Current affairs

Impact of a new type of coronavirus at a Japanese company in Indonesia

The Status of Temporary Going back to Japan and Planned Re-Entry

Looking at the social networking sites and personal blogs of Indonesian expatriates, there are cases where, due to the spread of the new coronavirus, there are cases where only the family members of the expatriates return home temporarily, and cases where the expatriates themselves also return home temporarily, as well as cases where they remain in Indonesia, but after participating in today's webinar by JETRO, I was able to understand the current situation in general.

The details will be posted on JETRO's website, but 50% of all companies have temporarily returned their expatriate employees to Indonesia, and 60% of them plan to re-enter the country by September, and many companies cite "when the increase in the number of infected persons has subsided" as the most important criterion.

Surprisingly, not so many companies cited the "relaxation of Japanese travel restrictions" as an indicator, but we have not seen a significant number of companies cite the According to the infectious disease risk information released by the Ministry of Foreign Affairs, Indonesia is a "Level 3: Stop Traveling Please do so. The maximum alert level remains at "Travel advisory".

Manufacturing production and operations in the corona pandemic

Despite the shocking news of an 80% drop in year-over-year auto production and a 90% drop in sales in April, more than 50% of companies in the manufacturing industry as a whole, including the non-automotive sector, saw production fall to less than 50% of normal levels, and the trend seems to be more pronounced for larger companies that are closer to the average consumer.

Production at normal levels as of May

  • Less than 30 percent:36%
  • More than 30 percent and less than 50 percent:16%
  • More than 50% and less than 80%.:20%
  • About 80%.:12%
  • as usual:12%

With production volumes down, more than 40% of companies had less than 50% of operating hours, and most companies cited "withholding, decreasing or canceling orders from domestic and international customers" as the reason, and it was surprising that fewer companies cited "delays or stoppages in the delivery of products, parts and raw materials from overseas suppliers" as the reason.

Although a five-fold increase in the price of onions has become a problem for housewives, I think it can be said that the Covid-19 did not cause so many problems of production line stoppages due to supply chain stoppages of parts and materials, as was a problem during the SARS outbreak in 2002-2003.

As a response to the reduction in production and operations, most of the companies cited "inventory adjustment" and "restraint or improvement of operating rates" as their responses to the reduction in production and operations, while a small number of companies cited "investment in production management and operation management" and "investment in automation and manpower saving" as their IT investment.

In addition, nearly 80% of the companies have adopted telecommuting and more than 70% of the companies have not negotiated wage reductions with the labor union.

Manufacturing Performance in the Corona pandemic

Looking at the manufacturing industry, more than 45% of all sales declined by 50% or more, with larger companies experiencing a higher percentage of sales declines, but in the case of the non-manufacturing industry, the opposite is true for smaller companies.

Year-on-year change in sales of all Japanese companies (including non-manufacturing industries) after the implementation of the PSBB (April-June 2020)

  • More than 50% reduction:37%
  • Decrease of 20% to less than 50%:27%
  • Decrease of 1 percent to less than 20 percent:17%
  • No change.:12%

When asked how many months of average monthly sales the company's cash will be at the end of February 2020, 17% of the very best companies have been in business for more than 6 months, 18% of the best companies have been in business for more than 3 months but less than 6 months, 39% of the average companies have been in business for more than 1 month but less than 3 months, and 15% of the companies in difficult circumstances have been in business for less than 1 month.

In terms of the impact on future investment strategies, 69% of firms maintained the status quo, 12% were considering expansion, and only 15% were considering downsizing because of local demand and growth potential and the importance of the country as a profit center.


情報共有 1

The sharing of visible results leads to a common recognition of the problems, but if there are people who are troubled because the scarcity of information is diminished by the increasing sharing, the political power to increase the position by monopolizing useful information is at work.

インドネシアのスタバの店員にありがたい人生の教訓を教わった件 2

When you order your usual iced coffee at your regular Starbucks, a familiar clerk usually talks to you in a friendly and familiar way, like "You came at an unusual time today," or "Is your usual iced coffee okay today?

