NLE, Covid-19 Vaccine the Two Key Programs Encouraging Fast Logistics Recovery: ALFI

There are two key policies and programs from government that will encourage fast recovery in logistics business sector. The two programs are efforts to find coronavirus (covid-19) vaccines and the implementation of National Logistics Ecosystem, according to Indonesia Logistics and Forwarders’ Association (ALFI) top executives.

ALFI General Secretary Akbar Johan explained that the government seriousness to end this pandemic is seen in any intensive efforts initiated by Minister of State-Owned Enterprises (SOEs) Erick Thohir. To stop this pandemic through provision of its vaccine will become a very good news for business sector within the country, including logistics business.

In addition to effort to end this pandemic through vaccine availability, the commitment of any government institutions and ministries to implement the NLE is also a key step to build the national logistics competitiveness.

These two aspects, according to Akbar, remain key solution for business within the pandemic, saying they (vaccine availability and NLE implementation) will trigger economy recovery and logistics efficiency.

“ALFI appreciates any effort by Minister of SOEs to accelerate the vaccine readiness. We also appreciate the commitment of any government institution and ministries to implement the NLE. We have supported to adopt this system (NLE) from the beginning,” Akbar said in press statement this afternoon, Wednesday, September 30.

He said, any efforts taken by Erick Thohir to end this pandemic will create certainty in business.

Earlier, Erick had stated that as many as 30 million doses of vaccine would be ready by the end of this year. This is good news for community and business players.

Erick earlier said that the vaccine would be provided under a cooperation with China’s pharmacy company Sinovac. The clinic trial for this vaccine has been passed the third phase. Wisnu also saluted with the national pharmacy company PT Bio Farma (Persero) of its commitment to produce more than 250 million doses of vaccine per annum.

“Logistics business players expect all parties to support any government steps and programs to end this pandemic,” said Akbar.

Obstacles

Akbar also warned some obstacles that would affect the logistics business in Indonesia during this pandemic outbreak. Referring to the ALFI survey result, Akbar said that many logistics companies will face some constraints if this pandemic will not end soon.

The survey of Indonesia Logistics and Forwarders’ Association (ALFI/ILFA) released today, Thursday, September 24, explained that 77.7% of the respondents admitted that they have not been benefitted with the incentives yet. They never accepted the credit facilities nor relaxation yet. Meanwhile, 9.2% of the respondents admitted that they have become the beneficiaries of the incentives of credit facilities and relaxation. The remained respondents admitted that the incentives of interest rate reduction were still in the process.

ALFI has conducted a survey on the impact of the pandemic to the logistics sectors that involved as many as 1,256 respondents. The survey took place for one month from early August.

Around 12.6% of the respondents say that they will be able to survive for the next three months, 35.4% for the next three to six months and, 51.9% of the respondent say they are able to survive for six to 12 months.

Around 95.6% of the respondents say that their business income decreased due to the pandemic, while only 4.4% say that their income was steady and increasing.

According to the survey, around 52.9% of the respondents affirmed that they faced obstacles in operation during the pandemic, while 47.1% of the respondents admitted of facing no obstacles.

They got the obstacles from some process, including 41.5% from the sea port and airport process, 21.1% from land roads, and 37.4% relates to permit and additional cost.

“Those must be taken as fucus for solution by related parties, the authorities of sea ports and airports, in particular,” Akbar said.

Akbar expects to overcome these obstacles in parallel with effort to end this pandemic. “Whenever the vaccine has been ready and any logistics obstacles have been overcome, we can do fast recovery in economy and logistics,” he said.

 

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