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Home BUSINESS NEWS FROM AROUND THE WORLD

Illegal levies on trucks raise Indonesia’s logistics costs: minister

by 198indonesianews_v2w0tn
July 17, 2025
in BUSINESS NEWS FROM AROUND THE WORLD
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Illegal levies on trucks raise Indonesia’s logistics costs: minister
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Jakarta (ANTARA) – Indonesia’s Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), has blamed widespread illegal levies on goods trucks as a key factor driving up logistics costs in the country.

He said each truck transporting goods can incur up to Rp100 million–Rp150 million (approximately US$6,000–9,000) annually due to extortion by unscrupulous parties.

“The data is clear… Why are logistics costs so high? Because there are so many illegal levies,” he said after a coordination meeting on Thursday addressing over-dimension and overloaded (ODOL) vehicles in Jakarta.

AHY stressed the need for firm action against these practices, which disproportionately burden truck drivers, especially those operating vehicles that exceed legal size and weight limits. The government, he added, has already mapped out key areas where such extortion occurs.

“If these illegal practices are stopped and the perpetrators prosecuted, logistics costs will significantly decline,” he said.

To address the issue, AHY convened a meeting with top law enforcement agencies, including the Attorney General’s Office and the National Police Traffic Corps.

“Firm action must be taken. It’s a criminal offense,” he said.

He also argued that with lower transportation costs, there would be no justification for using ODOL trucks, which are often seen as a cheaper option.

On the same occasion, Brigadier General Faizal, Director of Law Enforcement at the National Police Traffic Corps, said the police are actively cracking down on officers involved in extortion.

“We’re monitoring the situation closely and are taking action against any officers found to be involved,” he said.

This effort is part of the broader push to implement Indonesia’s long-delayed Zero ODOL policy.

Transportation Minister Dudy Purwagandhi noted that the Zero ODOL initiative has been in the works since 2017, but full enforcement has been delayed due to objections from truck operators and logistics firms.

Although stakeholders agreed to roll it out in 2023, the policy continues to face postponement. The legal basis for regulating vehicle dimensions and loads has existed since Law No. 22/2009 on Traffic and Road Transportation took effect 16 years ago.

Purwagandhi emphasized that accelerating the Zero ODOL policy before 2027 is essential to reduce traffic accidents and improve safety on highways.

Related news: Govt to form team to tackle illegal levies at tourist attractions

Related news: Eradicating illegal levies through Si Duli app

Reporter: Putu Indah Savitri, Aditya Eko Sigit Wicaksono
Editor: Anton Santoso
Copyright © ANTARA 2025



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Tags: costsIllegalIndonesiaslevieslogisticsministerraisetrucks
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