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Startup Sectors that are Predicted to be more Pressed in Level PPKM 4

Startup Sectors that are Predicted to be more Pressed in Level PPKM 4

The government will decide on the continuation of the Implementation of Restrictions on Community Activities or PPKM level 4 from this afternoon to tonight (2/8).

Investors from the venture capital sector assessed that the four startup sectors would be increasingly hit if this policy was extended. The four are tourism, hotels and restaurants, lifestyle, and those related to workshops.

However, “the increase in the percentage of the population vaccinated against Covid-19 makes the market optimistic,” said Edward Ismawan Chamdani, Co-Founder and Managing Partner at Ideosource and Gayo Capital, Monday (2/8).

Startup Sectors that are Predicted to be more Pressed in Level PPKM 4

This can be seen from the demand for plane tickets and hotel rooms, especially during the holiday period. The Central Statistics Agency (BPS) noted that the number of domestic air transport passengers rose 5.62% from 2.54 million in March to 2.8 million in April.

The number even increased by 233% compared to the same period last year (year on year/yoy).

However, the number of domestic passengers fell during January-April (about 44.71% yoy) to 9.7 million people. Meanwhile, the number of international passengers fell 95% yoy to 167,900 people.

Sectors Predicted to be More Stressed at PPKM Level 4

Mandiri Capital Indonesia CEO Eddi Danusaputro also agreed that startups in the tourism, hotel and restaurant sectors, as well as entertainment, will be under pressure if PPKM level 4 is extended.

For example, startup Traveloka planted 10 thousand mangrove seedlings as an effort to restore tourism.

To coincide with World Mangrove Day, Traveloka collaborated with Sahabat Pulau Indonesia to launch a sustainable social initiative to plant 10,000 mangrove seedlings at Batu Berang Beach, Mertak Village, Mandalika, West Nusa Tenggara (NTB).

Startup Sectors that are Predicted to be more Pressed in Level PPKM 4

These initiatives range from planting mangrove seedlings to a two-year mangrove preservation process involving local communities.

The program is part of Traveloka’s commitment to realizing sustainable tourism in Indonesia and supporting the recovery of domestic tourism through the development of ecotourism and environmentally friendly and responsible tourism practices.

Culinary Startups Experience an Increase in Transactions

However, culinary startups such as Yummy Corp and Dailybox still recorded a surge in transactions in the middle of PPKM level 4. Yummy Corp, for example, recorded a seven-fold increase in transactions or 600% yoy.

The startup focuses on cloud kitchen services through YummyKitchen. It’s a restaurant service term based on cloud computing. It helps the consumers since they cannot do dine in the restaurants.

Products can only be ordered online. Yummy Corp CEO Mario Suntanu said that this achievement shows that the food delivery business has great potential to experience a surge or boom early. “This is because of the Covid-19 pandemic,” he said in a press statement, Monday (2/8).

Meanwhile, Dailybox posted a gross revenue growth of 700% yoy as of March. The number of outlets also increased by 300% less than a year and is targeted to double by the end of the year.

Startup Sectors that are Predicted to be more Pressed in Level PPKM 4

Driven by Digital Demand

Kelvin Subowo Co-Founder and CEO of DailyBox assessed that the achievements in the midst of the corona pandemic were driven by the demand from digital platforms.

“During the pandemic, 80% of turnover comes from food delivery services,” he said in a press release last week (22/7). Dailybox is part of The Daily Group which houses several F&B brands such as sushi to-go, Shirato and fresh drinks, Anytime. Dailybox has 30 menu options.

Both still recorded an increase in transactions amid restrictions on community activities due to PPKM level 4. The government will also announce the continuation of the policy this afternoon or evening.

Meanwhile, the Katadata Insight Center (KIC) research entitled ‘The Impact of the Covid-19 Pandemic on Digital Economy Actors in Indonesia’ in July 2020 showed that less than 50% of digital companies were able to survive for up to a year.