Indonesian Political, Business & Finance News

Batam's ferry operators back on job

| Source: JP

Batam's ferry operators back on job

Fadli, The Jakarta Post/Batam

Some 100 ferries operating in the Riau Islands resumed operations
on Friday after being halted by a strike a day earlier.

The ferries resumed services after state oil and gas company
PT Pertamina bowed to ferry operators' demand that they be
allowed to buy subsidized fuel at Pertamina's depot near the
Sekupang and Telago Punggur ports on Batam.

Pertamina had earlier told the ferry operators to purchase
fuel at Sambu island, several kilometers from Batam island, at
unsubsidized prices. The ferry operators refused because of the
distance to Sambu and the price of the fuel, said Asmadi, the
chairman of the People's Sailing Association and the coordinator
of the Commercial Sailing Association at Sekupang port.

He said that under the new deal, ferry operators could buy
diesel fuel at the subsidized price of Rp 4,250 a liter.
Unsubsidized diesel fuel costs Rp 6,000 a liter.

Purchasing the fuel at the Pertamina depot on Batam will also
be much more convenient for the ferry operators because they will
not have to obtain delivery orders before getting the fuel.

"The procedure is much more complicated if we buy fuel from
Pertamina on Sambu island," said Asmadi.

As the ferries resumed their operations, traffic at the
Sekupang and Telago Punggur ports returned to normal. The ports
were busy on Friday as people traveled between Batam and the
surrounding islands.

A spokesman for Pertamina in Batam, Sri Sudarso, said the
company bowed to the ferry operators' demand in order to help
traffic at the ports return to normal.

The spokesman also said the company had asked the Batam
Transportation Office to oversee the fuel purchases in order to
prevent any fuel hoarding.

Demand for diesel fuel in Batam reaches about 800 tons a
month.

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