Shortages, fuel price hike take toll on Indonesia's logistics sector

Tariffs for goods transportation are expected to increase by a minimum of 20 to 25 per cent, as fuel composes around 40 to 60 per cent of logistics costs. - Antara

JAKARTA (The Jakarta Post/Asia News Network): Supply chains across the country will face significant hurdles in sustaining operations as the fuel price hike ramps up logistics costs, raising the question of whether higher distribution prices would be transmitted to consumers.

According to Indonesian Logistics and Forwarders Association (ILFA) predictions, tariffs for goods transportation would increase by a minimum of 20 to 25 per cent, as fuel composes around 40 to 60 per cent of logistics costs.