Draft Presidential Regulation on Disincentives for Businesses Violating ODOL Rules

The government is formulating a disincentive scheme for business actors who violate the zero Over Dimension Over Loading (“ODOL”) policy. The regulation will be finalized in conjunction with the harmonization of Draft Presidential Regulation (RPerpres”) on the Strengthening of National Logistics.

“The disincentive scheme is included in the Draft Presidential Regulation regarding the Strengthening of National Logistics,” said Hermin Esti, Assistant Deputy for Land and Railway Connectivity at the Coordinating Ministry for Infrastructure and Regional Development (“Kemenko IPK”), in an interview with Hukumonline.

Kemenko IPK, together with relevant ministries/agencies, is still formulating a mechanism for the provisions of disincentive. Currently, the government is focusing on developing a proper and digitalized logistics ecosystem, so that the applicable regulations will no longer place the burden solely on heavy vehicle drivers but on all parties involved.

“If the system works well, any violations will automatically be subject to sanctions. Everything will eventually be fully digitalized,” said Esti.

Kemenko IPK is targeting the completion of harmonization process for Rperpres on the Strengthening of National Logistics by the end of October 2025, with the implementation of zero ODOL policy set for 1 January 2027. In addition to disincentives, the government also plans to introduce incentives that will be calculated by the Ministry of Finance.

“The calculation process will still take some time, as there are many aspects that need to be refined before an effective incentive and disincentive scheme can be established,” said Esti.