Instead of Laying off Employees, they employ More People
In the city of Medan, a number of traders have survived thanks to their ability to quickly adapt to digital technology.
By
NIKSON SINAGA AND AUFRIDA WISMI WARASTRI
·5 minutes read
It has been nearly a year since the emergence of the Covid-19 outbreak in the country, which has severely affected daily life. In the city of Medan, a number of traders have survived thanks to their ability to quickly adapt to digital technology.
Deftly, Kesi beru Ginting (49) took vegetables out from a refrigerator on Thursday morning (25/2/2021). The vegetables were then arranged on a large table along with other foodstuffs such as guava, jicama, and other fruits.
On another table, plastic boxes filled with shallots, garlic, onions, ginger, turmeric, and various spices were neatly arranged. In another corner, employees were busily packing fish, chicken and shrimps.
Before the Covid-19 pandemic, Kesi had never experienced such a busy atmosphere. The employees of the Matakail Communication event organizer usually arranged event properties, not kitchen ingredients. "This is our way of surviving so that layoffs can be avoided ," Kesiberu said.
The office and warehouse of the Matakail Communication on Jalan Bunga Terompet, Sempakata, Medan, North Sumatra, has been transformed into a place to store vegetables and herbs. Refrigerators with vegetables line up in the warehouse.
The office and its employees who usually organized business event such as a product launch or a business gathering are now focusing their activities on the sales of food products.
"It was scary at that time. We closed our office at the start of the pandemic. Many events were postponed and canceled. Initially we thought it would last only three months, but it has continued until now,”said Henny Pandiangan (42), the owner of Matakail.
Amid the pressure of the situation, Henny contacted her relative at the Harian Bohoy, Samosir. His relative who was a farmer complained that his shallots were not selling well.
Henny later bought 60 kilograms of shallots and were delivered to Medan. Then, she offered the shallots to her friends via social media. Within a week, the shallots were sold out. Henny, who held an agriculture degree, began to think about selling farming products that farmers could not bring to the city. He asked her employees to take part.
Henny sold the farm products she bought from farmers in North Tapanuli, Karo and Simalungun through social media. The farmers sent fresh vegetables twice a week. Henny bought vegetables at prices of 30 percent above the farming costs. "Even if the prices in the market decline, we stick to our price so that farmers can continue to their farming activities,” said Henny.
The farming products, especially vegetables, are sold online through various applications and social media. The vegetables are delivered to the houses of the buyers. If some of the vegetables are damaged, they are replaced with the fresh ones. Henny receives about 50 orders a day, with transaction value ranging from tens of thousands to millions of rupiah. "The business can survive and layoffs can be avoided” said Henny, who had to cut the salaries of its employees at the start of the pandemic.
Now, he has added 13 employees to take care of his new business, called Hutafreshmarket, which has its own application to market and sell the farm products. A number of investors have begun to look into Henny’s new business.
Towards the end of 2020, event organizers had begun to resume their activities because government had allowed the holding of business gatherings with strict health protocols such as with a limited number of participants. Apart from that, event organizers also hold online events to be able to survive.
Robert Sianipar, owner of the Ulos Sianipar Gallery on Jalan Pendidikan, Medan, also has a similar experience. He had closed the shop for three months. More than 100 employees were laid off and hundreds of ulos (traditional cloth) weavers stopped working. "During the period between June, July and August, the gallery was completely closed," said Robert.
After discussing with his employees, he established a formal company named PT Galang Ulos Sianipar to market and sell the traditional clothes through online marketplaces and social media. Twice a day, his team broadcasts live on social media. He has hired five new employees to handle the business.
Towards the end of 2020, the gallery could be opened with strict health protocols. Now, the turnover has reached 40 percent of those booked before the pandemic.
Realizing that his ulos had a limited number of customers, he expanded his business into the fishery sector. He bought two fishing boats in Sibolga at the end of 2020, each with capacity of 22 deadweight tons. Each ship employs 11 workers.
Continue to exist
The head of Bank Indonesia’s representative office for North Sumatra, Soekowardojo, said the agriculture, forestry and fishery sectors were the main pillars of North Sumatra\'s economy amid the pandemic. "This sector contributes greatly to the North Sumatra economy, about 21 percent of North Sumatra\'s total gross regional domestic product," he said. These sectors have the most potential to be developed during a pandemic.
Wahyu Ario Pratomo, a lecturer at the School of Economics and Business at the University of North Sumatra, said that the food business would be able to survive in any condition, including during a pandemic. "This is the reason why the economic contraction experienced by North Sumatra was not so deep because it was supported by the agricultural sector," he said.
Along with the rapid adoption of the digital technology among young people and the growing use of online marketplaces, businesses related to food products can survive the pandemic. Due to their ability to adopt to the new situation, Henny, Robert and many other business people in Medan continue to exist. In fact, their business are growing amid the pandemic.
(This article was translated byHendarsyah Tarmizi)