Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia

Research Article

Public Mission of Local Companies in the COVID-19 Era: Challenges and Obstacles

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  • @INPROCEEDINGS{10.4108/eai.5-8-2020.2301124,
        author={Dwiyanto  Indiahono},
        title={Public Mission of Local Companies in the COVID-19 Era: Challenges and Obstacles},
        proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020,  5 - 6 August 2020, Purwokerto, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2020},
        month={10},
        keywords={local companies public interest subsidies local water companies},
        doi={10.4108/eai.5-8-2020.2301124}
    }
    
  • Dwiyanto Indiahono
    Year: 2020
    Public Mission of Local Companies in the COVID-19 Era: Challenges and Obstacles
    ICBAE
    EAI
    DOI: 10.4108/eai.5-8-2020.2301124
Dwiyanto Indiahono1,*
  • 1: Public Administration Department, Faculty of Social and Political Sciences, University of Jenderal Soedirman, Kampus FISIP Unsoed Jl. HR. Bunyamin 993 Purwokerto – Indonesia
*Contact email: dwiyanto.indiahono@unsoed.ac.id

Abstract

The COVID-19 pandemic has affected the economic life of citizens. The state, through state and local companies, seeks to assume the function of the state in the public sector. This research was conducted with qualitative research methods with secondary data, and data analysis used content analysis and interactive data techniques. Exemption from drinking water bills by several local water companies has shown the role of local companies as true public sector providers. However, the provision of subsidies to certain groups has caused polemics on the interpretation of public affairs in local companies. Local companies are demanded not only to be pro-poor but also to the affected public. The obstacles regarding the limitations of subsidies can be explained due to the limited ability of local companies to provide subsidies, as well as the difficulty in identifying people affected by COVID-19. The provision of subsidies by local companies will increase public trust and loyalty to local companies.