Restrictions on freight transport impact logistics costs
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Pembatasan angkutan barang berimbas ke biaya logistik
12 March 2025
By Ichsan Amin
Jakarta, ID – The issuance of a joint decree involving three agencies to limit goods transportation during the 2025 Eid al-Fitr homecoming and return period is anticipated to raise national logistics costs.
To manage the operation of goods transportation during the 2025 Eid al-Fitr homecoming period, the government has issued a joint decree involving three agencies: the Ministry of Transportation, the Ministry of Public Works, and the Traffic Corps of the Indonesian National Police.
This regulation is detailed in the joint decree of the Director General of Land Transportation No: KP-DRJD 1099 of 2025, the Director General of Sea Transportation No: HK.201/4/4/DJPL/2025, the Head of the Traffic Corps of the Indonesian National Police No: Kep/50/11/2025, and the Director General of Highways No: 05/PKS/Db/2025. It concerns Traffic and Crossing Arrangements During the 2025/1466 H Eid al-Fitr Homecoming and Return Period.
Budi Rahardjo, Head of the Public Communication and Information Bureau of the Transportation Ministry, stated that the issuance of the joint decree aims to ensure the smooth operation of transportation during the 2025 Eid al-Fitr period.
"This is to ensure safety, security, order, smooth traffic flow, and to optimise road and crossing traffic during the 2025 Eid al-Fitr homecoming and return period," stated Budi in an official release quoted in Jakarta, Tuesday (11/3/2025).
The regulation imposes restrictions on the operation of goods transportation, specifically targeting goods vehicles with three or more axles, vehicles with trailers, semi-trailers, and those transporting excavation, mining, and construction materials.
The restrictions will be enforced on both toll and non-toll roads from Monday, 24 March 2025 at 00:00 local time until Tuesday, 8 April 2025 at 24:00 local time.
Several toll road sections that will enforce goods transportation restrictions are situated in Lampung and South Sumatra Provinces, DKI Jakarta - Banten, DKI Jakarta, DKI Jakarta and West Java, West Java, West Java - Central Java, Central Java, and East Java.
Meanwhile, non-toll road sections that will enforce goods transportation restrictions are located in North Sumatra, Jambi and West Sumatra, Jambi - South Sumatra - Lampung, DKI Jakarta - Banten, DKI Jakarta - West Java - Bekasi - Cikampek - Pamanukan - Cirebon, West Java, West Java - Central Java: Cirebon - Brebes, Central Java, Central Java - East Java, Yogyakarta, East Java, Bali, and Central Kalimantan.
Meanwhile, vehicles transporting fuel (BBM/BBG), money deliveries, livestock and animal feed, fertilisers, disaster relief supplies, free homecoming and return motorcycles, and essential goods are exempt from these restrictions, provided they have the appropriate cargo documentation.
"Logistics is a priority; there are no bans or restrictions to ensure that supplies remain secure," emphasised Budi.
Besides regulating the operation of goods transportation, the joint decree also encompasses traffic and crossing arrangements through the one-way system, contra flow system, and odd-even system.
Hoping for incentives
Capt Subandi, Chairperson of the Indonesian National Importers Association (GINSI), asserted that the issuance of the joint decree involving three agencies should be complemented by various incentives. He hopes that the restrictions on goods transportation operations will be supported by incentives for cargo storage at ports.
"The government aims to avoid high logistics costs; however, the policy itself results in significant expenses," Subandi explained to Investor Daily.
He noted that the policy of restricting goods transportation operations benefits port and cargo terminal operators. "This is because they profit not only from the extended storage time of goods at the port, which increases costs, but also from the high progressive stacking fees imposed on these goods," he said.
Subandi added that the logistics business sector faces compromises every year due to the joint decision to regulate goods transportation during Eid al-Fitr.
"Every year, the industry consistently compromises and agrees to the restrictions. Therefore, it might be necessary to provide incentives or relaxation for cargo trucks operating in industrial areas during the restriction period, such as a 50% discount on additional fees," he concluded.
Separately, the Indonesian Truck Entrepreneurs Association (Aptrindo) expressed their objection to the restriction on goods transportation operations, which they consider excessively long, as it prohibits operations for 16 days.
"The decision to restrict goods transportation operations clearly disregards our input as business actors, concerning the impact of the prolonged restriction," said Gemilang Tarigan, Chairperson of the Central Executive Board of Aptrindo, in a release.
According to him, the restriction not only directly impacts vehicle owners but also affects various business actors, including drivers, loading and unloading workers, manufacturers, warehouses, shipping companies, and other parties involved in the logistics sector.
"The broad impact is on achieving 8% economic growth, as the delivery of industrial raw materials is hampered, export-import activities are disrupted, and eventually, contract cancellations with foreign parties occur, resulting in a failure to bring foreign exchange into the country," he stressed.
Therefore, Aptrindo requests that the duration of the restriction on goods transportation operations be adjusted to start from 27 March 2025 to 3 April 2025.
"If the proposal to change the duration of the restriction on goods transportation operations is not addressed by the relevant stakeholders, then we, all goods transportation business actors in the country, especially those serving activities at all ports in Indonesia, will go on strike starting 20 March 2025," he concluded.
