- \n
- COVID-19 the biggest challenge
\nconfronting Indonesian small businesses in 2020.<\/li>\n - Established e-commerce and
\nonline delivery services helped businesses shift online quickly.<\/li>\n - Seventy-six per cent of surveyed Indonesian
\nsmall businesses expect to grow in 2021.<\/li>\n<\/ul>\n
\n
\n
\n <\/p>\nJAKARTA, INDONESIA – <\/b>Media OutReach<\/a>\u00a0–\u00a030
\nMarch 2021 – Although many small businesses in Indonesia
\nwere adversely impacted by COVID-19 in 2020, a strong focus on online sales and
\ncustomer satisfaction should lead to a rebound in small business activity in
\n2021, according to CPA Australia<\/a>.<\/p>\n![](\"https:\/\/release.media-outreach.com\/i\/137040\/CPA-AU.JPG\")
<\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nCPA Australia’s Asia-Pacific Small Business
\nSurvey, published today, shows the percentage of small businesses in Indonesia
\nthat grew dropped to a record low of 58 per cent in 2020, compared with 87 per
\ncent in 2019. During the year, 52 per cent of respondents sought external funds
\nfor business survival, the highest of the 11 Asia-Pacific markets surveyed.
\nIndonesian small businesses were the second most likely to identify COVID-19 as
\nthe biggest challenge to their business in 2020, at 68 per cent. <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nMr Herwan Ng, a member of CPA Australia’s
\nIndonesian Advisory Committee said, “Small businesses in Indonesia experienced
\na particularly tough 2020, with COVID-19 leading to extensive restrictions on
\nmovement. This disrupted regular business operations and significantly impacted
\ntheir revenue.” <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nHowever, business confidence is building, with
\n76 per cent expecting their businesses to grow in 2021, the third highest
\nresult of any region in the survey.<\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\n“Small businesses in Indonesia have a very
\nstrong focus on their customers. Customer satisfaction has been one of their most
\nimportant influences for them for the past three years. Customer-centric
\nstrategies allow small businesses to stay actively engaged with their customers
\neven in the face of the pandemic. This makes it more likely that they will
\nrebound in 2021,” Herwan said. <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nThe survey revealed that 53 per cent of small
\nbusinesses in Indonesia used social media to communicate with existing
\ncustomers, one of the highest of the markets surveyed. Further, more than half
\n(58 per cent) of small businesses in Indonesia earned more than ten per cent of
\ntheir revenue from online sales last year. Thirty-eight per cent of Indonesian
\nsmall businesses either began or increased their focus on online sales in
\nresponse to COVID-19.\u00a0 <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\n“Well-established e-commerce platforms and online
\ndelivery services enabled many businesses to shift their products or services
\nto online quickly, while maintaining a close relationship with their
\ncustomers,” Herwan said. <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nInvestment in technologies, such as mobile
\napps, is one way for Indonesian small businesses to rebound post-COVID. This is
\nreflected in 74 per cent of respondents reporting that their business
\ninvestment in technology in 2020 had improved their profitability, which was
\nmuch higher than the survey average of 48 per cent.<\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\n“To win over more customers, small businesses
\nshould continue to invest in technology, accelerate e-commerce adoption and
\nmaintain strong communication with customers through social media,” Herwan recommended.<\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nThe innovative culture of Indonesian small businesses
\nis reflected in 31 per cent of respondents stating that they will introduce a
\nnew product, process or service to Indonesia or the world, higher than the
\nsurvey average of 23 per cent.<\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nThe increasing use of technology means that
\nIndonesia’s small businesses should have a stronger focus on cybersecurity.
\nWhile 64 per cent expect to experience a cyberattack in 2021, only 43 per cent
\nhave reviewed their cybersecurity in the past six months.<\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\n“With government policies to develop the digital
\neconomy and encourage the adoption of payment technologies, we foresee that
\nIndonesian small businesses will stay competitive. Nonetheless, Indonesia’s
\nsmall businesses should pay attention to cybersecurity protections as they
\ndigitalise.” Herwan suggested.\u00a0 <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nCPA Australia recommends that Indonesian small
\nbusinesses consider the following actions to improve their recovery prospects:<\/p>\n
\n <\/p>\n- \n
- Seek advice from a trusted adviser, such as an accounting professional.<\/span><\/li>\n
- Focus on improving customer
\nsatisfaction.<\/li>\n- Increase use of social media, being
\nmindful of changes in customers’ behaviour.<\/li>\n- Pay attention to debt ratio and the
\ncost of external finance.<\/li>\n- Investing in up to date devices and
\nrelevant technologies.<\/li>\n- Enhance cybersecurity protections and
\nreview business’s IT systems regularly.<\/li>\n- Explore new opportunities to diversify
\nand expand.<\/li>\n<\/ul>\n - Focus on improving customer
- Seek advice from a trusted adviser, such as an accounting professional.<\/span><\/li>\n