Bali’s APINDO Reports 10% Surge in Logistics Costs Due to Road Collapse

DENPASAR - The Indonesian Employers Association (APINDO) of Bali has reported a projected 10% increase in logistics costs following the collapse of a section of the national road on the Denpasar-Gilimanuk route.

"This has significantly impacted operational costs for businesses," said APINDO Bali Chairman I Nengah Nurlaba on Wednesday in Denpasar.

He expressed hope that the road repairs could be completed swiftly to mitigate further economic losses.

According to Nurlaba, the additional costs stem from higher fuel consumption, food expenses for transport crews, and the risk of compromised quality in logistics-especially in the distribution of food and essential goods. The disruption has forced longer travel routes and caused congestion on alternative roads, further complicating distribution.

A business owner from Jembrana Regency, who frequently uses the affected route, noted that signs of damage had already appeared around three weeks earlier. "The section that collapsed in Bajera had shown minor damage for about three weeks," he stated.

Beyond disrupting logistics between Bali and Java, the road collapse has also impacted inter-regency transportation within Bali itself. This includes the distribution of food items, ceremonial supplies, and construction materials-many of which are still sourced from Java. Products such as coconuts and ritual materials, often supplied from Jembrana to other parts of Bali, have also been affected.

In addition to logistical concerns, the collapse has disrupted land and sea travel for domestic tourists who rely on the Denpasar-Gilimanuk route.

Meanwhile, I Nyoman Yasmara, Head of the National Road Implementation Unit Region III of Bali Province, said that repairs on the collapsed road section in Bajera, Tabanan Regency, are expected to take about one month. During this period, traffic will be rerouted through Singaraja or northern Bali.

The collapse occurred after a drainage channel beneath the busy road gave way under the pressure of heavy rain on the afternoon of Monday, July 7. A large sinkhole subsequently opened up, rendering the road impassable to vehicles.

Source: https://www.antaranews.com