Micro Businesses in Indonesia experience many negative impacts ever since the COVID-19 pandemic strikes hard on the country. The government sets partial lockdowns to get control over the virus spread. These partial lockdowns only allow the essential business to operate fully while others must operate with the minimum employee or stop their operations. With the pandemic dragging on, the Micro Businesses begins to die down.

Micro Businesses in Indonesia and their Struggles

Unfortunately for the country, Micro Businesses in Indonesia occupies the majority of business entities in the country. When the pandemic hits Indonesia, many businesses struggle to sustain the bleak economy. The bad economy has forced many entrepreneurs to close their companies, which increases the unemployment rate.

Furthermore, the population no longer engages in active buying and selling, which causes a stagnant economy. To give incentives for the people to spend, the government tries to disburse aid funds to Micro Businesses. The plan is not working as the covid-19 pandemic continues to ravage the country. Day by day, more businesses continue to close down as more people are left unemployed.

Furthermore, the government has also imposed a rule to stop export and import. While the government means well by this regulation, it affects microbusinesses badly. Companies that rely on trading their goods can no longer continue their activity. The businesses are forced to stop their operation since they cannot compete in the market. Furthermore, the buying market that was once a large pool is now a small pool with too many fishermen.

The Impact Towards the Economy

With the largest business proportion facing a direct hit, the country’s economy plunges further. As the Micro Businesses in Indonesia faces a rapid decline, larger businesses also face the threat of bankruptcy. Multinational companies begin to shut down their operations one by one. Small and medium companies, that managed to sustain their business for the first year of the pandemic begins to be shaken down.

Unlike microbusinesses, the government does not extend aid funds to those businesses. One by one they disappear and the number of unemployed increases even higher. The deaths of these companies result in an oversupply of human resources as jobs are declining, demands are much lower than supplies, and poverty level skyrockets. It is a nightmare for any economist.

To add salt to the injury, the Indonesian government does not have enough funds to support their local businesses. Unlike other neighbouring countries, to support the local economy, their government provides subsidies. The businesses that experience profit loss during the pandemic receives subsidies from the Government. These aids allow companies to run and the economy to sustain at a certain level.

Solution for Businesses in Indonesia

On the other hand, Indonesia is facing a larger socio-economic problem. The people have become restless from the ongoing pandemic and the lack of income. More people fall to starvation. The only way for everything to return to normal is if the country and its people can beat the virus. To do that, there is a huge need for cooperation between the government and its people. The government needs to handle medication, vaccines, and the health system correctly while the citizens must obey the rules and regulations.

If both parties manage to uphold their parts, Micro Businesses will be able to bloom again. That means a decrease in the unemployment rate and an increase in spending. This situation will be beneficial to the whole economy of the country.

Another effective solution for existing Micro Businesses is to use modern office solutions like MESO Serviced and Virtual Office. Entrepreneurs can either choose to rent a Virtual Office or a Serviced Office. Find out more about the products through our website. Alternatively, contact us on our Whatsapp number at +62812-1315-4189.

The kind of office that you need depends on the entrepreneur and the business. Some entrepreneur prefers to work mobile while some other don’t. Then again, it also depends if the nature of the company allows the entrepreneur to work remotely. For instance, if the entrepreneur works as a representative office, then a physical office is a must. On the other hand, if the entrepreneur is doing a digital marketing service, they only need an address to register their business.

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Choosing serviced office or virtual office may be one of the biggest considerations for entrepreneurs looking to acquire a business address. These two options are the modern solution for office rental as they are affordable and simple. Entrepreneurs get to enjoy a variety of office facilities without having to worry about office setup.

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Office in Jakarta is a popular demand amongst entrepreneurs, both local and foreign. In recent years, the amount of foreign investment in the country increases constantly. Therefore, the need for office is higher. The option for office locations also varies within the city. Some entrepreneurs prefer to work from Central Jakarta, while others prefer to work in the hub of West Jakarta.

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The best location to rent an office in Jakarta can generally be seen from the busy business areas of the city. When discussing business areas, it is natural to think about Central Business Districts. In Jakarta, one of the most popular CBD areas lies in the western part of the city. In the heart of the area is APL Tower, a premium grade A office building.

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Office for rent in Jakarta has a lot of options in the Capital City. Capital City is no stranger to foreign investments and has seen an increasing number of foreign businesses. A lot of foreign companies invest in industries like factories, refineries, and mining. They also invest in service industries. To operate in the country, these companies need to choose an office for rent or buy in Jakarta.

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Suitable office space in Jakarta is not an easy find. Especially in the past recent years, there is an increase in office providers. This office provider ranges from the most conventional shophouses and office unit to the more modern options like a private and virtual office. All of these alternatives are popular for entrepreneurs looking to find a place for their operations.

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The importance of private office to PT PMA is quite crucial. To run a business in Indonesia, entrepreneurs must register their company in a business address. For a foreign company, a private office is perhaps the best choice. Why so? Not only does an office suite provides a place for the employee and entrepreneur to work it also suffices as an office domicile.

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What does it mean to set up a Private Office?

To set up a private office is to rent an office suite that is exclusively meant for the company. The company renting a private office only needs to pay the monthly rental and deposit fee to use the office. Renting a private office also allows the company to gain access to other office facilities like lounge and meeting room.

Before getting an office, companies must be sure to find a reliable provider. Companies must look out for service quality, facilities, and flexibility. Not all pricy suite office means it’s the best choice. The same applies to cheap office suites. Cheap office suites will most likely compensate for the services and facility provided.

It is also worth remembering that applying a business address is quite complicated. At some providers like MESO, there are legal services that could assist in the matter. Therefore, it is very important to look for the right provider. Once the provider is set, the company can proceed to set up a private office with them.

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Entrepreneurs should start to consider using private office for their office operations. Around ten to fifteen years ago, the idea of renting a private unit is still common. This is because the development of technology and the internet is not yet as advanced as today. A company still needs to employ large numbers of employees to run its operations.

Today, with the growth of the internet and technology, efficiency is at the core of every company operations. Everything is simplified. For instance, instead of waiters delivering plates of sushi, restaurants invest in mini trains to deliver orders to the tables. Instead of hiring extra staffs to man the cashier, supermarkets invest in self-checkouts. With the same idea, instead of renting a shophouse or office unit, it is much more efficient and simpler to rent a private office.

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