Anticipating economic risks: Middle ground in ODOL controversy

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Bisnis Indonesia - Antisipasi risiko ekonomi: Jalan tengah polemik ODOL

3 March 2025

By Anitana Widyana Puspa, Aziz Rahadyan, and Rahmad Fauzan

The government's firmness on over dimension and overloading (ODOL) vehicles is facing challenges. Several business actors are offering various options as a middle ground, ranging from incentives to improving supporting facilities for logistics transport vehicles.

Business actors who have opposed the ODOL policy for the past decade argue that the regulation increases logistics costs. In line with this, the business community has proposed a series of actions that the government should take as a solution or middle ground so that the Zero ODOL policy does not burden economic actors.

The Deputy Chairperson of the Indonesian Logistics and Forwarders Association (ILFA), Iman Gandi, said that one tactical action needed to accompany the Zero ODOL policy is incentives and fleet rejuvenation facilities.

Specifically, he suggested that the government could provide subsidies or special credit schemes to help business actors replace ODOL trucks with vehicles that comply with regulations.

This is possible with the support of various ministries, including state financial institutions and the Directorate General of Taxes, so that incentives can reach the affected sectors.

Finally, he believes the government needs to ensure supporting infrastructure, such as modern weighbridges and digital monitoring systems, so that this policy can run well.

"In addition, a transparent monitoring mechanism is needed that does not disadvantage business actors," he said.

In the same vein, the Chairperson of the Indonesian Truck Entrepreneurs Association (Aptrindo), Gemilang Tarigan, said that to reduce the negative impact of the Zero ODOL policy on the economy and supply chain, several solutions could be considered.

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