Page 112 - SUSTAINABILITY ISSUES & COVID-19

17 The Impact Of Covid-19 on The

Sustainability Performance of Indonesian

Companies (Empirical Study on Winner and

Loser Sectors Comparison)

Mohamed Omar Abdulrahim, Eko Ganis Sukoharsono, Erwin Saraswati, Imam Subekti

ABSTRACT : COVID-19 is spreading human suffering worldwide; that is what we should all be focused on. But we
are not doctors. We are interested in economic affairs, and more specifically, we are interested in the sustainability
performance in Indonesian companies– and COVID-19 is most definitely spreading economic and social suffering
worldwide. The virus may, in fact, be as contagious economically and socially as it is medically.

Indonesia potentially economic grows negative 0.4%, which is the worst-case scenario. Indonesia has mentioned in
the World Bank’s dire growth forecast, and the World Bank is projecting Indonesia’s economic growth this year will
be depressed at 2.1 per cent. This is due to the continued widespread distribution of Covid-19 both domestically and
abroad.

The key economic questions addressed in this article are: What the impact of Covid-19 on the sustainability performance
of Indonesian companies? What are the winning and losing sectors of the Indonesian economy due to this epidemic?
What are the mechanisms of economic contagion? And, above all, what can the Indonesian government do about it?

PURPOSE

This study purposed to analyses the impact of Covid-19 on the sustainability performance of Indonesian companies,
with the comparison of winner and loser sectors companies. Winner sectors such as agriculture, e-commerce, medical
supply and services, food processing and retail, personal and healthcare, also ICT. Potential losers’ sectors such as
aviation and maritime, tourism and leisure, automotive, construction and real estate, manufacturing, financial services,
education, oil and gas.

METHODOLOGY

The data were collected from the Indonesian Stock Exchange in the period 2019-2020. The sampling technique used is
purposive sampling. The technique analysis used is regression analysis and paired sample t-test.

Findings: From the results of the analysis and discussion, the following conclusions the affected sectors during the
COVID-19 pandemic are transportation, tourism, trade, health and other sectors. However, the economic sector
most affected by COVID-19 is the household sector; e-commerce will increase the pressure from the consumption
side because people are not active outside the home so that purchasing power also increases. Not only that, but the
household sector is also threatened with the loss of income because they cannot work to meet the needs of large and
vulnerable families in the informal sector. Sectors that winner was as the health sector, pharmaceuticals, electronic
trade.., etc. Because of uncertainty about vaccines, the Covid-19 period is unclear when it will be completed.

Therefore, the priority of the community will be on how to maintain family health so that health care products will
be the first choice compared to other consumption. Finally, there is the impact of Covid-19 on the sustainability
performance of Indonesian companies, and there is differences performance between winner and loser sectors
during these periods. It could be said that there are different effects of COVID-19 on the sustainability performance
of Indonesian companies. Whereas COVID-19 affects the sustainability performance positively through environmental
performance in all sectors, it also has a mixed effect (negative/positive) on the sustainability performance through
social and economic performance according to the type of sector.

International Conference on Sustainability 111
(5 Sustainability Practitioner Conference)
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