State-Owned Enterprises has long been investing in sustainability through the Partnership and Community Development Program (PKBL) and Corporate Social Responsibility (CSR). SOEs already has a forum and management ready to include this crisis support as a priority activity, mainly in ensuring that the common people's efforts, especially MSMEs, do not collapse because of this outbreak's impact on the economic sector is fatal. Almost all businessmen are gasping for breath, especially MSME entrepreneurs.

PT Sarinah (Pesero) has contributed more than one billion rupiahs in 2019 until the first quarter of 2020. This contribution is relatively small, but the resources provided by Sarinah are a mix of SOEs synergy, and if combined, it will be quite significant.

Since its commencement, Sarinah meant to shelter and become a storefront for MSME products. Thus Sarinah has a unique position because it also acts as a channel for beneficiaries. Hundreds of SME retailers at Sarinah are the affected groups that share the same roof as Sarinah. Then, the pulse of their efforts immediately felt by Sarinah. One form of Sarinah's longstanding support for MSMEs is not implementing a rental scheme but through profit sharing. Leasing a place for MSMEs generally has a massive impact on their cash flow, which they need for working capital, marketing and operational costs.

Sarinah's PKBL and CSR activities focused on partnership programs with MSMEs such as capital support, training, marketing, exhibitions, and market promotion and facilities. For CSR Sarinah has carried out support in the education sector, restoration and construction of houses of worship, separate humanitarian assistance for natural disasters, transportation for homecoming, assistance to orphans, duafha people, health assistance and others.

Ending the middle of the first year of 2020, the COVID-19 outbreak has not subsided. However, Sarinah and BUMN colleagues in the Ministry of SOEs' direction and policies were given the honour of carrying out the mandate of the people's suffering and not only in the business sector.

When the outbreak was first detected in early March 2020, the Ministry of BUMN was the pioneer in providing an Emergency Hospital at the Kemayoran Athlete House which established, prepared, and equipped quickly. Also carried out the management of PPE procurement, medical devices (medical equipment) both from within and outside the country. All BUMNs are all out to support the prevention, treatment and mitigation of COVID-19 beyond the call of business duty.

If this outbreak is prolonged, it will become a total crisis, mainly due to macroeconomic factors such as increasing unemployment, which will impact consumers' purchasing power. Then negative economic growth has an impact on decreasing state income. Investments and operations stalled or delayed, especially in non-primary industries such as tourism, electronics, automotive, and the lifestyle industry.

Realizing this, the new normal strategy and the provisions outlined by the government, Sarinah will carry out a business strategy transformation by promoting more use of the digital market or e-commerce, strategic partnerships with BUMN partners and re-branding to make it more appealing or attractive to young people, trendsetters and community of local product lovers in the creative economy and retail sectors.

For further information, contact:

Fetty Kwartati

Director of PT Sarinah (Persero)

Jl. MH Thamrin 11

Central Jakarta 10350

Phone: (021) 31923008 Ext. 490

Email: div.corsec@sarinah.co.id