Covid-19 Makes Small Businesses Stronger

Name: Covid-19 Makes Small Businesses Stronger
Uploaded: 2020-11-07T05:49:48Z
Duration: 20 min 32 s
Description: The Covid-19 pandemic has tested the resilience of businesses throughout the archipelago. After being closed for months, the 4 by 6 meter workshop on the bank of the Citarum River only recently began to operate again.

The Covid-19 pandemic has tested the resilience of businesses throughout the archipelago. After being closed for months, the 4 by 6 meter workshop on the bank of the Citarum River only recently began to operate again.

By MACHRADIN WAHYUDI RITONGA/MELATI MEWANGI/TATANG MULYANA SINAGA

· 6 minutes read

The Covid-19 pandemic has tested the resilience of businesses throughout the archipelago. In West Java, a world-class outdoor sports equipment maker is trying hard not to give up, seeking to survive through various business activities.

A stockpile of rubber boats at CV Air Nusantara’s workshop in Cipatat, West Bandung, showed the severe impact of the Covid-19 pandemic. Some of them looked worn. The buyers, who had to shut down their tourism businesses due to the pandemic, have yet to get them. In another corner, five boats ordered by Japanese buyers were still waiting for the “export door” to be opened again.

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Production at the company has yet to fully resume. After being closed for months, the 4 by 6 meter workshop on the bank of the Citarum River only recently began to operate again.

On Tuesday (3/11/2020), Deni (26), one of the workers, returned to work. His hands were painstakingly peeling off the remaining glue on a rubber boat belonging to the West Java Police. His eyes were wary of looking for leaks that had to be covered with the glue.

Bayu Lesmana (30), the founder of CV Air Nusantara, said that this time was the toughest period he had experienced since he started the business five years ago. The company previously produced at least 20 inflatable boats of various sizes per month for both domestic and foreign buyers. Now, the order volume is less than half of the usual. An inflatable boat with a capacity of six people is sold for Rp 15 million (US$1,034), while one with a capacity of eight people can fetch up to Rp 20 million.

However, like a rubber boat that is resilient in swift currents, Bayu and his eight workers also do not easily give up. The Covid-19 pandemic has made them creative. Materials made of PVC are used to make waterproof bags to miniature rubber boats. Most of their products are sold through social media.

Bayu also ventured to open a rubber boat repair workshop in Magelang, Central Java, in early 2020. The business there, he said, had begun to grow in the midst of the Covid-19 pandemic.

Around the Elo River, Magelang, for example, there are 22 rafting tour operators. Each operator owns 15-25 inflatable boats. His orders come not only from tourism, but also from disaster mitigation institutions and volunteers.

This week alone, Bayu and his workers produced six rubber boats. Nine boats are still in planning and 32 others are awaiting customer approval. "The Covid-19 pandemic has taught many lessons. You have to have lots of ideas if you want to survive, "he said.

Re-export

The expertise of Toni Ruhimat (48), a life-saver float maker in Bandung, has also been tested. The production of Annapurna, the buoy brand, had virtually come to standstill. Orders and turnover fell by 70 percent. Previously, he produced between 100 and 150 buoys a month. Now, he only makes 50 buoys a month.

Despite the sluggish business, Toni did not keep quiet. He returned to action in water sports activities with various communities. He became a couch in a water rescue training for communities and volunteers. He introduced various functions and types of buoys in the training.

All buoys are produced to meet international standards. Athletes have used the products for water sports competitions in various parts of the world.

Unexpectedly, his social activity helped raise the orders for Annapurna buoys. The promotion through the social media has boosted sales to both local and foreign buyers. All buoys are produced to meet international standards. Athletes have used the products for water sports competitions in various parts of the world.

When the tourist spots were reopened, he began to receive a flood of orders. In August, for example, he received orders for 315 buoys. The price is between Rp 85,000 and IDR 550,000 each. The opening of exports to Malaysia provided “fresh air. Five sets of water sports equipment were sent there. Next year, Toni plans to export to Japan.

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"Currently, two employees, out of the previous six, are working. As production has begun to increase, other workers are expected to begin to work again in early December. The Covid-19 pandemic has not discouraged us. Staying loyal to our expertise is a strong asset to survive, "he said.

Being an entrepreneur, you have to be resourceful to survive. Abalaba founder Rahim Asyik Budi Pramono (52), for example, has tried a new innovation to keep his business strong.

Founded in 2000, Abalaba is the first company in Asia to produce stairs from fiberglass and resin. From Bandung, Abalaba has joined the world stair climbing competition with Entreprises (France) and Walltopia (Bulgaria).

Orders for stairs worth Rp 400 million to Rp 3 billion no longer come in. Now, Rahim produces home stairs priced at between Rp 7.5 million and Rp 15 million each. "So far, no workers have been laid off," said Rahim.

Micro, small and medium enterprises (MSMEs) can indeed help to restore the economy. West Java Governor Ridwan Kamil appealed to the public to shop for MSME products to help drive the economic sector that employs middle- to lower-class citizens.

"By buying MSME products, they help drive the economy of the local residents," said Kamil.

The head of Bank Indonesia’s representative office in West Java, Herawanto, said a number of indicators had pointed to economic recovery in West Java.

The real sales index, for example, rose from 203.2 in the second quarter to 207.5 in the third quarter. Meanwhile, the growth of the loans for investment rose from 9.2 percent to 10.7 percent.

"Exports of textiles, textile products, automotive products and electronics to the United States and Southeast Asia have also increased. This is a positive signal for economic improvement, "he said.

The Covid-19 pandemic is clearly indiscriminate. Even extreme sports activists have been hard hit. The pandemic may still last a long time. However, there are always opportunities for those who don’t give up easily. (CORNELIUS HELMY)

Editor:

naranasrullah

CITARUM RIVER kompas cetak covid-19 small businesses Elo River rubber boat