Current affairs

To survive the economic downturn caused by the Corona pandemic【[The #BanggaBuatanIndonesia movement, proud of Indonesian products】



Corporate efforts to overcome the economic downturn caused by the Corona pandemic

There's been a lot of news about corporate failures and divestitures due to the Corona pandemic, but the one thing that has stuck with me is
On May 15, the Civil Rehabilitation Law was applied to Renown; on May 19, Thai Airways went bankrupt and became the first major government-affiliated airline to undergo reorganization proceedings; on June 18, restaurant chain Pepper Food Service sold its mainstay PepperLunch business; on June 29, Canadian circus troupe Cirque du Soleil underwent reorganization proceedings; and on June 30, the company's first-ever bankruptcy proceeding was completed. And the day before yesterday, July 8, Brooks Brothers, the oldest men's clothing brand used by U.S. presidents, filed for Chapter 11 bankruptcy protection (equivalent to Japan's Civil Rehabilitation Law).

The number of employees laid off PHK (Pemutusan Hubungan Kerja) in Indonesia by April is said to be 7 million, and although there has been no news of a major corporate collapse yet, on April 16 Toraveloka laid off 100 employees, or 10% of the total workforce, and on June 16 Grab (headquartered in Singapore) laid off 360 employees, or 5% of its total workforce, including its Indonesian office, and Gojek continued to lay off 430 employees, or 9% of its workforce, following the closure of its Golife business on June 23 (PHK), and other employee layoffs and downsizing in the wake of the Corona pandemic.

Gojek lays off 430 employees as GoLife business closes


We are also struggling to reduce fixed costs by suspending the renewal of contracts with engineers, reducing employee salaries, and bringing outsourced services in-house, but there are companies in the world that put their employees first and have used their wits to create new businesses to overcome the corona pandemic.

Great response to the coffee shop that saw a dramatic drop in sales in Corona.
1. Continue to keep shop and employees continue to work or close shop and stay home to be compensated 30%-50% of salary (no layoffs) options => all continue to work.
2. Start selling frozen food products ⇒ sales increase
3. Donate sembako to drivers when they buy online => users will automatically improve their image by contributing to society…

Speaking of February, there were no cases of corona infection in India and Indonesia, and I wondered if this was due to the fact that kunyit (turmeric), which is used in Indian curry and Indonesian cuisine, played a role of antibodies, and I was looking at China, Korea and Japan from a slightly superior perspective.
This comes at a time when the position of Japanese people living in Indonesia has taken a turn for the worse after the President himself announced on March 2 that the first confirmed positive case in Indonesia was apparently caused by contact with Japanese people in Malaysia.

Then in April, when the PSBB (Large Scale Social Restrictions) came into effect, sales dropped by 60% as in-store eating-in was no longer allowed, and not only this coffee shop, but many other restaurants were trying to survive with delivery, but
The idea of combining a discount promotion with social contributions by donating sembako (Sembilan Bahan Pokok = nine daily necessities: rice, sugar, oil and butter, beef and chicken, eggs, milk, corn, kerosene, and salt) to drivers is a great way for consumers to make donations to drivers I think it is a sophisticated marketing strategy that appeals to the social animal nature of human beings, that the individual cannot exist without society.

President Jokowi's #BanggaBuatanIndonesia movement (Proud of Indonesian products)

In the midst of the global recession caused by the Corona pandemic, President Jokowi announced on May 14 that
Recognizing and correcting the nation's weaknesses and seeing the Indonesian people's talent for producing creative and quality products as a strength, let's overcome the domestic economic crisis by prioritizing the purchase of creative domestic products, and for that purpose, let's start with the 2 million domestic small, medium and micro enterprises, Usaha Mikro Kecil (UMCM) dan Menengah) on digital platforms such as e-commerce, the #BanggaBuatanIndonesia movement aims to allow Indonesian products to have sales opportunities in a larger market.

President Jokowi is officially promoting #BanggaBuatanIndonesia, an initiative to increase the supply and demand of domestic value-added products by bringing offline micro-enterprises online, in order to make them proud of their domestic products, and to get through the coronas together, because exports are weak Homegrown product preference movement.…

The #BanggaBuatanIndonesia movement is supported by existing online marketplaces, mobile platforms and banks.
For example, BRI Bank provides low interest loans to SMEs, GrabKios allows you to open warungs (food stalls) all over the country online, GrabMart allows you to buy fresh fish from fishermen in Ambon, and GrabExpress allows you to deliver goods from poorly located small shops to homes in the city.
By bringing small offline businesses online, we are trying to expand sales opportunities and overcome the recession caused by the corona pandemic.

Originally, the winning pattern for national economic development might be to earn foreign currency through export promotion and strengthen domestic industry once the country's strength is strengthened, but
Indonesia's domestic consumption is increasing, but the ratio of imported consumer goods is high, and domestic assets are flowing out of the country, so it may be inevitable for the country to prioritize its own country by encouraging people to buy domestic value-added products to improve the circulation of money domestically, instead of draining the country's wealth by buying foreign products because exports are weak.

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