Indonesia prepares logistics incentives for zero ODOL policy

The Indonesian government is preparing an incentive scheme for logistics businesses to mitigate the impact of the ‘zero over dimension over loading’ (ODOL) policy. The initiative aims to manage potential increases in transportation costs and commodity prices resulting from stricter enforcement.

Rudi Irawan, Director of Traffic at the Directorate General of Land Transportation, stated that the government will first identify the specific characteristics of recipients to determine the most effective form of stimulus. The policy is projected to potentially increase logistics costs by 3.3% and exert inflationary pressure between 0.02% and 0.14% during its initial implementation phase.