Edi Hardum, Jakarta – Unrelenting rains in Jakarta, which have been continuing for weeks since the beginning of January, have caused businesses in the capital to lose as much as Rp 300 billion ($24.6 million) per day, the deputy chairman at the Indonesian Chamber of Commerce and Industry (Kadin) said on Monday.
Flooding in the capital affected the transportation of goods from Tanjung Priok Port, in North Jakarta, causing shipping delays and major losses for vendors. Even when the floods receded, damaged roads still halted the transfer of products.
"The buyers issued penalties on [distributors] because goods arrived behind schedule," Kadin deputy chairman Natsir Mansur said.
Inundated routes have also caused a backup for transporting cargo to the port – as a result, goods prepped for export missed their shipping schedules, causing further losses. "We had to spend extra money to pay for the leftover cargo at the port," Natsir said. "The letter of credit could not be disbursed."
According to Natsir, 40 percent of roads in the country have suffered some sort of damage due to flooding during the rainy season, and he suggested that Indonesia begin paving its roads with concrete rather than asphalt to mitigate further harm. "Asphalt gets easily damaged, especially in conditions with high precipitation like Indonesia," he said.
Natsir added that constructing roads with concrete would lead to a 25 percent decrease in the budget. "Roads covered with asphalt will be likely damaged in a year, while concrete lasts longer – approximately five years," he said.