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05 October 2022

Logistics Costs Increase 30% Due to Fuel Prices, Entrepreneurs Reveal Domino Effect

The Indonesian Logistics Association (ALI) predicts that the impact of rising fuel prices on the entire supply chain will be even higher for the next one month.

According to the General Chair of ALI Mahendra Rianto, the cost of moving goods will increase by around 30 percent due to fuel prices which will trigger a propagation effect on other operational costs. Starting from vehicle parts, to the goods transported themselves.


He explained that the increase in subsidized diesel prices will primarily have an impact on first and middle mile transportation services that transport raw materials and semi-finished goods, while the higher pertalite prices will have an impact on last mile transportation that brings goods to consumers' places.


Previously, freight forwarders had announced guidelines for increasing service rates following the increase in subsidized diesel fuel prices. The Indonesian Trucking Entrepreneurs Association (Aptrindo), based on the results of the Plenary Meeting on September 3 last, agreed to increase truck fares by 25 percent.

Souce: https://metro.tempo.co/read/1641958/anies-baswedan-berharap-program-sumur-resapan-diteruskan