JORR Toll Road Integration Can Save Logistics Costs

The government is planning to integrate the transaction systems in Jakarta Outer Ring Road (JORR) Toll Roads so that road users only need to pay once. This policy is expected to save logistics costs, as well as improve the service standards on toll roads.

According to Toll Road Regulator Agency Head Herry Trisaputra Zuna, as quoted by Liputan6.com, the strategy will reduce logistics costs, considering that 90% logistics transport is still done on land.

"Meanwhile, 72% of the total components of logistics costs consist of logistics transport costs, including road tolls," Herry said on Monday (June 2).

With the integration of the JORR toll roads, users only need to pay once, in contrast with the current condition in which they have to pay twice or thrice because the four toll roads, which run 76.43 kilometers in total, are still under different toll road business agencies (BUJTs).

However, the consequence of the integration is toll adjustment; class I cars will have to pay Rp15,000, while classes II and III cars must pay Rp22,500. Meanwhile, classes IV and V cars, which are four- and five-axle trucks, will still be imposed with the same toll, Rp30,000.

Although the JORR tolls will increase, long-distance users will get more benefit because they can save up to 70%. In fact, about 61% toll road users will actually pay less. Not to mention that the tolls for classes II, III, IV, and V cars will be reduced.

Toll road service to improve

JORR toll road integration is likely to improve the minimum service standards for toll road users. One of the benefits is that this strategy reduces the queuing line entering the roads.

"Five existing toll gates will be eliminated to reduce queuing in toll roads. Toll road integration is also meant to support national logistics system to improve efficiency and competitiveness," Public Works and Public Housing Minister Basuki Hadimuljono said, as quoted by Industribisnis.com, Wednesday (June 27).

He also explained that the policy is an early step towards multi-lane free flow (MLFF) toll system that is planned to come into effect in 2019.

Toll integration itself is nothing new. Previously, the same policy was implemented on Jakarta-Palimanan toll road in 2016, which was then expanded to also include East Brebes. In 2017, it was implemented on Jakarta-Tangerang-Merak toll roads, and in 2018, on Jagorawi toll roads and sections A, B, C of Semarang toll road in 2018.

The strategy should also bring a breath of fresh air to domestic logistics service providers. Logistics service will become more efficient and accessible to more business players as more providers will be able to ensure that their services are safe and on-time. One such example is SELOG.

SELOG as a subsidiary of PT Serasi Autoraya (SERA) that is experienced in providing trusted logistics services is readier than ever to give the best services. SELOG assures safe and on-time delivery to buyers without any damage to the goods.

In the end, logistics service customers will be benefited by the improved services due to the JORR toll road integration strategy. National competitiveness and growth will also improve.