Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Businesses frustrated that rain still brings Jakarta to a halt – Economy – Full Analysis.
ntense rainfall that triggered flooding in several parts of Jakarta in recent weeks has significantly disrupted economic activity, with transportation and logistics among the sectors hit hardest by severe congestion and delays.
Cyril Raoul “Chico” Hakim, a special staffer to the Jakarta governor, said no finalized official figures were available yet from the National Disaster Mitigation Agency (BNPB) or the provincial administration regarding the total economic losses from this month’s floods, as assessments were still ongoing.
“However, the significant impact can already be seen from disrupted mobility, declining business activity and damage to infrastructure,” he told The Jakarta Post on Wednesday.
Chico noted that manufacturing activities in flood-prone areas, such as East Jakarta and North Jakarta, had been affected by prolonged waterlogging.
The Indonesian Logistics and Forwarders Association (ALFI) said flooding had severely disrupted access to ports and warehouses around Tanjung Priok Port, with inundation also occurring at two of the international terminals, forcing temporary shutdowns.
“Operations were halted for about half a day during the first flooding. Some international port areas were inundated,” ALFI chairman Adil Karim, told the Post on Thursday.
The flooding on Jan. 12 coincided with high tides and tidal flooding, a recurring issue in North Jakarta, while prolonged heavy rain overwhelmed the drainage system.