Trucking Demand Drops 60%, Incentive for Logistics Sector Needed

Gemilang Tarigan. Aptrindo Chairman

Amid the coronavirus (covid-19) outbreak, demand for trucks dropped up to 60%, according to Indonesia Trucking Companies’ Association Aptrindo.

“Demand from all sectors, except for consumer goods and medical, have dropped significantly. If this covid-19 outbreak will continue, demand will touch at the lowest level until 10% only,” said Aptrindo Chairman Gemilang Tarigan.

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.

Gemilang names some incentives the government can provide to help logistics sectors including: loan interest rate cut until 50% and income tax (PPh 21) write off for 12 months. PPh 21 is tax of salary, wage, honorarium, and other personal income.

In addition, Gemilang also suggests for tax relaxation of PPh 23 (tax for capital, service, prize, etc) for 12 months and the write-off of PPh 25 (tax that is paid in instalment). Aptrindo also asks for a capital injection for a certain business, including in logistics sector.

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.

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