'Same storm, different boats': the COVID-19 pandemic and its impact on Indonesian public companies

This study aims to evaluate the financial performance of Indonesian public companies before and during the COVID-19 pandemic. Data were collected from the Osiris database. Net income and return on assets (ROA) were used as proxies of financial performance, and the current and solvency ratios were also evaluated. Using the Wilcoxon signed-rank test and Pearson correlation test, this study found a significant difference in financial performance before and during the first year of the pandemic. The results show that 337 companies (68%) experienced a reduction in net income in 2020, while 115 companies (31%) recorded unchanged or even higher profits. Although this study found a statistical difference between the financial indicators before and during the pandemic, not all companies recorded a worse financial performance. Before the pandemic, those with substantial assets and stronger financial performance tended to experience only a minor profit reduction and higher net income in 2020. Copyright © 2022 Inderscience Enterprises Ltd.

Do social restriction policies responding to COVID-19 pandemic associated with economic growth?

The purpose of the study is to examine the statistical relationship between restriction and containment policies in respond to COVID-19 pandemic and the countries' economies. This study also maps countries based on their economic growth and the public mobilization restriction policies. The GDP growth was extracted from the economy prognosis from the International Monetary Fund. To determine the restriction policy level, the stringency index (SI) produced by the Oxford COVID-19 Government Response Tracker (OxCGRT) was used. The SI is between 0 – 100 in a range that is computed based on containment and closure policies, for instance, stay at home requirement and closure of public facilities, and public events. The SI used in this study is the average score of the first 3 months after the WHO declared COVID-19 as a pandemic (11 March 2020). Using the Spearman correlation test to investigate the relationship between GDP growth and restriction level in 166 countries, this study demonstrates a negative association between GDP growth and the SI. This means that countries that imposed stricter policies in the early COVID-19 pandemic tend to have higher GDP contraction. However, the correlation coefficient is relatively weak (-0.200), and thus, every government has the opportunity to reduce the unintended outcomes of restriction policies by providing economy and financial support packages for businesses, people, and other affected groups. © The Authors, published by EDP Sciences.

WHAT DETERMINES CO-OPERATIVES' PRODUCTIVITY IN INDONESIA? A-TWO STAGE ANALYSIS

This study empirically measures and analyzes determinants of productivity changes of the co-operatives across all 34 provinces in Indonesia over the 2015-2020 period using a-two stage approach. In the first stage, the study measures the productivity of the co-operatives using Data Envelopment Analysis (DEA). Meanwhile, in the second stage, the study utilizes a panel regression model to measure and analyze the determinants of productivity of the co-operatives in Indonesia. The study recorded that the co-operatives in Indonesia have experienced a 9.7% increase in their Total Factor Productivity (TFP), contributed mainly by the technical efficiency progress. Furthermore, the study found that the business volume has contributed to the improvement of the co-operatives' TFP. Meanwhile, the co-operatives' members, liquidity, and indebtedness are found to deteriorate the TFP growth. Profitability, however, is found to have an insignificant effect on TFP growth due to the non-profit orientation of the co-operatives. These findings suggest the need for cooperatives to diversify their business activities, supported by the adoption of relevant advanced technologies, particularly the use of online marketing. In addition, the co-operatives should improve their financial performances to maximize the use of capital by restricting liquidity and indebtedness. Finally, the government support to enhance financial and managerial aspects is essential to realize the co-operatives as the pillar of Indonesia's economy, as mandated by the 1945 Indonesian constitution.

The feasibility of a cold storage facility for fish in Aceh during the COVID-19 pandemic

The majority of catches by fishermen in Aceh, Indonesia are sold raw, directly to consumers, and in the local market. This contributes to the low price of fish and low income for the fishermen, and the COVID-19 outbreak has made this situation even worse. One solution could be the establishment of a cold storage business in the area. This study assessed the financial feasibility of a 200-ton cold storage business in Banda Aceh, the capital of Aceh province. Using secondary data collected from online sources, we applied the most common financial indicators used in feasibility studies, namely Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit-Cost Ratio (BCR). A sensitivity test was also performed to predict the feasibility of the cold storage business if the basic assumptions are changed. We found that cold storage in Banda Aceh is financially feasible as the NPV was positive, the IRR was higher than the interest rate (i.e., the discount rate), and the BCR was higher than 1. Besides, the sensitivity test also suggested that cold storage would still be feasible even if there were a 20% increase or decrease in storage capacity and project costs. © Published under licence by IOP Publishing Ltd.