The COVID-19 test business is predicted to begin to dim in line with the enactment of the latest domestic travel regulations on 8th March.
Director of the Centre of Economics and Law Studies Bhima Yudhistira said there would be a sharp decline in the turnover of health businesses in the COVID-19 testing laboratory section, especially for those who only relied on income from COVID-19 tests.
“In fact, it is predicted that a few will go out of business because of the lack of people taking COVID-19 tests,” he said when contacted by Kompas.com on Thursday 10th March 2022.
According to Yudhistira, entrepreneurs engaged in the procurement of COVID-19 tests had predicted this because they understand very well that the COVID-19 pandemic would not last forever.
“Businesses understand that the COVID-19 test period will dim when the government lifts various obligations for travelling passengers taking tests as well as with the vaccination rate continuing to increase,” he added.
Entrepreneurs who understand this have been anticipating for a long time by reaping large profits when the COVID-19 pandemic was at its peak. They also strengthened their business strategy by collaborating with various institutions that still have the potential to require regular COVID-19 tests.
“Some lab businesses can survive with a strategy of collaboration between labs and institutions, such as companies whose employees need regular tests or collaboration with government institutions and state-owned enterprises. If the lab only relies on COVID-19 tests, it will certainly lose money,” he explained.
However, many entrepreneurs who are new to the COVID-19 test business have been disappointed with the new domestic travel conditions as they believed their business would continue.
“Meanwhile, there are still a lot of test kits in stock,” he said.