JAKARTA. At least 50 members of the Indonesian Issuers Association (AEI) experienced cash flow difficulties due to the COVID-19 pandemic. Those issuers have made various rescue efforts to avoid bankruptcy.
"More than 50 AEI members said their [cash flow] is not strong, at the extreme, they have to negotiate with banks, lay off employees," said Deputy Chairperson of AEI, Bobby Gafur Umar, as quoted from CNBC Indonesia on Monday (11/5).
"Up to one point where the companies did not have strong enough cashflow, there was a wave of layoffs, this had an impact not only on the economy, but also social. This caused the risk factors to rise," he added.
The uncertain economic condition, said Bobby, increased risk factors so foreign investors chose to sell-off. Capital outflows have been recorded to reach Rp. 21 trillion since the beginning of the year.
To that end, he said the government must help by providing sufficient liquidity to banks so that banks can provide relaxation to business sectors directly affected by the pandemic. (AM/AR)