TEMPO.CO, Jakarta - Logistics service providers will increase the tariff during the Ramadan and Eid al-Fitr holiday this year.

Indonesian Truck Operators Association (Aptrindo) deputy chairman Kyatmaja Lookman said that truck operators had to increase the tariff due to limited radial tire stocks. The increasing tariff was also caused by local tire price hike.

“This is an issue faced by transporters, while demands on logistics are currently high,” Kyatmaja said on Sunday, May 14, 2017.

Kyatmaja added that the cost to provide logistics service has increased by at least seven percent or about Rp500,000 per trip from Jakarta to Surabaya.
Kyatmaja revealed that logistics cost usually increases during the the peak time due to an increase in volume. However, Kyatmaja went on, this year the increase in tariff was caused by limited tire supplies.

Tire is the second most expensive components after fuel. For a single trip from Jakarta to Surabaya, truck drivers spend at least Rp1 million for fuel. In addition, local tire is available for Rp1 million, while imported tire is 50 percent cheaper.

Tire price started to increase when imported radial truck tire supplies could no longer be found in the market, as the government enforced Trade Minister Regulation No.77/M/9DAG/PER/11/2016 on the requirement of tire imports this year.

BISNIS.COM