Surviving with Collaboration and Innovation

Kompas/Priyombodo

The 11th Kompas 100 CEO Forum with the theme "Let\'s Collaborate: Rising in Pandemic Era" was opened by President Joko Widodo virtually in Jakarta, Thursday (21/1/2021).

Collaborating between numerous parties is needed to overcome the impact of a pandemic on the business world. Collaboration is part of a strategy to survive and emerge victorious from the economic disruption caused by the pandemic.

This is the view businesspeople expressed in the Kompas100 CEO Forum. This forum consists of CEOs of companies that are members of the Kompas-100 Index, the stock index of 100 companies on the Indonesia Stock Exchange (IDX). Kompas100 has been published by the IDX in collaboration with the Kompas daily since 2007.

Also read: 2021 is the Starting Point of the Acceleration of Economic Recovery

Apart from having high liquidity and large capitalization, the selected stocks in the Kompas-100 index represent the majority of the total market capitalization of all IDX-listed shares.

Through questionnaires distributed to the top executives of these companies, up to 46 percent of respondents said they had to collaborate widely, both with business and nonbusiness circles, to survive the pandemic-induced recession.

Also read: Collaboration for Revival in 2021

The rest, 22 percent of the respondents, collaborate across business sectors, while 13 percent of them tend to collaborate within their business sector. However, 19.6 percent of respondents admitted that they have no collaboration.

Improved strategies are considered necessary in dealing with the pandemic, the survey shows, and innovation is seen as a key requirement for survival.

KOMPAS/TOTOK WIJAYANTO

Stock price movements are displayed on the walls of the Indonesia Stock Exchange building, Jakarta, after the opening of stock trading in 2021, Monday (4/1/2021).

This viewpoint has prompted 61 percent of the surveyed businesspeople to pursue innovation that is more diverse than before the pandemic. However, for some businesses, the pandemic has even made innovation difficult, so that little change can be realized.

Every shock or crisis always leaves its opposite trail. Those who are left behind and others who are able to make it through.

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The economic disruption caused by the pandemic has also created two opposing views. Some of the entrepreneurs (45 percent) see it as a threat, others (46 percent) see it as an opportunity. Those who see it as an opportunity make more innovation during the pandemic than ever before.

The current business conditions in Indonesia are considered unfavorable by most entrepreneurs, with 33 percent seeing them as poor and 46 percent as rather poor. Only 15 percent view them as somewhat favorable. However, when it comes to the business they are in, the viewpoint of the business leaders is cautiously optimistic. Those who describe the current conditions as rather good account for 26 percent of respondents.

Back to normal soon

Optimism is higher when it comes to future prospects. Most of the businesspeople (54 percent) see Indonesia\'s business and economic conditions recovering in the next 1-2 years, an assessment that has encouraged 61 percent of the business leaders to prepare for an expansion of their businesses.

Also read: Private Sector to Participate in Covid-19 Vaccination Program

Specifically addressing economic conditions in 2021, the business leaders also expressed a high degree of optimism. Only 20 percent are pessimistic. The rest are optimistic or very optimistic.

KOMPAS/KARINA ISNA IRAWAN

MSME business conditions during the Covid-19 pandemic. Source: Asian Development Bank

Those who are pessimistic tend to view the pandemic as a threat to business. On the other hand, those who are optimistic tend to see the pandemic as an opportunity.

Despite high optimism, the businesspeople feel it is impossible to walk alone in the face of a recession due to the prolonged pandemic. Even though all kind of innovation has been carried out, collaboration with the government through its policies is deemed necessary. The policies, for example, are related to fiscal aspects, licensing, incentives, subsidies, capital and interest rates.

Also read: Indonesian Economy After Vaccination

A swift vaccination campaign and the enforcement of strict health protocols are viewed as the most fundamental prerequisites for increased business activity. Even though the leaders quizzed believe that the government\'s efforts in dealing with the health crisis are good, they still see many weaknesses that could hinder efforts to rapidly overcome the pandemic.

One thing that is felt to be an obstacle in solving the pandemic is the government\'s communication strategy. As many as 40 percent of the businessmen view this as weak.

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However, the role of the business world is felt to be urgently needed to accelerate the national health recovery. This view was expressed by the president director of pharmaceutical company PT Kalbe Farma Tbk, Vidjongtius.

He urged the government to "accelerate vaccination by increasing collaboration with the private sector and relaxing regulations for heavily impacted industries." ( R&D Division of Kompas)

This article was translated by Hyginus Hardoyo.