E-COMMERCE platforms continue to
take a hit from the social restrictions imposed by Indonesia because of the
Covid-19 pandemic, reports the Jakarta
Post.
The enforcement has hit a variety
of cities and doesn't have a clear future of an endpoint, making e-commerce and
logistic firms worried about their delivery systems.
"The problem is there are
different types of restrictions in each area, which confuse our third-party logistics
partners. Thus, communication with our customers is critical when the situation
is very unpredictable," said Tokopedia
vice president Rudy Dalimunthe.
Mr Dalimunthe said Tokopedia has
received a 40 per cent increase in complaints since the start of the pandemic
in January. Since the pandemic has greatly hindered shipping deliveries, the
two are clearly correlated.
The pandemic has also caused most
consumers to shop online, forcing a more significant burden on companies like
Tokopedia. Indonesia's e-commerce sector is expected to see a 50 per cent
growth valued at US$35 billion.
Each regional, city, and
provincial administration in Indonesia have different levels of restrictions
that are colour-coded in green, yellow, orange, and red.
"Jakarta's policy is
different from Central Java. Local governments are implementing restrictions in
certain areas that cause disruptions to delivery services," said Mr
Dalimunthe.
Other than the confusion over
local restrictions, consumers are shipping perishable goods, which are
susceptible to delays.
"We have seen a seismic
change in consumer behaviour in our same-day intercity logistics service. The
food category has jumped 45 percentage points since March and is still
rising," said Paxel co-founder Zaldy Masita.
At the same time, major airlines
have to ground airlines, which is terrible for Paxel since they rely heavily on
air cargo. Indonesia's domestic and international air freight volume dropped 39
per cent below the monthly average in March due to aircraft grounding.
"Roadblocks and air cargo
disruptions have affected our deliveries, and we have seen a three-fold jump in
queries and complaints between March and May," said Mr Masita.
Although the complaints are an
adverse concern, both Paxel and Tokopedia feel fortunate over the increase in
customers.
"I think we could expect
more demand for intercity same-day shipping services, with more second-tier
cities as destinations. We are also still looking at more food product
deliveries," said Mr Masita.
Source : HKSG.
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