Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid spoke in response to the release of IHS Markit regarding the Indonesian Manufacturing Purchasing Managers' Index (PMI) for the July period, which was in a contraction position of 40.1.

The contraction occurred due to restrictions on mobility through Emergency PPKM in response to the recent surge in Covid-19 cases. This is after eight consecutive months of recording an expansionary level above 50 points since June 2020.

Arsjad Rasjid explained, the majority of business players currently feel the negative impact of the industrial contraction. The manufacturing industry is even threatened with reducing employees again.

He then gave an example of the textile and textile product or TPT industry which is currently difficult to carry out production with applicable regulations. "The textile industry is eager to be able to work with strict health protocols so that there is no need to lay off employees. In fact, the ceramics industry has also reported the danger of laying off up to 20,000 employees without salary," said Arsjad.

In addition, according to him, the export-oriented industrial sector is also in danger of not being able to meet the needs of its buyers if only a few enter. Not to mention, the obligation to close the work area if someone is infected also makes it more difficult for the industry.

Not only the manufacturing sector, he also received a report from the transportation sector which would be the hardest sector if the pandemic continued. Next, related sectors such as hotels, restaurants, cafes or hospitality are severely affected.

The retail sector, especially malls, said Arsjad, has also reported threats of layoffs of 30 percent of the total employees at the mall, which is around 280,000 employees. "Meanwhile, supermarkets have collapsed, apart from the pandemic, because of changing shopping patterns, like Giant, which has officially closed."

The industry is under heavy pressure, according to him, because they still have to pay for mandatory operational expenses ranging from electricity, loans, to employee salaries.

Therefore, Kadin will continue to strive to be a bridge for the government, employers, workers in connecting the gap between lost income and remaining obligations. "In principle, we also understand that currently all parties, including the government, workers, and the community, have lost their income," he said.