This is still not optimal in our country. So tourists are shopping and spend money," he said while suggesting that all parties should provide the same support so that the tourism sector can develop and improve the economy.

“So the consumption sector has had a very good effect. The consumer confidence index is quite high. They dare to buy things. If people have the courage to buy goods, there will be an economic turnaround.”