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Coronavirus Outbreak Affects Startup Business in Indonesia

Coronavirus Outbreak Affects Startup Business in Indonesia

The existence of the Covid-19 outbreak has not yet fully impacted the financial financing technology business. However, some special fintech funds for tourism and worship such as the Umrah began to be affected.

Although not yet known how big, the Indonesian Joint Funding Fintech Association (AFPI) said there was a decline in fintech consumers who wanted to borrow funds for Umrah.

Moreover, the Government of Saudi Arabia suspended Umrah, including for Indonesian worshipers. He said some of the fintech who had financed the Umrah included Ammana and Bsalam.

“Of course it was directly affected by the halt of sending Umrah pilgrims to the holy land of Mecca,” AFPI Daily Chairman Kuseryansyah told Katadata.co.id, Friday (13/3). Besides the decline in interest in traveling because of concerns about the coronavirus also has an impact on fintech.

But he continued to monitor the development of the coronavirus outbreak and its impact on the fintech industry as a whole. “We are observing again to other sectors,” Kuseryansyah said.

Coronavirus Outbreak Affects Startup Business in Indonesia

From the indirect impact, APFI also anticipates the possibility of decreasing investment from lenders. Moreover, if there is instability in national and global economic conditions.

Based on OJK data until December 2019, there were 164 fintech lending registered at OJK until the end of last year, as many as 25 of them are licensed. But as of February, the number of AFPI members became 161 organizers because one revoked the list, and the other two returned the registration marks.

Total lending from fintech lending reached Rp 81.5 trillion, an increase of 259% since the beginning of the year. The number of lenders (lenders) also increased by 192% to 605,935. While the number of borrower accounts (borrowers) also grew 325% to 18,569,123 entities.

Covid-19 Affects National Tourism Sector, Airplane Ticket Sales Down 60%

Coronavirus outbreaks have a significant impact on businesses in the national tourism sector. Because the threat of the spread of the coronavirus forced the government to temporarily close flight access to and from China, so tourists from the Bamboo Curtain country could not visit Indonesia, and vice versa.

Traveloka, as one of the domestic tourist service provider platforms, claims that it has not calculated losses due to coronavirus.

Related to the issue of the spread of the coronavirus, Andhini said, his party focused on facilitating users who want to cancel their orders and take their money back or refund. “We are more focused on helping consumers overcome the problems faced. For example, want to refund plane tickets,” he said.

Coronavirus Outbreak Affects Startup Business in Indonesia

Regarding the flight ticket sales, Pauline said, the first week after Indonesia was positively corona, the figure dropped by 60 percent. “Cancellation cancellations reached 80 percent,” he continued.

Traveloka Provides Information Related to Coronavirus

Meanwhile, in the midst of a corona outbreak, a company whose one of its services is airplane tickets booking, Traveloka, said that amid the risk of covid-19 outbreak, their main focus is to ensure user safety and comfort.

“We will continue to coordinate intensively with relevant parties, including the government and partners, and monitor this situation on an ongoing basis,” Head of Transport Marketing Traveloka Andhini Putri said via message, Friday, March 6, 2020.

Coronavirus Outbreak Affects Startup Business in Indonesia

Andhini continued, their party is also ready to support initiatives that are currently or will be carried out by the government to improve the tourism sector in the country in the midst of the corona outbreak.

Andhini said, since January 28, 2020, their party has provided a link on the official page of Traveloka containing the latest information from airline partners, the policies of each airline regarding the COVID-19 outbreak, as well as practical guidelines for preventing COVID-19 infection.

“This information can also be accessed on the front page, the ‘Important News’ section, in the Traveloka application. We also provide information regarding COVID-19 on our Instagram platform,” she said.

A series of these efforts, Andhini said, aims to make it easier for users to plan and prepare their trips better.