NewsSSESSMENTS: Impact Of Large-scale Social Restrictions (PSBB) On Logistics In Indonesia

As of Friday, April 24, the Indonesian Government will restrict all passenger travel in an attempt to prevent citizens from participating in mudik (exodus) at the end of Ramadhan (fasting month) for the annual Eid Al-Fitr tradition to curb the spread of the Coronavirus. The government will temporarily ban all types of public and private transportations by sea, air, land, and railway from entering and leaving the region that has implemented large-scale social distancing (PSBB) and the red zones of COVID-19 outbreak. Further explained, all domestic and overseas flights, both commercial and chartered flights will be suspended until June 1. Likewise, the restriction on land transportation lasts until May 31, while for sea transportation will be suspended until June 8. However, the ban would not affect cargo transportation or vehicles serving special purposes, SSESSMENTS.COM noted.

Indonesia market players informed SSESSMENTS.COM that currently, no issue regarding delivery. Despite the travel restriction for passengers, some manufacturers in the Jabodetabek (Jakarta-Bogor-Depok-Tangerang-Bekasi) area stated that delivery is still normal. Likewise, no delivery issue in Solo and the surrounding area reported. ‘’The restriction does not affect the shipment or delivery activity as our supplier, the leading Indonesian polyolefins producer, already has approval and also the transportation banned doesn't apply on logistic of raw materials,  therefore everything is still smooth,’’ a converter based in Solo stated. 

However, one of the Indonesian traders confirmed that since last week, customers are asking to reschedule delivery as the company is only able to send one truck of material based on truck dispensation permit; hence, delivery of cargoes will be delayed and take a longer time. Further added, the highway entrance to Jakarta is congested due to identity and destination checking by police officers in order to make sure no passengers went for mudik. While from the import market, for shipment for Middle Eastern cargoes, so far the shipment is still on schedule.

*Mudik= the annual tradition of urban workers returning to their hometowns during Ramadhan and Eid holidays

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