JAKARTA. The number of visitors to malls in Jakarta has dropped by around 10% to 40%. This decline is expected to be a hard hit for retail businesses in Indonesia.
Mandiri Sekuritas estimates that the retail sector will experience a decline in net profit, after a stress-test analysis due to the spread of the coronavirus (Covid-19) was carried out in this sector. "However, some retail businesses are still running relatively well, such as stand-alone retail, supermarket, and F&B shop, "said Mandiri Sekuritas in their research report.
According to the results of Mandiri Sekuritas' stress-test analysis, retail businesses in a number of cities affected by Covid-19 in Indonesia will experience a slowdown over the next 14 days.
The slowdown included a drop in net profit after tax by between 4% and 18%. The decline may be worse (around 12% to 34%) if all cities in Indonesia were affected by Covid-19. (KR/AR)