JAKARTA. PT Lippo Karawaci Tbk (LPKR), a member of Lippo Group engaged in the property sector, announced the impact of the COVID-19 pandemic on its business over the past 3 months. The company is forced to make several adjustments to reduce operating expenses, including closing its malls.
A number of malls, hotels, and parking areas owned and managed by LPKR, have been closed following the implementation of the Large-Scale Social Restrictions (PSBB) policy to cope with COVID-19. "It is part of our efforts to reduce operational expenses," explained LPKR management through an official statement on the Indonesia Stock Exchange (IDX) on Wednesday (3/6).
By the end of 2019, LPKR employed 14,927 employees. However, due to the COVID-19 pandemic, the company's management has laid off 676 employees, cut salaries of 619 employees, and put 73 employees on furlough.
LPKR management estimates that the COVID-19 pandemic may affect its performance during the first quarter (Q1) of 2020 by up to 25%. However, the company still tries to optimize its business, with a number of efforts. Starting from maintaining the stability of cash, streamlining expenses, and looking for new business opportunities. (KR/AR)