ALFI Agrees with Emergency PPKM Extension, but Calls for KADIN’s Proposal Adoption

Indonesia Logistics and Forwarders’ Association (ALFI/ILFA) agrees with and supports the government policy to extend emergency public activity restriction or Emergency PPKM until July 25.

The Indonesian government has officially extended this Emergency PPKM as announced by President Joko Widodo yesterday. The restrictions on economic activity, meanwhile, will be relaxed on July 26 if the average of daily Covid-19 positive cases shows an improvement.

President Joko Widodo or Jokowi explained the decision was taken following the result of evaluation of the previous Covid curbs that was started on July 3, saying that it was unavoidable. “This (policy) must be taken by the government though it is hard,” said Jokowi in a press conference held virtually on Tuesday, July 20.

The Emergency PPKM is done to suppress the number of Covid transmission to reduce the number people flocking the hospitals for treatment. “So the hospitals won’t collapse due to overcapacity of Covid-19 patients. And health services for other critical patients will keep ongoing,” said Jokowi. He also claimed that during the policy implementation, there was a downtrend in additional cases and hospital bed occupancy.

The emergency PPKM had run for two weeks from July 3 to 20, since the surge of Coronavirus cases which saw over 20,000 additional daily cases.

The emergency PPKM policies are implemented across Java-Bali and other provinces with high Coronavirus infections. The government bans the people to transport without vaccine certificate and negative Covid letter.

This mobility restriction also affects businesses in non-essential and critical sectors. They are forced to implement the ‘work from home’ policy for all of their workers, while the businesses in essential sector may work at the office with a maximum of 50 percent capacity.

In response to this, ALFI Chairperson Yukki Nugrahawan Hanafi, said agreement and support. He said, this (emergency PPKM) a joint effort and solution to suppress the transmission of Covid-19 and maintain the national economy activity.

“As business players in logistics sector, we absolutely understand with this government policy to extend Emergency PPKM until July 25. We cannot avoid this option even though it is very difficult for us,” said Yukki in press statement this morning, Wednesday, July 21.

He said, ALFI will always urge all forwarder and logistics companies in Indonesia to support the extension of the Emergency PPKM policy with a commitment to comply with health protocols in every business activity.

“ALFI is ready to support this. We never tire of conveying to businesses in the logistics and transportation sector in Indonesia to always be committed to health protocols,” he explained.

Yukki underlined that, in the view of business actors, emergency PPKM would certainly have a major impact on the economy and the business. It will create a domino effect, the domestic market will totally slow down.

“But, we all need to be calm, not restless and panic buying,” he reminded.

Calls for KADIN Proposal Adoption

ALFI absolutely backs up the proposal from Indonesia Chamber of Commerce and Industry (KADIN) relating the implementation of the emergency PPKM.

Yukki said that the KADIN’s proposal is a real condition of the current business after the pandemic hit the business in the last 18 months.

Earlier, KADIN Chairperson Arsjad Rasjid said economic business players fully support the government’s policies to reduce the pace of the pandemic. But, KADIN proposes several inputs to the government:

First, allow manufacturing companies in the critical and essential sectors as well as their supporting industries and export-oriented industries, to continue operating with a maximum capacity of 100% of operational employees and 25% of operational support employees, if they have been vaccinated twice for all their employees. In this case, companies must continue to strictly follow health protocols and report their activities regularly to the Ministry of Industry (Kemenperin).

Second, allow the non-essential sector of manufacturing industry and its supporting industries to continue operating with a maximum capacity of 50% operational employees and 10% operational support employees and continue to follow strict health protocols. In this case, companies must continue to strictly follow health protocols and report their activities regularly to the Ministry of Industry (Kemenperin).

Third, government can design a consolidated fiscal policy to increase people’s purchasing power, either through social protection programs that are executed quickly and economic incentives for the business.

Fourth, the government also needs to harmonize health, economic and social policies in an integrated manner and carry out one-stop communication, so as to create certainty for the community.

Fifth, the government needs to design a productive stimulus for the business, in addition to health and social assistance. This is necessary as employers also have to repay loans, operational, and salaries.

To strengthen this step, the government must also pay strong attention to a number of policies, such as the implementation of POJK 11/POJK.03/2020 on National Economic Stimulus as a Countercyclical Policy for the Impact of the 2019 Coronavirus Disease Spread.

Sixth, accelerate vaccination in industrial and trade areas, by providing public health facilities such as P-Care Vaccination by BPJS

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