Business during COVID pandemic is not promising until today. At the first rolling of the vaccine, the numbers of positive patients show a promising future. The data shows that more patients recover from the disease as the number of deaths decreases. Soon after, the business world starts to feel a slight breeze as people begin to slowly return to normalcy. However, post the national holiday in May, the number skyrockets and the country is once again in an emergency state.
In a day, the number of positive patients passes through 7500. Citizens of Jakarta once again panic as the government is unable to distribute the vaccines fast enough. The implication of this mismanagement brings a negative impact to the business world as well. Spending in the economy decreases as the citizen prefers to save due to the uncertainties.
Business During COVID Pandemic in Indonesia
In terms of local business activities, most of the businesses suffer extensive damage from the pandemic. Large companies that previously thrive is now experiencing bankruptcy one by one. For a while, the government prohibits trading activities. Importing and exporting goods is no longer an easy feat as the world slowly closes its borders.
Nonetheless, there is a time when the COVID-19 cases were not as bad. Around the month of April, the Indonesian economy was improving. Businesses were starting to recover as the number of cases slows down. Entrepreneurs are starting to grab on opportunities, using affordable means like a virtual office or private office as their business platform. The wheels of demand and supply begin to turn.
Soon, foreign investors reappear in the business scene. Jakarta, one of the world’s densest cities is a place of opportunities. These investors know, and so they observe and hunt for lucrative projects that could turn into large profits. Foreign investors aim for popular projects like mining, digital ads, and construction. They realise that in Indonesia, the business during COVID Pandemic does not succumb indefinitely.
The country is in the middle of going through rapid development. Therefore, despite the pandemic acting as a cork on a bottle, when the cork lifts, opportunity bursts. However, the positive growth does not stay for long. With the increase of COVID patients, the cork is once again stopping businesses to run.
Two Sides of the Same Coin
Nonetheless, as the popular term coins, there are always two sides to the same coin. In this case, the same coin refers to the situation of business during COVID Pandemic. The two sides are businesses that thrive and suffers. In certain industries, businesses earn a lot of profit from the spread of the disease. For instance, medicine that sells vitamin, medicinal drugs, as well as medical equipment and sanitary products.
This side of the coin also hosts businesses that work in the essential industry, such as energy. Despite the lack of spending in the microeconomy, the usage of energy does not decrease. The same goes with entertainment and internet company. With more people working from home, more subscriptions for internet plans as well as games increases.
Furthermore, industries like packaging products as well as deliveries also experience an increase in profit. Instead of physically visiting the mall to dine in or shop, people shifts to food deliveries and online shopping. The increase in deliveries correlates to the increase in packaging demand. The rise of demand gives the company a substantial increase in profit.
Opportunities for Business During COVID Pandemic
In relation to the profitable side of the business world, opportunities also arise. This can be easily seen from the rise of home industries. Many people who are working from home has more free time on hand. They use this free time to learn other crafts like baking, cooking, and even digital painting. Opportunists who have talent in their newfound skill set will then capitalize it through online means.
These small home industries, despite at a small scale, brings a positive impact to the local economy. They do it through creating money circulation and creating demand for raw materials. For foreign investors looking to jump into the wagon, investing in raw material industries is a good choice.
Another potential opportunity for foreign investors is the fact that the government is supporting foreign investments. Within the Omnibus Law that was recently introduced, there are clauses that provide incentives for foreign companies. The incentives come in the form of taxes, labour wages, as well as a permit application.
To establish a PT PMA or foreign company in Indonesia, feel free to contact MESO through our Live Chat on our website or send us an e-mail. For fast response, we are also reachable through our Whatsapp number +62812-1315-4819.