Despite the contraction, several signs of Indonesia’s economic recovery began to be seen in Q1/2021, such as the improvement in the retail sales index, consumer confidence index, and the manufacturing PMI. Even so, the Indonesian Shopping Center Management Association (APPBI) said that during the period of economic growth that has not really improved, the potential for bankruptcy of the retail sector is still there and is quite high.

If you look at the development of the retail sector, several large business actors who have been affected by the pandemic since the beginning of 2020 until now are starting to show their impact, such as closing some or even all outlets of several retail segments. Here are some of these entrepreneurs:

  1. PT. Hero Supermarket TbkChanges in market dynamics have made the trend of shopping with the hypermarket format decline in recent years. Quote from, PT Hero Supermarket Tbk (HERO) decided to close all Giant outlets in Indonesia starting at the end of July 2021. This step had to be taken because the business strategy used had to adapt to current conditions. The closing of all Giant outlets owned by HERO was motivated by a company that will focus its business on other trademarks, namely IKEA, Guardian, and Hero Supermarket. HERO believes that the household appliances, health and beauty sectors, as well as daily necessities for the upper class still have high growth potential. Therefore, HERO closed all Giant outlets and converted 5 Giant outlets into IKEA. Then, the company will open to 100 new Guardian outlets until 2022. Other than that, there is a negotiation process that has the potential to transfer ownership of several Giant outlets to third parties.The following is the growth of sales and profit from PT Hero Supermarket Tbk in the last 2 years:
    Based on HERO 2020 and Q1/2021 financial reports, there was a 27% (YoY) decrease in the company’s revenue in 2020 to IDR 8,893,785 million as compared to 2019. In addition, there was a very significant increase in loss, reaching 4205% (YoY) or more than 40x the decline in 2019 or a loss of IDR 1,214,602 million.


    Meanwhile, based on quarterly finances, in Q1/2021, there was a 32% decrease in revenue or to IDR 1,763.106 million compared to the same period in 2020. However, there was a 96% decrease in loss compared to the same period in 2020. This can indicate an improvement from the financial side.

  2. PT. Matahari Department Store TbkThe other company is PT Matahari Department Store Tbk (MATAHARI). Quoted from, MATAHARI will close 13 outlets of Matahari Department Stores in various regions, because their operations burden MATAHARI’s finances in general. In total, MATAHARI has 147 Department Stores throughout Indonesia. In addition to the 13 outlets that are certain to be closed, MATAHARI is also monitoring 10 other outlets that are experiencing similar problems (potentially closing) because in their current condition they are not producing enough.The following is the sales and profit growth of MATAHARI Tbk in the last 2 years:

    Based on the financial statements of MATAHARI 2020 and Q1/2021, there was a decline in the company’s revenue in 2020 by 53% (YoY) to IDR 3,094,173 million, as compared to 2019. In addition, there was a decrease in profit of 149% (YoY) or a loss of IDR 870.037 million. Meanwhile, based on quarterly finances, in Q1/2021, there was a decrease in revenue by 24% or to IDR 741.402 million as compared to the same period in 2020. However, there was an increase in loss of 1% as compared to the same period in 2020, which can be indicated that there are not many changes from the financial side.

  3. PT. Tozy SentosaIn addition to the 2 listed companies above, one of the large business actors affected is PT Tozy Sentosa (CENTRO) with Centro Department the store. Based on various sources, a few outlets of the Centro Department Stores in a few areas such as Ambarrukmo Mall Yogyakarta, Margo City Depok, and Bintaro Xchange have been closed.As reported by, the closure was carried out after CENTRO received a lawsuit for Bankruptcy and Suspension of Obligation for Payment of Debts (PKPU) from 5 companies. After that, the Central Jakarta District Court declared PT Tozi Sentosa officially bankrupt on May 17, 2021. Therefore, all Centro Department outlets. The store is closed and no longer operating.

    Based on the information stated above, each business actor does have different abilities and endurance from one another. However, if the economy does not recover soon, any business actor will eventually collapse as well.