宗教によって異なる「死んだらどうなる」の考え方 3

Both Christianity and Islam are religions derived from Judaism and believe in the one and only God, Jesus Christ (God Himself) or Allah, respectively.

株価操作なんてインドネシア株では当たり前 4

Stock prices fluctuate with sell and buy orders, and if you get a lot of sell orders and a lot of buy orders, the other investors will follow suit with "me too" and the stock will go up.

心臓に毛が生えたインドネシア人のずうずうしい転職活動を応援してみた 5

Since many Indonesians can't maintain mental stability without revealing a secret story to someone else.

日系企業のインドネシアでの存在意義 6

If Japan's population continues to decline at the current rate, domestic demand will continue to shrink, and if this happens, it is inevitable that domestic companies that find it difficult to survive in the Japanese domestic market alone will look for ways to make a living in overseas markets.

チャンスはあるが勝てる分野が 7

After living in Indonesia, talking to people on my own, and gradually understanding the local situation, I realized that starting a business in Indonesia is surprisingly difficult. The reason for the difficulty is the high shipping costs and tariffs, the competition from local companies, and the high running costs of IMTA and DPKK.

インドネシアのシステムインテグレーション業界 8

The other day, I had the opportunity to exchange opinions with JETRO (Japan External Trade Organization) about IT investment by Indonesian SMEs, and they raised an important issue related to the existence value of system integrators, such as "How can we explain the cost benefits of system investment?

肉体と精神と心と魂 9

Speaking of "Body and Soul," it's the debut song of SPEED, a member of the LDP's House of Councillors, Eriko Imai, who was unofficially appointed as parliamentary secretary of the Cabinet Office following yesterday's cabinet reshuffle, and the name of a long-established Indonesian women's fashion brand.

ジャカルタのラーメン市場 10

I came to Indonesia for the first time in October 1997. I didn't understand Indonesian, my job was hard, the people around me were unreasonable, and there was a time when I wanted to go back to Japan for a while.

ブランド力、技術力、資金力の3要素 11

After the Jakarta riots of 1998, when the rupiah plummeted and domestic companies with foreign dollar-denominated debt were struggling to pay interest, I was looking for a new business in Indonesia that would allow me to earn foreign currency.

日本とインドネシアの間でのタイムマシン経営が通じなくなっている件 12

I think that Yoshinoya overcame the frame of Japanese food and became Indonesian soul food. I am happy to see the scene where Japanese food culture is accepted by Indonesian people.

不景気の歴史 13

Since I came to Indonesia, I have seen the economic recession several times, but because of the spread of the new coronavirus this time, the economy will definitely go into recession, and in a few years' time it may be called corona shock or corona recession.

日本のバブル経済崩壊後とインドネシアの通貨危機後 14

When I entered university in 1991, at the end of the bubble economy, land and stock prices were exploding, Mitsubishi Estate had bought the Rockefeller Center Building, a symbol of America, and the women of the one-length body-con (like the Bubbly Dance of Tomigaoka High School's dance club) were dancing at Juliana Tokyo in the waterfront bay area, waving their fans.

内需と外需の自国経済に及ぼす影響 15

The situation in Japan is that even if public works investment is made, the money stays in the savings of companies and individuals, and domestic consumption does not increase, while the situation in Indonesia is that even if domestic consumption increases, the ratio of imported consumer materials is high, and domestic assets are flowing out to foreign countries.

2019年の総選挙を前にインドネシア政治史のおさらい 16

As the campaign (Kampanye) for next year's presidential election (Pemilu Pilpres Pileg Indonesia 2019) is lifted, it has been decided that the order in which the ballot papers will be printed will be No. 1 for the incumbent President Jokowi and Vice President Mahuru candidate pair and No. 2 for President Prabowo and Vice President Sandiagauno candidate pair.

インドネシアの国土と風土が生み出す産地特有のコーヒー 17

Located in the coffee belt between the Tropic of Cancer and the Tropic of Cancer, Indonesia is a country suitable for coffee cultivation, and during the 300 years of Dutch colonial rule that followed the advance of the East India Company in 1602, Arabica coffee was brought to the country and cultivation began in the plateau region with a favorable climate.

-Current affairs