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View all search resultsIndonesia's sea transportation suffers Rp 12.2t losses in H1
A Transportation Ministry webinar on Tuesday presented the findings of a study on the economic impacts of the travel ban during this year's Idul Fitri holiday season on the sea transportation sector.
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study by the 10 November Institute of Technology (ITS) in Surabaya shows that Indonesia's sea transportation sector has recorded Rp 12.2 trillion (US$821.9 million) in output losses in the first half of the year, due primarily to the drop in passenger demand as a result of government restrictions imposed to contain COVID-19 transmission.
The ITS study evaluated the impacts on the sector from the Transportation Ministry’s ban on mudik (exodus) from April 24 to June 1 during the Idul Fitri holiday season. The ministry imposed the travel ban as part of the government's coronavirus response in an attempt to halt the disease's spread.
Among the losses to the sector that the study attributed to the mudik ban are an estimated loss of Rp 862 billion for state-owned shipping company PT Pelni and combined losses of Rp 44 billion for inter-island ferry companies. These include ferries operating the Merak-Bakauheni route between the provinces of Banten and Lampung, as well as those operating the Ketapang-Gilimanuk route between East Java and Bali.
“We’ve seen a huge decline in passengers during the pandemic, especially at three main ferry ports and routes. On the Merak-Bakauheni route, the number of passengers dropped around 80 to 95 percent,” ITS rector Mochamad Ashari said on Tuesday, during a webinar held by the ministry.
The decline in economic activities in the transportation industry had contributed to the 5.32 percent year-on-year (yoy) contraction in gross domestic product (GDP), according to Statistics Indonesia (BPS).
BPS data for the second quarter also show that the transportation and warehousing sector contracted 30.84 percent yoy, with the sea transportation sector suffering a 17.48 percent yoy decline.
During the webinar, ITS researcher Ardi Adji said that the contraction in the sea transportation sector in turn caused a ripple effect in local economies, with the provincial economy of Bali suffering the worst blow.
