Air-transport cost decreases as a result of the global oil price decrease

Following the decrease of the global oil price in the second quarter of 2020, the national freight forwarding companies in Indonesia are now able to offer a more strategic price for their service especially to agricultural companies that need to transport their products by air transport. This newly offered cargo price can especially be seen on the export of fruits such as mangosteen and salak to neighboring countries such as Malaysia and East Timor. As the cargo providers can offer a lower price on their service, the local exporters of the aforementioned fruits can also lower their overall offer prices to the buyers. In the short run, the exporters expect that this current situation can be used as an added incentive for the buyers to source the fruits from Indonesia by taking advantage of the lower transportation cost.