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UNAIR economist offers solutions to the increasing demand for goods ahead of Eid

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UNAIR economist said ODOL does not inhibit logistics

UNAIR NEWS – Over Dimension and Overload (ODOL) truck/ freight car restriction regulation has got many responses. Various parties are worried that the price of primary needs will increase concerning logistic services. However, UNAIR Economy expert Rossanto Dwi Handoyo SE MSi PhD said that, on the contrary, ODOL regulation does not hinder logistics.

“The primary need crisis will not happen because of ODOL because the value per unit has been accounted for. For example, the distribution cost of 12 tonnes will impact to cooking oil price per liter, then consider the distribution cost is 500 rupiah per liter. It means that everything has been accounted for,” explained the Head of UNAIR’s Department of Economics.

Furthermore, Rossanto suggested increasing the truck unit quantity and obeying the allowed weight (JBI). “This is only a management issue, not necessarily connected to the increasing logistic cost that impacted product cost,” he emphasized.

The lecturer and the consultant in Financial Economics and International Trade also emphasized that ODOL models must be reduced. The Directorate General of Land Transportation made the transportation policy to fulfill the public interest.

UNAIR Economy Expert Rossanto Dwi Handoyo SE MSi PhD. (Photo: Personal Documentation)

The financial consultant mentioned that every company has a long-term economic pattern. These things must be considered by the government and businessmen ahead of Eid Holiday.

Order transportation services days ahead

“In the time leading up to fasting and Eid, market demand usually increases. It does not happen, automatically, this moment can be predicted days before. Let’s say every month 100 deliveries were needed. During the fast, it could become 150 deliveries,” he revealed.

The increasing demand does not mean an increase in cargo, Rossanto continued. Distribution planning must be planned well. When there is an increase in production, it will undoubtedly impact logistic distribution. The alternative is that business actors must rent truck services more than usual, not act greedy.

Give rewards for those who obey the regulation

Rossanto argued that other than accommodations for road and vehicle repairs, the government could also allocate award funds for someone who enforces the rules.

Supervision from warehouse exits

Rossanto said that before going to highways, supervision at the weighbridges or warehouse exits must be tightened.

Therefore, business actors have no reason to deliver goods more than capacity. “Believe that the cost for the supervision is far lower than the cost incurred for infrastructure repairs,” he said..

Author: Viradyah Lulut Santosa

Editor: Khefti Al Mawalia