Indonesian Logistics Sector Faces Challenges During Nataru 2025/2026

Significant Volume Decline Reported

The Indonesian logistics sector experienced a substantial decline in shipping volume during the 2025/2026 New Year holiday period. According to the Indonesian Logistics Association (ALI), the 20-25% decrease was directly attributed to government-imposed restrictions on truck movements. These restrictions particularly affected vehicles with three or more axles, those towing trailers, and trucks carrying mining, excavation, and construction materials.

Key Factors Contributing to Volume Reduction

Two primary factors contributed to this significant decline in shipping volume. First, delays in deliveries to international ports disrupted the logistics chain, causing ripple effects throughout the supply chain. Second, businesses faced additional costs associated with transit through Singapore when attempting to circumvent the restrictions, making it economically unfeasible to maintain regular shipping schedules.

Shift in Business Strategy

Mahendra Rianto, Chairman of ALI, explained that unlike in 2024 when logistics companies continued their operations despite similar restrictions, businesses in 2025 opted to delay their shipments until the restrictions were lifted. This change in strategy was primarily driven by the high additional costs associated with non-compliance and alternative routing. The decision to wait out the restrictions rather than absorb extra costs reflects the sector's adaptive response to regulatory measures.

Implications for the Logistics Industry

This volume decline during a critical period highlights the sensitivity of the logistics sector to regulatory changes. The impact of such restrictions extends beyond mere operational inconvenience, affecting businesses' bottom lines and potentially influencing broader economic activity. As the industry navigates these challenges, stakeholders may need to explore more flexible operational strategies or engage in dialogue with regulators to mitigate future disruptions.