According To Kadin, The Transportation Sector Also Needs Incentives Due To COVID-19

Deputy Chairman of Kadin for Transportation, Carmelita Hartoto. (Photo: Kadin)

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) revealed that the world of national transportation needs incentives because it has been hit by the corona virus pandemic or COVID-19.

Deputy Chairman of the Indonesian Chamber of Commerce and Industry for Transportation, Carmelita Hartoto, admitted that she was concerned about Indonesia's condition along with the corona virus pandemic and hoped that this difficult time would end soon.

"For this reason, the corona virus attack in the business world must be faced with strong solidarity among others. Public health must be our priority at this time. But of course after that, we need to find ways so that business can continue to run positively in the future," said Carmelita in her written statement quoted on Wednesday, March 18.

In general, explained Carmelita, the current condition has hit the business world and hit the investment side of the transportation sector due to a decrease in the volume of cargo and people in air, sea and land transportation.

"This blow will be felt enough for some time to come. For this reason, business actors are asking for incentives to stimulate business again," said Carmelita.

In the land transportation sector, he continued, incentives can be provided in the form of fiscal, postponing tax collection for six months, which includes granting PPh 21 facilities borne by the government (DTP), relaxation of PPh 22 import exemptions, PPh 25 reduction, accelerated relaxation of VAT refunds.

Apart from that, banking support is also needed by providing competitive interest rates and long tenors, as well as credit relaxation for loans for the main production tools.

Meanwhile in the shipping sector, incentives are also needed, such as; rescheduling of bank loan payments, low loan discount rates and granting of grace period for loan repayments, eliminating taxes on fuel, as well as competitive fuel prices with a stable supply.

"Likewise at the port, it is hoped that there will be a discount on port costs and container handling. All stakeholders should join hands at this time for efficiency," said Carmelita.

He added that in the air transport sector, it is also hoped that there will be a stimulus in the form of temporary suspension of the implementation and payment of components.

In addition, the air transportation sector also needs support from low interest rates to state banks to support the smooth running of the aviation business.

"The business world in the transportation sector needs incentives like this because it will bring business activity again after our economy is hit by the corona virus," he said.

Not only that, business actors, according to Carmelita, also asked for this pandemic to be taken seriously. For example, by minimizing the potential for transmission.

"Unlike last Monday, when suddenly public transportation was reduced without notification. Eventually there was a buildup of passengers. This is what needs attention. If necessary, social distancing is campaigned more aggressively," he explained.