Indonesia has introduced a 5% increase in inter-provincial ferry transportation fares, impacting 27 routes nationwide as of November 1, 2024. This adjustment, targeting economy-class ferry transport both domestically and on international routes, follows a new directive from the Minister of Transportation, formalized in Decree No. 131 of 2024, amending previous regulations set in KM 61 of 2023.
Khoiri Soetomo, Chair of the Indonesian Association of River, Lake, and Ferry Transportation Entrepreneurs (Gapasdap), highlighted that the inter-provincial ferry transportation fare increase aims to bridge a gap in the cost of goods sold (COGS) for ferry operations.
The existing fares, he explained, lag by approximately 31.8% behind actual operational expenses. This figure emerged after a joint cost analysis by the Ministry of Transportation, PT ASDP Indonesia Ferry (Persero), Gapasdap, insurance firms Jasa Raharja and Jasa Raharja Putra, consumer representatives, and the Coordinating Ministry for Maritime and Investment Affairs, with the last review taking place in 2019.
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Quoted from Kompas, Khoiri emphasized, “The fare adjustment offers us some breathing room, although it still doesn’t entirely meet ferry operators’ financial needs.”
He noted that despite the increase, fares remain insufficient to cover rising operating costs, particularly given the changes since 2019 in key cost components. For instance, while previous fare calculations assumed an exchange rate of IDR 13,931 per USD, the rate has now climbed close to IDR 16,000. As nearly 70% of ferry service costs are influenced by the dollar, the increased expenses challenge operators in maintaining safety and comfort standards.
Additionally, Khoiri pointed out the impact of Ferizy, the online ticketing platform that adds fees to ticket purchases. These additional costs could ideally go toward operators to enhance service quality, rather than benefiting external parties not directly involved in ferry transport.
He further addressed concerns that the fare increase would significantly affect goods prices, such as rice. According to Khoiri, the cost increase is minimal. For instance, a 25-ton truckload of rice priced at IDR 10,000 per kg would see an uptick of just IDR 3.1 per kg, or 0.031%, highlighting that the fare adjustment has limited economic impact on essential goods.
