ABRAHAM SANTOSA and IMPACT OF COVID19 PANDEMIC TO AGROBUSINESS SECTOR

 

COVID19 pandemic and THEIR IMPACT 

March 28, 2021 

Abraham Santosa

 

It has been almost 1 year, the world is covered by Coronavirus (Covid19), all negatively affected, many businesses have to close, many employees have to be housed, students have been unable to study normally, school schools are closed, shopping centers are limited in operating hours, the agricultural and mining sectors also do not escape the cruelty of this virus, the economy is almost paralyzed, what a disaster that was never expected before.

And as an entrepreneur in the field of agribusiness, I would like to share a paper on how the negative impact of corona virus on the agricultural and plantation sectors in the Southeast Asia region.

We exactly now that, this Pandemic is very threaten for Economic life in our country (Indonesia). So what we can do ?  This virus never stop attack inside our life. Many ways have been done to stop the spread of this virus but, it is very relaxing and the result is far from hopeful, the whole world is in mourning. Ongoing research has been conducted, championed, at a small cost, cooperation between countries, especially in Asia is very massif conducted to jointly block the spread of this virus. The entire business sector seems paralyzed, debt is not paying off, the financial world is busy looking for breakthroughs to rescue cashflow that is freefall, because there is no balanced feedback. It seems like the world has to reorganize, the way it thinks, the way it behaves and also the way it lives. The Covid19 pandemic will change the world.

From the many surveys, which is conducted by many surveyors, can be concluded that:

Impact on GDP via Reduced Agricultural Output

The spread of COVID-19 has significant economic impact on SEA especially that the percent GDP  shares  of  agriculture,  forestry, and fishery in the total GDP of the Southeast Asian countries are relatively high, particularly for countries like

Cambodia (20%),

Lao PDR (15%),

Timor-Leste (13%), and

Indonesia (13%).

The decrease in agricultural labor force due to COVID-19 could translate to the reduction of agriculture’s share in total GDP among Southeast Asian countries.

Overall, an estimated 1.4 percent drop in GDP (USD 3.76 billion) could be felt   by the whole of SEA (Table 2). Almost all SEA countries, except Brunei, could manifest more than one percent decline in the share of agriculture to total GDP.

References:

Glenn B. Gregorioa,b,d and Rico C. Ancog c,d

aInstitute of Crop Science, College of Agriculture and Food Science, University of the Philippines Los Baños, Philippines, gbgregorio@up.edu.ph; bNational Academy of Science and Technology, Philippines; cSchool of Environmental Science and Management, University of the Philippines Los Baños, Philippines, rcancog@up.edu.ph; dSoutheast Asian Regional Center for Graduate Study and Research in Agriculture, Laguna, Philippines