Logistics Sector Soars amid 'Emergency PPKM' Restriction

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Petir Garda Bhwana

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  • Workers are sorting consumer goods at the JD ID Warehouse, Marunda, Bekasi Regency, Friday, December 11, 2020. The last Harbolnas in 2020 falls on Saturday, December 12, 2020. Tempo/Tony Hartawan

    Workers are sorting consumer goods at the JD ID Warehouse, Marunda, Bekasi Regency, Friday, December 11, 2020. The last Harbolnas in 2020 falls on Saturday, December 12, 2020. Tempo/Tony Hartawan

    TEMPO.CO, Jakarta - The recent ‘mini quarantine’ enforced by the Indonesian government across Java and Bali touted as emergency PPKM (public activity restriction) has not put every industry at a standstill as business growth continues to be logged by the logistics sector. 

    Chairperson of the Indonesian Logistics and Forwarder Association (ALFI), Yukki Nugrahawan Hanafi, on July 7 said the logistics companies in the delivery service sector are able to grow between 25-30 percent. Hanafi argues that the temporary closure of shopping malls have shifted consumers to rely on logistical services. 

    Citing Bisnis.com, “This is backed by the amount of food deliveries along with deliveries for daily needs and goods,” said Hanafi.

    He explained that companies in this sector are far more prepared to adapt to the strict restrictions introduced in the emergency PPKM, while also enforcing health protocols for its field couriers and supporting instruments. 

    This was echoed by INDEF’s head of innovation and digital center, Nailul Huda, who explained that the restriction on economic activities basically brings a positive effect for online activities such as e-commerce and supporting industries such as logistics.

    “The growth of the logistics business can grow 1.5-2 folds, especially for digital logistics startups that collaborate with numerous e-commerce platforms and social commerce,” said Huda.

    This is backed by Bank Indonesia that logges a total electronic transactions of Rp201 trillion by the end of 2020, which is a 38.42 percent growth in a year. This year that number is forecasted to reach Rp266 trillion.

    Read also: Businesses Violating Emergency PPKM to Face Sanctions

    BISNIS.COM