The Transportation Sector will not Recover Until Next Year

Transportation has become one of the business sectors hardest hit by the Covid-19 pandemic. This is reflected in the realization of growth in the transportation sector in the second quarter of 2020.

The transportation sector is the business sector that has experienced the deepest contraction of the 17 business sectors recorded by the Central Statistics Agency (BPS). It was recorded that in the period April – July 2020, the transportation and warehousing sector experienced minus 30.84 percent. This was mainly due to the restrictive policies adopted in almost all regions of Indonesia during this period. As a result, all transportation lines experienced growth contraction.

Restore the Transportation Sector, Minister of Transportation: It is not enough to rely on the central government. Hopes for the recovery of the transportation sector have begun to emerge since the flow of community movements with various health protocols was reopened. However, Transportation Observer, Djoko Setijowarno, projects that the growth rate of the transportation sector will not move quickly until the end of this year.

According to him, this was due to the low number of official trips for non-central civil servants (PNS). In fact, based on the data he has, civil servant travel is the main contributor to public transportation passengers. “For example, 42 percent of them are official trips, if from the center it might be okay. But from the regions, the budget is running low. For trains, it’s the same,” he told Kompas.com, Friday (7/8/2020). Furthermore, Djoko said, the same thing would be experienced by passengers with the purpose of travel. The high number of Covid-19 spreads has resulted in people discouraging their intention to travel for tourist purposes. “Business trips are still running, but not much. Business is only 12 percent,” he said.

Therefore, the transportation sector is projected to grow rapidly in 2021. “If next year it starts to subside, there are adjustments, the budget starts to return high, maybe it can. But until the end of the year I can’t guarantee it can return to normal,” said Djoko. For information, BPS noted, all transportation lines experienced negative growth in the second quarter of 2020. Air transportation contracted to minus 80.23 percent, rail transportation minus 63.75 percent, land transportation minus 17.65 percent, and sea transportation minus 17.48 percent. Read next

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Summary

Transportation has become one of the business sectors hardest hit by the Covid-19 pandemic. This is reflected in the realization of growth in the transportation sector in the second quarter of 2020.

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