Sales of Indonesian SMEs Plunge by As Much As 60pct during Coronavirus Pandemic

JAKARTA, KOMPAS.com – Indonesian SMEs have reported sales falling by as much as 60 percent as a result of the coronavirus pandemic.

Since Indonesia first announced its first Covid-19 cases that would later spur lockdowns across parts of the country, Indonesian SMEs have faced a tough time weathering out the economic storm.

Indonesia’s Coordinating Ministry of Economic Affairs admitted that Indonesian SMEs are one of the groups hard hit in the coronavirus pandemic.

Read also: More Indonesian SMEs Poised to Gain Access to Social Assistance Programs

The ministry has received reports of plunging sales across the board for the country’s small businesses.

News of Indonesian SMEs’ downward trend in sales was made known from a report by the Business Development Services Indonesia Association.

The association conducted a survey among 6,000 Indonesian SMEs across the country between April and May 2020.

“The government realizes that Indonesian SMEs are truly one the worst affected by the Covid-19 virus,” said Iskandar Simorangkir, Deputy Minister for Macroeconomic and Financial Coordination at the Coordinating Ministry for Economic Affairs.

The survey results indicated that 36.7 percent of Indonesian SMEs have made zero sales since the pandemic.

Read also: Indonesian SMEs Record 14pct Growth in Exports

Around 26.6 percent of Indonesian SMEs have reported a drop in sales by 60 percent while another 15 percent have experienced sales falling 31 to 60 percent.

An additional 14.2 percent of Indonesia’s small businesses reported a sales drop between 10 and 30 percent although 4.5 percent of the businesses experienced stable sales performance amid the pandemic.

A mere 3.6 percent of Indonesian SMEs recorded an uptick in sales performance.

Iskandar acknowledged that although some Indonesian SMEs experienced sales growth, the figure does not compare to the number of businesses experiencing a slump in sales.

Read also: Luhut Panjaitan: Indonesian SMEs are the Backbone of National Economy