Minister of Transportation: Transportation and Logistics Sector Most Affected by Covid-19

Minister of Transportation (Menhub) Budi Karya Sumadi revealed that transportation and logistics are the sectors most affected by the Covid-19 pandemic.

The Minister of Transportation said that the Covid-19 pandemic brought gloomy times to almost all lines of business. The global outbreak has had the deepest impact on the transportation and logistics sectors.

"The pandemic has resulted in a gloomy period for a number of businesses, including transportation. Even transportation and logistics are the sectors that are experiencing the most problems," said Budi Karya in the national webinar of the Masyarakat Transportasi Indonesia (MTI), Tuesday (11/8/2020).

Budi explained, in the transportation business there was a decrease in turnover starting from 30%. Even in the aviation sector, revenue decreased by more than 50% due to the Covid-19 pandemic. "This certainly creates a threat of bankruptcy," said Budi Karya.

Budi explained, in the first quarter of 2020, the airline service industry was on a moderate trend, then declined sharply in the second quarter of 2020. With the initiation of a new habitual adaptation period, the Minister of Transportation hopes that the growth rate of the aviation service industry can begin to recover.

He explained that the disruption of the transportation system had a shocking effect on the logistics sector. This is because the logistics sector is based on transportation. Therefore, with the layoffs of most flight operations, logistics movements are stagnated and also have an effect on skyrocketing costs borne by logistics operators. "All of this has disrupted the logistics ecosystem," said Budi.

The decline in the transportation and logistics sector, explained the Minister of Transportation, resulted in corrected economic growth to minus 5.32%. This is because transportation is very vital in supporting the economic cycle. In addition, said Budi, the deterioration of transportation had a chain effect related to everything. "But the President has given instructions to carry out movements (modes of transportation) more intensively. Say on the railways, we have run a number of long-distance trains," said the Minister of Transportation. (Source: