Considering the announcement of the tightening of the Implementation of Micro-Scale Community Activity Restrictions (PPKM) starting June 22, 2021, PT Matahari Department Store Tbk (“Matahari” or “the Company”; stock code: “LPPF”) has received a number of inquiries regarding the impact of the policy and the worsening pandemic situation. The Company would like to emphasize that Matahari will fully comply with and support all policies required to maintain the health and safety of its customers and employees. In order to uphold the principle of equality in disclosure of information, we hereby provide additional information for stakeholders. Indonesia is currently recording a record high number of cases, and we would like to emphasize that we will do our part to manage this situation including temporary store closures in affected areas if necessary.
Based on information as of June 28, 2021, we have 100 stores affected by reduced operating hours, an increase of 26 stores since the restrictions began. Of the 100 stores, the Java region, including Greater Jakarta, is most impacted. A total of 71 stores are in Java, 19 stores in Sumatra, 4 stores in Kalimantan, and others outside the region. The 100 stores represent 67% of Matahari's total stores and 71% of total sales. These stores are affected by reduced operating hours, with some stores having to close at 6 p.m. As additional information, around 30% of the total stores are affected by restrictions on mall visits or road traffic diversions. Meanwhile, on the other hand, restrictions on the capacity of food and beverage retailers that reduce visits to malls have impacted 42% of the total stores.
The full impact of this policy remains to be seen, as it is understood that the arrangement has only been in place for the first full week. This is a dynamic situation that reflects concerns about the spread of the delta variant in the communities Matahari serves. Therefore, it may be premature to state the specific financial impact of each aspect of the arrangement at this time. However, Matahari management remains fully prepared to comply with the steps required by the relevant authorities through our “SAFE SHOPPING – 5 MATAHARI COMMITMENTS”. These commitments include:
- Providing special cashiers for families and the elderly,
- Prioritize medical workers,
- Providing primary products and baby needs in easily accessible locations,
- Thoroughly clean the outlets, use masks, and provide sanitiser for all customers who come, and
- Ensure there is a safe distance system in the outlet.
We will continue to play our part in safeguarding public health and employee safety and this will continue to be our priority.
