Indonesian Political, Business & Finance News

Why Business Owners Are Calling for Ferry Tariff Increases

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Business

The Merak branch of the National Association of River, Lake, and Ferry Transport Entrepreneurs (Gapasdap) is urging the government to immediately adjust ferry transport tariffs. The tariff increase is deemed necessary to save the industry from a sharp surge in various operational cost components.

DPC Gapasdap Merak Chairman Togar Napitupulu explained that business operators are increasingly pressured by rising prices of several components influenced by fluctuations in the US dollar exchange rate against the rupiah. This increase directly impacts the maintenance costs and procurement of imported ship components.

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

“The current ferry transport tariffs do not at all reflect the operational cost requirements that companies must bear. Yet these various cost components are mandatory requirements to meet safety standards,” Togar said in a statement in Serang, Banten, Saturday, 20 June 2026, as quoted from Antara.

Based on evaluation results from 2019, according to Togar, ferry transport tariffs were actually still around 31.8 percent below the Cost of Goods Production (HPP). However, this shortfall has not yet been realised by the government to date.

Amid the squeeze on 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 also aggravated by the declining frequency of sailings due to the addition of fleets on the same routes, making the opportunity for each ship to earn income from the number of trips increasingly limited.

Besides urging the implementation of new tariffs in line with HPP, Gapasdap also proposes that the government provide stimulus to reduce operational burdens. These stimulus measures include the elimination of Non-Tax State Revenue (PNBP), the abolition of fuel tax, reductions in port and classification fees, and the provision of low-interest credit facilities for the maritime sector as implemented in neighbouring countries.

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