Half of Japanese firms in Indonesia suffering from coronavirus contagion

09, Mar. 2020

Photo by π“΄π“˜π“‘π“š 𝕝𝔸𝕀 on Unsplash
Photo by π“΄π“˜π“‘π“š 𝕝𝔸𝕀 on Unsplash

JAKARTA, NNA - The new coronavirus outbreak has had negative effects on more than half of major Japanese firms based in Indonesia, a joint survey by a Japanese business lobby and a governmental body showed.

The survey was conducted by the Jakarta Japan Club and Japan External Trade Organization from Feb. 28 to last Thursday, tallying 44 board-member firms of the business group, of which 42 responded.

According to the survey results released Friday, 7 percent of the respondents said the virus will cause a considerable negative impact on their earnings, with 46 percent anticipating a mild negative impact.

With multiple answers allowed, 57 percent cited difficulties in procuring parts, materials and products overseas as a major business impediment, while 51 percent mentioned a drop in sales with a global economic slowdown.

Of the firms worrying about procurement difficulties, 29 percent are already experiencing lags and problems, while 52 percent think they will occur within the next three months.

In order to avoid further trouble, 43 percent said they are considering procuring from alternative regions, and the same percentage of firms said they will continue to rely on existing suppliers in China, the epicenter of the virus outbreak.

Keishi Suzuki, president of JETRO Jakarta Office, said it is necessary to closely monitor the Indonesian government's reactions, such as changes in immigration restrictions, which currently limit entry by people coming from China, Iran, Italy and South Korea. (NNA/Kyodo)