BP Batam Postpones Container Tariff Adjustment at Port
The Batam Concession Agency (BP Batam) in the Riau Islands has temporarily postponed the implementation of adjusted container service tariffs at Batam Port to maintain stability in investment, industry, and trade within the special economic zone.
Deputy for Investment at BP Batam, Fary Francis, emphasised that this postponement does not mean the agency is ignoring port service modernisation. Rather, it is intended to ensure that future tariff policies are implemented in a more measurable and transparent manner, providing concrete added value for service users.
‘BP Batam wants to ensure that tariff modernisation runs in tandem with improved service quality. Every cost adjustment must be accountable, transparent, proportional, and have a direct impact on efficiency on the ground,’ Fary stated on Thursday.
According to Fary, Batam’s investment appeal is currently experiencing positive momentum that must be maintained. ‘Batam’s competitiveness is heavily influenced by the predictability and efficiency of logistics costs. BP Batam considers logistics costs one of the key variables in investment decisions,’ he said.
The cost burden borne by business operators does not just stem from a single official tariff component, but from the accumulation of terminal services, forwarding services, trucking, document processing, warehouse storage fees, and lateness charges such as demurrage and detention.
‘Therefore, our focus is not merely on the amount of the official tariff, but on how this cost structure is distributed from upstream to downstream. There must be no hidden, disproportionate charges that burden service users,’ Fary added.
This responsive policy from BP Batam has received a positive reaction from the local business community. The Chairman of the Indonesian Employers’ Association (Apindo) in Batam, Rafki Rasyid, assessed that the postponement proves the local government is sensitive to the real conditions faced by business operators, who are currently under global economic pressure ranging from exchange rate fluctuations to rising raw material and energy prices.
‘This postponement is a breath of fresh air that can ease the operational burden on businesses. We must safeguard Batam’s competitiveness together, one way being through logistics cost efficiency so that new investment realisation continues to grow,’ said Rafki.
Moving forward, BP Batam is committed to opening a more intensive dialogue space with terminal operators, legal and business advisory associations, forwarder companies, and service users. Future tariff policy evaluations will be based on accurate data and directly linked to measurable minimum service standards, or service level agreements.
Fary concluded, ‘Our overarching goal is to build a far more advanced and highly competitive Batam. The port must function as an engine driving investment, not become a source of cost uncertainty for the business world.’