According to a survey report from Statistics Indonesia (BPS), the 2020 Covid-19 pandemic has caused a decline in the production of Large and Medium Industries (IBS) and Micro and Small Industries (IMK) in Indonesia. Both industrial scales experienced a significant decline in production growth year on year (YoY) in the second quarter of 2020, respectively minus 19.73% and minus 21.31%.
In addition to the pressure caused by the Covid-19 pandemic crisis, Dr. Ana Uluwiyah, a Doctor from the Faculty of Economics and Business (FEB) of Universitas Indonesia (UI) said that the manufacturing industry in Indonesia has faced challenges since the Asian economic crisis in 1997. Before the crisis, the manufacturing sector had been a pillar of the Indonesian economy since the 1960s. However, at the end of 1997, the issue of deindustrialization began to emerge.
“Therefore, it is important to analyze the impact of the crisis on the performance of manufacturing industry companies in Indonesia to understand how the crisis affects the resilience of companies in this sector,” said Dr. Ana in her doctoral promotion hearing on Friday, November 8, at the FEB Postgraduate Building, UI Depok Campus.
The analysis that has been outlined in her dissertation has four objectives, namely developing a company performance index at the micro level, measuring the level of resilience of IBS companies to Covid-19, analyzing the impact of Covid-19 on the performance of IBS and IMK industrial companies, and analyzing the role of resilience strategies against the impact of Covid-19 on company performance, the aim of which is to obtain direct and indirect influences.
In her research, titled “Dampak Pandemi Covid-19 dan Strategi Ketahanan Terhadap Kinerja Perusahaan Industri Manufaktur di Indonesia” (The Impact of the Covid-19 Pandemic and Resilience Strategies on the Performance of Manufacturing Industry Companies in Indonesia), the results showed that the average company performance index during the Covid-19 pandemic for IBS and IMK experienced a significant decline. However, IBS showed a recovery in performance after the beginning of the pandemic, although it had not reached pre-pandemic levels.
Then, on the differences in performance based on location and type of product, Dr. Ana said that in IMK, businesses outside Java-Bali experienced a greater decline in performance compared to those in Java-Bali, while in IBS, companies outside Java-Bali or those producing staple products showed better performance. However, the performance of non-staple companies recovered more significantly after the start of the pandemic.
Meanwhile, the IBS business resilience index to the pandemic reached 84%, down 16% from normal conditions. “Companies involved in exports and innovation, as well as located in industrial areas are more resilient to the pandemic,” said Dr. Ana.
At the open session for the doctoral promotion, Dr. Ana Uluwiyah successfully defended her dissertation and received a very satisfactory predicate. She graduated as the 149th doctor in Economics.
