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.





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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

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インドネシアのシステムインテグレーション業界 8

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ジャカルタのラーメン市場 10

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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.

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不景気の歴史 13

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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

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-Current affairs

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