Provision of tax relaxation and stimulus is absolutely needed for logistics business, in helping this sector from further drop due to coronavirus (covid-19) outbreak, Indonesian Maritime, Transportation and Logistics Watch (IMLOW) has called.
Further, IMLOW General Secretary Achmad Ridwan Tentowi also urged the government to provide incentives to the business of warehousing and storage yard, two business units that absolutely support the logistics activities.
According to Ridwan, the business of logistics and cargo delivery, including its supporting business units of storage yards, warehousing, and vehicles parking area have been hit by this coronavirus outbreak.
“We also urged a relaxation of PBB (land and building taxes) until 75%,” Ridwan said in press release to Indonesia Shipping Gazette, on Monday, April 6.
He said, the incentives to logistics sector should be comprehensively provided to any aspects of this business since they are closely corelated each other.
Furthermore, amid the coronavirus outbreak, logistics business cashflow is disturbed by some invoice delay.
“The logistics business activities have dropped significantly due to this outbreak, resulting in lower cashflow. So, it is very reasonable to give incentive to any aspects of this sector, including trucking business, logistics and warehousing, storage yards, and vehicles parking business as well,” he said.
Achmad Ridwan explained that the existing logistics business has been interrupted by the disruption in production, distribution, and supply chain due to this coronavirus outbreak.
“We expect for the government good will to support this sector and to make all its related business segments run,” he said.
Earlier, Chairman of Indonesia Trucking Companies’ Association Aptrindo Gemilang Tarigan noted that amid the coronavirus (covid-19) outbreak, demand for trucks dropped up significantly, up to 60%.
“Demand from all sectors, except for consumer goods and medical, have dropped significantly. If this covid-19 outbreak will continue, demand will continue to down until 90%,” said Gemilang.
Gemilang also predicts that if this outbreak will take for over six months, it needs one to two years for logistics business to get recovery. In anticipating from a further drop, Aptrindo has done online coordination with government. “We have proposed for some incentives to logistics business players to help their business survival,” said Gemilang.
Besides those incentives, Aptrindo also urges the government to strictly guarantee that all cargo trucks are still permitted for operation amid the coronavirus outbreak.
“The cargo trucks should not be limited even if a region takes a local quarantine policy. What we should do is that all drivers should follow the standard of health check for prevention from probable spread and infection,” Gemilang explained.