As A Result Of COVID-19, Zomato Closes Its Offices In Indonesia

Screenshot of Zomato Indonesia (Aditya / VOI)

JAKARTA - Application for restaurant and restaurant recommendations, Zomato is reportedly going to stop its operations in Indonesia. Even so, the operating system of this culinary aggregator application will still run normally.

According to the DailySocial report, the closure of operations in Indonesia will have an impact on local employees who will be affected by layoffs (PHK). Then, Zomato Pro or Zomato Gold premium services will also be stopped.

"We decided to stop local activities in Indonesia. We are grateful for all the love we get from our users, the restaurant community and all partners. We are solidifying our market strategy for a long-term vision," said Zomato in their official statement, Wednesday, 21 October.

Later, all operational activities and the Zomato application system will be managed remotely from its head office in India. Apart from Indonesia, Zomato has also closed their local businesses in the Philippines.

This means that there will no longer be local teams working to curate or search for new restaurant and restaurant data. Operations in the two countries will also be carried out remotely from India.

Hello foodie! Pro refunds / refunds will be made in 15-30 working days. You will receive your membership funds back as stated in the email / application through the account (debit / credit) that you used to buy membership gold / pro. (cont)

- zomato Indonesia (@ZomatoID) October 18, 2020

Zomato will also provide refunds for Zomato Pro users, which are calculated as pro-rated, including extensions during the COVID-19 period. Even so, the application can still be used.

"You can still use Zomato to search and find your favorite restaurants to eat in Indonesia," said Zomato.

Zomato has been present in Indonesia since 2013. Their services are often used to provide detailed recommendations for places to eat or restaurants regarding prices and menus offered.

Based on the Tech Crunch report, this Indian start-up cut off 500 employees or 13 percent of its employees from a total of 4,000 employees globally. The remaining employees have also experienced pay cuts since September 2019.

Layoffs and closure of operational offices of Zomato were caused by the Covid-19 pandemic which also weakened the culinary industry. This is done to reduce the company's financial burden.