Chairman of the Indonesian Employers Association (Apindo) Hariyadi Sukamdani said the decline in the performance of the national manufacturing industry was the impact of the implementation of the Level 4 Implementation of Community Activity Restrictions (PPKM).

The decline in the manufacturing sector can be seen from the Indonesian Manufacturing Purchasing Managers' Index (PMI) announced by IHS Markit. The PMI was at 40.1 in July, before hitting 53.5 in June.

"It depends on our manufacturing activities. If manufacturing activities return to normal, the numbers (Indonesian Manufacturing PMI) will automatically return again," said Hariyadi.

He explained that the pandemic would continue to be a nuisance, because positive cases of Covid-19 were still high, and the number of patients who died was increasing. So, he said, there is no certainty when the manufacturing industry can move normally.

"With such conditions, first, we must regulate what is not disturbed, for example exports, how to avoid disruption. Second, regarding products that are needed by the community, as long as they can be worked on, we must continue to pursue them, not only those that are essential and critical, which can also be seen on the outside," he said.

According to him, the non-essential manufacturing sector is even bigger and has potential. "For example, related to the basic needs of the community, garment textiles are still needed, even more intensely related to food products can still be boosted. Anyway, related to manufacturing that supports the needs of the community is encouraged," he said.

On the other hand, he continued, efforts to overcome the pandemic must not be slack. "The key is there, outside Java, we see cases (Covid-19) starting to rise, if the changes go wrong. So efforts to handle the pandemic must be increased," said Hariyadi.

Compensation for the business world, he continued, is needed, one of which is related to discounted electricity rates and the elimination of minimum electricity tariffs. "We already don't know, the demand for electricity tariff incentives has not been ignored. We just ask for electricity tariffs until now, we don't know the response, the reason is that it's all difficult," he said.

The government, he continued, has indeed poured several incentives for the business world. Just a little effect.

"Corporations are left to survive on their own. For example, the Pph 25 policy, which enjoys companies that have no problems, if the company has problems, it loses and doesn't pay taxes. Then the Pph 21 policy is also for companies that don't reduce their employees' salaries, if the salaries of their employees go down, right? pay too. So this government incentive is not useless but the target is not right, "he explained.

According to him, the handling of the pandemic and the economy must go hand in hand, because from the start the government did not choose to impose a regional quarantine or lockdown. Hariyadi is aware that this is not easy, but it must be done.

"The handling of the pandemic must be massive. It's just that the vaccine target of one million a day cannot be pursued and testing is still expensive, above Rp 700 thousand for PCR," he said.