The rising Value-Added Tax (VAT) to 12% on luxury goods has sparked widespread discussion, but public transportation users can breathe a sigh of relief. The government has confirmed that ferry services, as part of public transportation, remain exempt from this tax increase.
ASDP Indonesia Ferry, a state-owned ferry operator, reassured the public that ferry service rates would not be impacted by the 12% VAT policy. Corporate Secretary Shelvy Arifin emphasized the company’s commitment to maintaining affordable transportation for Indonesians.
“We want to assure the public that there will be no fare increases for ferry services, as these fall under public transportation services exempt from VAT according to regulations. This policy reflects the government’s commitment to supporting the people,” Shelvy said in an official statement on Thursday, January 9.
The VAT exemption is rooted in Article 4A, Paragraph 3, Letter J of Law No. 8 of 1983, updated through the Tax Harmonization Law (UU HPP). Shelvy explained that this legal framework highlights the importance of sea transportation services, including ferry crossings, in ensuring nationwide mobility and connectivity.
“This regulation underscores that sea transportation services, including ferry crossings, are essential public facilities critical to supporting national mobility and connectivity,” she added.
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The decision to keep ferry services VAT-free is expected to have a significant impact, particularly in improving access to transportation and logistics across Indonesia. By maintaining stable fares, the policy encourages smoother inter-regional travel for personal needs and economic activities.
Shelvy noted that the exemption aligns with ASDP’s broader mission to support regional development and public mobility. “With stable rates, communities can more easily travel and engage in economic activities. This strengthens ASDP’s role in advancing economic growth and equitable development,” she explained.
Despite the VAT exemption, ASDP continues to fulfill its tax obligations, such as the 1.2% income tax under PPh Article 15, based on gross revenue from sea transportation services. “We ensure that all rates comply with prevailing regulations, balancing affordability for the public and contributions to national revenue,” Shelvy added.
ASDP currently operates 37 ports and serves more than 300 ferry routes nationwide, supported by a fleet of over 200 vessels. Of these routes, approximately 66% are pioneering services that connect remote areas and play a vital role in advancing equitable development across the archipelago.
This government policy not only underscores its focus on supporting public mobility but also highlights the strategic importance of sea transportation in Indonesia’s development narrative. By keeping ferry services accessible, the government aims to sustain economic activities and improve the quality of life for people across the nation.
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