Analyzing the Impact of the Covid-19 Pandemic on the Indonesian Briquette Industry Performance

Abstract

This study intends to analyze the impact of COVID-19 on the briquette industry in Indonesia and provide recommendations for mitigating problems that arise. To the best of the authors' knowledge, this kind of topic has not been studied yet. The research method used a questionnaire to briquette business actors and interviews with the management of the Indonesian Coconut Charcoal Entrepreneurs Association (PERPAKI). Respondents received 24 questions encompassing seven dimensions according to their situation. The results of the questionnaire were then analyzed using descriptive qualitative statistics. The study results show that 29% of business operators experienced contract cancellations, 38% experienced temporary closings, and 59% experienced decreased sales. In addition, 97% of business operators experience supply chain disruption due to scarcity of raw materials; the farmers prefer to sell fresh coconuts for export rather than processing them domestically. Lower domestic prices for Copra caused it as the main derivative product and higher prices for fresh Coconut and Coconut Shell Charcoal (CSC) for export due to increased global market demand. For the mitigation and recovery of briquette companies from the impact of the Covid-19 pandemic, the authors recommend three strategic agendas. In the short term, focus on solving shortages of raw materials and improving the Company's cash flow. In the medium term, focus on pioneering the development of supply chains and the national briquette business ecosystem. The last is long-term, focus on improving product quality and the performance of the national briquette industry to make it better and more efficient in a sustainable manner.