The COVID-19 pandemic has caused enormous economic losses for Indonesia. As part of efforts to control the spread of the virus, the Indonesian government has implemented a Large-Scale Social Restriction (PSBB) policy, which requires most businesses to stop or at least reduce activities that require direct contact with other people.
Based on the Court Tracking Information System (SIPP-PN) update in 2021, so far there are 691 registered cases with details of 590 cases of Bankruptcy and Suspension of Obligations for Payment of Debt (PKPU) and 101 cases of Petition for Declaration of Bankruptcy. Every year, cases registered at SIPP-PN continue to increase with an average.
increase of around 30% and in 2020 there is an increase in cases of 31.63% when compared to 2019. Allegedly, this increase was thought to be caused by several business obstacles that have occurred in recent years, such as competitiveness, operations, demand, and supply chain, which in 2020 was exacerbated by the global COVID-19 pandemic.
As for the growth recorded in early 2021, there was an increase in the number of cases by 112% (YoY) or 46 cases recorded in January 2021. Somehow the percentage dropped in February 2021, as there was 33% YoY increase, or only 18 new cases recorded. However, the percentage increased again in March 2021 by 86% YoY), in which there were 42 new cases. Allegedly, the increase was due to more companies that were unable to survive in businesses after being affected by the COVID-19 pandemic in 2020.
After further research, from 691 recorded cases, there were 755 subjects involved from 22 business sectors (including individuals). After processing and analysing data, most of the subjects involved in the case are from manufacturing sector (107 units or 14% of the total subjects involved), real estate (101 units or 13% of the total subjects involved), financial and insurance activities (78 units or 10% of the total subjects involved), construction (58 units or 8% of the total subjects involved), and mining and quarrying (45 units or 6% of the total subjects involved).
It is noted that there are as many as 107 manufacturing companies involved in the Bankruptcy and Suspension of Obligation for Payment of Debts (PKPU) cases. Based on the types of industry, most of the companies are from the textile industry sector, amounting to 27.88%, while the rest were under 5% of the total. The high number of textile industry companies involved in PKPU cases is due to the poor economic conditions of the industry in recent years so obstacles that have emerged after the COVID-19 pandemic have made it even more difficult for these companies to survive.