A Picture of Family Businesses in Indonesia During the COVID-19 Pandemic

A Picture of Family Businesses in Indonesia During the COVID-19 Pandemic

Hotniar Siringoringo, E. S. Margianti, Sudaryanto Sudaryanto
Copyright: © 2023 |Pages: 11
DOI: 10.4018/978-1-6684-7394-8.ch012
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Abstract

This chapter explores family business conditions during the COVID-19 pandemic. To fulfill this goal, data from Biro Pusat Statistik (Statistics Indonesia) and national/international mass media were used. More than 95% of business in Indonesia are family business. Family businesses based on scale vary from home industry, micro, small, medium, to the big corporations. Family businesses play an essential role in driving Indonesia's economy. Statistically, 80% of Indonesia's GNP is contributed by family businesses. In 2019 family businesses contributed to a GDP of 53.28%.
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Family Business Scale And Impact Of Covid-19 Pandemic

According to PWC (2014), more than 95% of business in Indonesia is family business. These family businesses based on scale vary from home industry, micro, small, medium up to the big corporation. Table 1 shows the percentage of each scale in 2014 (PWC, 2014) based on yearly revenue (billions USD). They are doing business in manufacture (50%), transportation (13%), general (13%), construction (7%), and others (5%). We can conclude from the table that family businesses with yearly revenue less than 5 billion USD are 3%.

Table 1.
Composition of the family business in Indonesia based on revenue in 2014
NoRevenue (USD)PercentageNoRevenue (USD)Percentage
15-10 billion27%451-100 billion20%
211-20 billion7%5101-500 billion23%
321-50 billion3%6>500 billion17%

Source: PWC (2014).

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