Outlook for Indonesian Economy
In recent months, the fall of CSPI dan its stocks is resulting from the impact of COVID-19 on the Indonesian economy. With crises affecting the economy and national and global business, the key to success is to carry out immediate actions that have a long-term impact. The pandemic that has emerged since February 2020 gave companies a signal to embrace a new paradigm, where there is a need to maintain the right balance in pursuing public, environmental, and commercial service objectives. Due to this challenge, it is hard to maintaining business amid pandemic situations.
With the PSBB policy that has been in effect since April 2020, businesses from all sectors only allowed to operate at a very minimum level of operation. This situation forces companies to continue to carry out business operations nimbly and prioritize investments while staying focused on their workers’ safety. Due to this impact, we can see the effect on businesses eventually collapsed because they were unable to adapt quickly during this pandemic, but did not rule out the possibility for companies to continue operations with real opportunities.
Opportunities to Rising
The crisis period has taught businesses that there is no point in focusing on creating wealth through trade, when health, environmental, and social crisis can quickly push business to fall in a matter of weeks, like what we often witness during this pandemic. From this phenomenon, Jeremy Limman – CEO of Paper.id – said that the COVID-19 epidemic would impact society and the health community and businesses from various sectors, both large and small businesses.
Dea Surjadi, as Head of Indonesia of Golden Gate, said that although this crisis has not shown signs of ending, businesses can still look for opportunities through adapting to the new normal. The pandemic and the implementation of work from home has led to new habits and consumption patterns for the community, so businesses must adopt adaptations to make it keep ongoing or face extinct. This is why we decide to write this article where you can have some survival guide on maintaining business amid pandemic.
Effective Response for Business to Survive Pandemic
In an analysis conducted by Fandy Tjiptono, most companies responded to the COVID-19 pandemic by balancing trilogy within PEC (public service, environment, and commercial) goals. From the analysis, most companies use their respective expertise to pursue these three values simultaneously by utilizing what they have to overcome COVID-19. These included making masks, PPE, and others that became the country’s needs in this pandemic. Although this is new and is not an advantage for related companies, the response given is good enough to save the business.
Makko Group, for example, as a large company that well known in the Indonesian automotive industry, now manufactures masks, PPE (Personal Protective Equipment) clothes, disinfectants, and hand sanitizers. Although this is not something that the Makko Group often does, the company takes the opportunity to improve its business by pursuing the value trilogy. Seeing medical personnel who still lack PPE in handling corona patients, Christopher Sebastian – President Director of Makko Group – took this opportunity to help people in need, namely by producing PPE clothing and masks to meet domestic needs.
Not only domestic companies, well-known companies such as Prada, Armani, and PT. Pan Brothers also helped meet medical needs by producing PPE, hazmat, and masks. In addition to meeting domestic needs, the company is also ready to assist different needs and send hazmat and masks to the United States, Australia, and Europe. Seeing the adaptations made by these companies, the pandemic condition did not stop them from continuing to make profits because the main focus was no longer only on money, but also prioritizing the PEC trilogy which was equally important. They share one belief that, to maintaining business amid pandemic by helping others.
Revive by Sharing as Key Towards Economic Healing
The implementation of work from home that has been going on for approximately three months has forced businesses to utilize technology in its business processes further. Based on year-on-year growth, the significant source of Indonesia’s economic growth in the first quarter of 2020 was in the information and communication sector, which amounted to 0.53%. This growing evidence shows that the new-normal pandemic causes people to access work, entertainment, and education through information technology.
GO-JEK, as one of Indonesia’s foremost start-up companies engaged in information technology, is conducting business adaptation training amid a pandemic. GO-JEK Xcelerate is a program formed to support business acceleration from other start-ups in Indonesia. Even during the pandemic, GO-JEK did not stop sharing knowledge with other business people.
In this 4th GO-JEK Xcelerate, 11 Indonesian start-ups are trained to focus more on the direct-to-consumer business model. This was explained by Tarun Agarwal – Head of Groceries GO-JEK – that this pandemic’s dynamic situation will make the application of direct-to-consumer because users can now spend more time interacting online.
Not only given common knowledge, but GO-JEK also provides tips to minimize the failure of start-ups in the development of its products and services. For example, participants from GO-JEK Xcelerate are trained to apply the MVP Technique (minimum viable point), implement full-fledged features, growth hacking training, and others.
The adoption of the adaptation carried out by GO-JEK provides an example for business people not always to save themselves during a pandemic, but helping other businesses is also essential to do in difficult times. GO-JEK also teaches its participants to not only focus on the company’s profit but must find out what their customers need. Therefore, GO-JEK emphasizes the direct-to-consumer method to build communication through social media, and companies can listen to what their customers need.
This is why digitizing your business is really important because by doing so, not only you are able to harness your data to your benefits, but also one of key to be agile in maintaining business amid pandemic situation. Digitize your business is not same with just changing your tools, it need to start with the people, then your business process, then the tools.
What Can We Do To Survive Pandemic?
The COVID-19 pandemic moment allowed people in business to innovate on a large scale, even to destroy the existing business framework. Companies are forced to have new ways of thinking and business practices full of uncertainty as “business as usual” practices. For example, changes in the behavior of music concerts in Indonesia during the pandemic were carried out virtually to support self-distancing. Global Citizen raised funds to hold a virtual music concert titled One World: Together at Home, which featured the world’s top musicians, from the Rolling Stones to Billie Eilish.
Not only the world of music but also applies to the world of sports. This pandemic prevented several sports sectors from running, such as the gym, the Olympics, to Formula 1 races. So, the alternative taken was the application that provided class choices and sports sessions with virtual video features, so that people could exercise together from their respective homes.
The uncertainty that was the impact of COVID-19 caused several companies to experience a crisis and necessitated the development of a management plan. What can you do now as a businessman to respond and survive pandemic?
- Protect Your Workers
First and foremost, a company must protect its workers. Companies must respond quickly to the provision of protocols that can protect their employees because employees are the most critical asset in a company.
- Form a Cross-Functional Response Team
Businesses must form a dedicated team dedicated to ensuring that all business processes run while maintaining the health and safety of colleagues and customers. The team focus needs to break down into four different paths:
- Management & Prosperity
- Financial stress tests & emergency planning
- Monitor supply chain management
- Marketing & Sales
- Ensuring company liquidity and making contingency plans
Identify the trigger variables that will affect both revenue and costs and then apply them to the company’s financial scenario to see the balance sheet. Contingency plans can carry up for various outcomes, such as portfolio optimization through divestment, cost reduction, and others.
- Stabilize the supply chain.
Turn business attention to pre-booking capacity. For long-term stabilization, businesses must plan for consumer demand more thoroughly and make the supply chain more resilient.
- Stay close to the customer.
In times of crisis, businesses need to keep customers engaged and close, for example, by providing special offers and discounts. In the long term, companies must assess and target other market segments for growth opportunities.
You can see this article for Indonesian Language by clicking this.
Valencia adalah salah satu tim content writer kami di Workspez. Selain memposting blog, dia juga author untuk sosial media Workspez Indonesia.