Operating Costs Soar, Ferry Operators Propose Tariff Hike

The National Association of River, Lake, and Ferry Transport Entrepreneurs (Gapasdap) is urging the government to immediately adjust ferry crossing tariffs to prevent the industry from collapsing under a sharp surge in various operational cost components. Chairman of the Gapasdap Merak Branch, Togar Napitupulu, explained that business operators are increasingly pressured by rising costs influenced by fluctuations in the US dollar exchange rate against the rupiah. The increase directly impacts the maintenance and procurement costs of imported ship components.

Togar detailed that the price of ship lubricating oil has currently soared by up to 60 percent. Additionally, spare parts prices have risen by around 30 to 40 percent, while docking and ship classification renewal costs have increased by approximately 20 percent.

“The current ferry crossing tariffs do not at all reflect the operational cost needs that companies must bear. In fact, these various cost components are mandatory requirements to meet safety standards,” he said in a written statement on Saturday (20/6/2026).

He explained that based on evaluation results in 2019, ferry crossing tariffs were actually still about 31.8 percent below the Cost of Goods Sold (HPP). However, this shortfall has not yet been realised by the government to date.

Amid the pressure of operational costs, ship operators are still required to meet all service, security, and safety standards as mandated by Law Number 17 of 2008 on Shipping. The financial condition of companies is further aggravated by the declining frequency of sailings due to the addition of fleets on the same routes. Consequently, the opportunity for each ship to earn income from the number of trips becomes increasingly limited.

Togar reminded that if the tariff adjustment is not immediately realised and ultimately triggers a decline in service quality or safety, the regulator must also share responsibility for that condition. Besides urging the implementation of new tariffs in line with the HPP, Gapasdap also proposes that the government provide stimulus to reduce operational burdens.

Several strategic proposals put forward include the elimination of Non-Tax State Revenue (PNBP), the removal of fuel tax, reduction of port and classification fees, and the provision of low-interest credit facilities for the maritime sector as implemented in neighbouring countries.