INDONESIA: The Riau Islands Provincial Government and ferry operators have agreed to reduce round-trip ferry ticket prices for the Batam-Singapore route by IDR30,000 (US$2), effective from 24 September 2024.
This decision followed discussions between the government and ferry operators held from 22-23 September 2024.
Junaidi, Head of the Riau Islands Transportation Agency, confirmed the fare reduction in a statement on 24 September.
He explained that the IDR30,000 (US$2) price cut resulted from ferry operators’ calculations and marked the first phase of a broader review of Batam-Singapore ferry pricing.
This initial reduction aims to establish a more suitable pricing structure for ferry services between the two destinations.
Junaidi referred to remarks by Governor Ansar Ahmad, who emphasized the importance of conducting a detailed survey to understand the root causes of high ferry ticket prices.
“As Governor Ansar has mentioned, a survey will be conducted to identify the causes of the high ticket prices to determine the appropriate pricing for Batam-Singapore ferry tickets,” Junaidi added.
One factor contributing to the increase has been the rise in seaport taxes, particularly in Batam, where the tax increased from IDR65,000 (US$4.3) to IDR100,000 (US$6.62).
Additionally, ferry operators cited rising exchange rates, higher fuel costs, increased counter rental fees, and crew salary hikes as key reasons for the surge in prices.
While ferry operators have raised concerns about these pressures, Junaidi stressed that a comprehensive survey would be essential to verify the claims and guide future pricing decisions.
He noted that further steps would be taken once the survey is completed.
Junaidi also addressed ongoing delays in finalizing visa-on-arrival (VoA) regulations for foreign tourists, stating that simplifying the VoA process could significantly impact ferry passenger numbers.
He believes that easing these regulations would encourage more foreign tourists to travel between Batam and Singapore, potentially increasing ferry occupancy rates.
The issue of high ferry ticket prices has been a long-standing concern for local authorities.
Governor Ansar Ahmad had previously announced plans to form an investigation team to address the significant price hikes that have occurred since the COVID-19 pandemic.
The fares for the Batam-Singapore route experienced a sharp increase, with prices doubling after the pandemic.
One-way ticket prices, which were previously between IDR250,000 (US$16.55) and IDR350,000 (US$23.17), surged to IDR500,000 (US$33.1) to IDR550,000 (US$36.4).
In a press release issued on 23 September 2024, Governor Ansar further detailed the fare hikes, stating that round-trip ticket prices, which were once around IDR480,000 (US$31.77), had risen to approximately IDR760,000 (US$50.3).
Governor Ansar highlighted the importance of reducing ferry ticket prices to boost passenger occupancy rates and attract more foreign tourists, aligning with broader efforts to revitalize tourism in the region, which was heavily impacted by the pandemic.
The recent IDR30,000 (US$2) price reduction is seen as a first step in adjusting ferry prices to more affordable levels, with further reviews and negotiations expected to ensure sustainable and fair pricing for the Batam-Singapore route.
