The rapid spread of the Covid-19 virus has paralyzed the Indonesian economy and weakened consumer spending.
The economic impact of the coronavirus pandemic has been disastrous and industries across all sectors have felt the brunt of it.
However, innovation can stimulate efficient production processes.
Innovation provides companies the opportunity to present new products that are better for the environment and consumers.
The availability of capital and organizational transformation is integral to driving innovation.
Yet these factors are even more difficult to obtain during such uncertain economic times.
Support from the government through effective policies are necessary to address these challenges.
Executive Director of the Indonesian Employers Association (APINDO), Danang Girindrawardana, said that because of the coronavirus pandemic, many large-scale companies have had to close.
Pressure from the economic crisis coupled with an inability to innovate led such companies to shut down.
“Because Indonesia is in the process of recovering from the coronavirus pandemic, industries are under even greater pressure to stay afloat so as to prevent the national economy from worsening,” said Danang.
Similar opinions were shared by Head of the Indonesian Ministry of Finance’s Fiscal Policy Agency Febrio Kacaribu.