ODOL Truck Policy Should Not Decrease the Competitiveness of the Industry

ODOL Truck Policy Should Not Decrease the Competitiveness of the Industry

PalmOilMagazine, JAKARTA – To minimize the damages in high way, the government through Ministry of Transportation planned to implement (over dimension and overloading or ODOL) policy in 2023 by hoping that it would not reduce the industrial competition.

Ministry of Transportation through General Directorate of Land Transportation keeps encouraging Indonesia to implement ODOL in 2023.

The policy was published for kinds of issues, such as, accident, bad roads, bridges, and ports. It costs expensive to improve too.

The trucks with ODOL could reduce the competiton in international level because they should not pass the border post. ODOL could cause damages in the vehicles and air pollution too.

Director of Road Transportation Infrastructure Ministry of Transportation, Mohamad Risal Wasal told that the policy refers to violation of Law No. 22 / 2009, article 277 saying that everyone that drives or rides vehicles, trailers to Indonesia, makes, assemblies, or modifies vehicles which cause the change of type, trailers, or customs operating in Indonesia and does not fulfill the type test obligation as written in article 50 paragraph (1) would be put in jail at least one (1) year or fined the most Rp 24.000.000,00 (twenty four million rupiah). Article 138 paragraph (3) mentioned that the public transportation and or products should be from general public transportation.

He also told that the process about ODOL trucks would be for 2017 to 2023. In 2020 about ODOL there had been meetings among Ministry of Transportation, Ministry of Public Work and People’s Housing (PWPH), Ministry of Industry, Indonesian Police, and industrial association by deciding to have free ODOL in 2023.

Free ODOL starts implementing in high way from Jakarta toBandung. It would be the same in the port of Merak - Bakauheni and Ketapang – Gilimanuk; and also the law enforcement based on the complete conditions in Article 277 in the Criminal Law.

In 2021 - 2022, it is planned to implement ODOL by making logistic network and developing e-Enforcement system, integration system, driver database – bank, and increasing the quality of roads and bridges.

“And do memorandum of understanding among Minister of Transportation, Minister of Industry, Minister of PWPH, Minister of Trade, Indonesian Police Chief. In the peak in 2023, Indonesia is hoped to realize fee ODOL,” he said.

He also mentioned, to realize the policy, the vehicles would be in normalization but it would be for over dimension and production before 2019. The normalization/cut off would be for karoseri companies/karoseri workshop.

“The vehicles to do normalization are those having or not having tests in a whole,” he told.

But for the planters, this is a challenge to implement the policy because palm oil plantations are in 22 provinces. 13 provinces master 95% of biggest producers in Indonesia, such as, Sumatera, Kalimantan (minus North Kalimantan) within crude palm oil production about 40,6 million tons in total.

In 2019-2020, there were issues about logistic transportation, such as, the publication or extension of general check to vehicles that 13 provinces should get the impact, the delay of normalization request which impacted to 13 provinces within the costs of normalization reaching Rp 2,1 billion.

“The transportation cost could be potential to increase twice or about Rp 32 billion per year,” Agung Wibowo of Indonesian Palm Oil Association (IPOA) told in the webinar held by Forum Jurnalis Sawit (FJS) within the theme “Kesiapan Perkebunan Menyiapkan Langkah langkah Strategis untuk Mewujudkan Program bebas Truk ODOL”, in Jakarta, Thursday (8/4/2021) that PalmOilMagazine joined

Agung also said that the other obstacles are fine of ticket, not allowed to pass through the high way for CPO trucks, and in 2021 the relaxation of Zero ODOL to the early of 2023 comes up. The policy would influence the vehicles to be renewed, reaching about 14.628 units/year (for the trucks more than 10 years) and the potential budget to spend would be Rp 10 billion. This policy would influence 1.625 companies.

But IPOA prepared to implement free ODOL trucks by some strategies, such as, preparing the numbers of vehicles and drives twice than now, preparing the additional cost to modify and operational, preparing the loading and unloading process not to stay in long line. “And preparing the wide road or class of road as same as the increasing trucks to operate,” he said. (T2)

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