DistantNews
Support us
🇮🇩 Indonesia /Economy & Trade

Incentives deemed crucial for realizing target of zero ODOL 2027

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • An Indonesian transportation observer stressed the need for incentives to achieve the zero over dimension overloading (ODOL) 2027 policy.
  • Incentives are crucial for logistics businesses to transition smoothly without disrupting goods distribution.
  • The policy requires a well-defined roadmap and adequate infrastructure, especially for electric logistics vehicles.

Achieving the zero over dimension overloading (ODOL) policy by 2027 requires significant incentives for logistics businesses, according to Deddy Herlambang, a transportation observer from the Strategic Transportation Initiative (Instran).

The zero ODOL policy has actually been discussed for several years.

— Deddy HerlambangTransportation observer from Instran, commenting on the long-standing discussion of the zero ODOL policy.

Herlambang stated that incentives are vital to encourage logistics players to adopt the zero ODOL policy gradually. "The zero ODOL policy has actually been discussed for several years," he said, emphasizing the need for measurable steps to ensure a smooth transition. He also highlighted the importance of a roadmap to align all stakeholders.

The government has previously pledged to support businesses in transitioning to zero ODOL without disrupting logistics operations. Beyond law enforcement, this support includes incentives for companies to replace non-compliant fleets with safety-standard vehicles. However, Herlambang noted that incentive distribution must consider infrastructure readiness, particularly for electric logistics vehicles, as charging stations remain limited in many areas.

The most ideal is the main logistics transport using rail transport as a multimodal role model with ships then transferring to rail and its feeder using trucks, but it is expensive due to double handling.

— Deddy HerlambangTransportation observer from Instran, describing an ideal multimodal logistics model.

He also proposed developing multimodal transportation, such as using ships and trains as primary transport with trucks as feeders, as a strategic option to reduce reliance on trucks. "The most ideal is the main logistics transport using rail transport as a multimodal role model with ships then transferring to rail and its feeder using trucks, but it is expensive due to double handling," he explained. To mitigate these high costs, Herlambang suggested government subsidies for logistics feeders or rail transport to make multimodal options more competitive.

For reducing expensive costs, the government's role is to provide subsidies for logistics feeders or subsidies for using rail transport.

— Deddy HerlambangTransportation observer from Instran, suggesting government subsidies for multimodal transport.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog