The Indonesian government plans to evaluate the implementation of large-scale social restrictions (Pembatasan Sosial Berskala Besar - PSBB) as many companies of non-essential businesses are still neglecting the orders and requiring their employees to come in for work, causing packed public transportation services.
As SSESSMENTS.COM noted, the capital Jakarta became the first Indonesian region to implement PSBB on April 10. So far, the Ministry of Health has approved requests from two provinces and 16 municipalities and regencies to impose the measure. These areas include Jakarta, West Sumatra, Depok, Bogor, Bekasi, South Tangerang, and Tangerang of Greater Jakarta; Bandung and Cimahi in West Java; Tegal in Central Java; Pekanbaru in Riau; and Makassar in South Sulawesi.
Chief of the national COVID-19 task force, Doni Monardo, expressed concerns that offices and factories did not effectively implement the physical distancing measure. He also urged non-essential businesses to follow through with the work-from-home policy. The Indonesian Trade Union Confederation (Konfederasi Serikat Pekerja Indonesia - KSPI) said dozens of non-essential companies, including electronics and garment manufacturers were granted licences by the Industry Ministry to operate in Jakarta although PSBB is in place.
Industry Minister Agus Gumiwang Kartasasmita argued that the ministry had complied with PSBB guidelines and consulted with Jakarta Governor Anies Baswedan, in giving operational permits to those companies. Indonesia allows essential sectors such as financial, food, medicine, fuel, retail, water, logistics, and communications to continue operation under PSBB, while other sectors are ordered to follow the work-from-home policy.
However, Governor Anies said he would revoke permits of companies which violate PSBB guidelines. Meanwhile, West Java Governor Ridwan Kamil allows companies to operate as long as they implement health protocols and record no positive cases. Ridwan also asks regional authorities to inspect the implementation of the policy among companies.
Previously SSESSMENTS.COM reported that downstream converters are affected by PSBB. One of them said its machine ran at only 20-30% of capacity following output cuts by its main customer amid the slowdown in economic activity. Meanwhile, another converter said it had reduced production to 50% due to significant decrease in demand.
Please click the link below to read our deep analysis on the COVID-19 impact on Indonesian polymer market.
AnalysisSSESSMENTS: Detailed Analysis of COVID-19 Impact On Business, Polymers Demand in Indonesia
