Oct 9, 2024
Batam-Singapore By Ferry
Batam-Singapore Ferry Ticket Prices Reduced After Travelers' Complaint
TEMPO.CO, Batam - The Riau Islands Provincial Government and Batam-Singapore ferry operators have agreed to lower ferry ticket prices by Rp30,000 for a round trip.
Junaidi, Head of the Riau Islands Transportation Agency, announced the decision following a meeting between the government and ferry operators on September 22-23, 2024. “The round-trip ticket fare is reduced by Rp30,000 starting today,” he stated on Tuesday, September 24, 2024.
He explained that the decision to reduce ticket prices by Rp30,000 was based on the operator's calculations. However, he noted that this is just the first phase of a broader review to determine the optimal pricing for Batam-Singapore ferry tickets.
“As Governor Ansar has mentioned, a survey will be conducted to identify the causes of the high ticket prices to determine the appropriate pricing for Batam-Singapore ferry tickets,” Junaidi added.
During the meetings, ferry operators cited factors such as the rising exchange rate, increased fuel costs, higher counter rental fees, and higher crew salaries as contributing to the high ticket prices.
Junaidi acknowledged their concerns but emphasized the need for a comprehensive survey to substantiate these claims.
He also complained about the unfinalized visa on arrival (VoA) regulations for foreign tourists. He noted that the flexibility of these regulations would significantly impact the number of ferry passengers.
Previously, Riau Islands Governor Ansar Ahmad planned to form an investigation team following the surge in Batam-Singapore ferry ticket prices. “Since the COVID-19 pandemic, round-trip ticket prices have risen from around Rp480,000 to Rp760,000. This has been complained about by many,” he said in a press release on Sunday, September 22, 2024.
Governor Ansar believed that reducing the ticket prices of the Batam-Singapore ferry would increase the ship's occupancy rates, thereby raising the number of foreign tourists visiting the Riau Islands.
Batam ferry prices as Indonesia probes possible price-fixing
JAKARTA/SINGAPORE - Singaporean manager Zheng Huang was shocked to find his round-trip ferry ticket to Indonesia's Batam island had soared to more than $70 over the past two years.
The 53-year-old, who used to visit the holiday spot every weekend for dining and shopping, now limits his trips to once or twice a month.
"That's the only way out now... Since you're there, you better make the most of your time," he told The Straits Times. His friends shared his frustration, but he lamented, "It's not within our control... we are held hostage."
'We are held hostage': Passengers from Singapore baffled by steep Batam ferry prices as Indonesia probes possible price-fixing
Mr Ridho Pamungkas, the commission's chief for northern Sumatra region, told The Straits Times that four operators are under investigation for alleged cartel practices, with their Singapore-based parent company yet to be summoned.
"The prices now are unreasonably high. It appears the businesses have agreed to fix prices at similar high values, so there's no competition between them," he said.
Mr Ridho noted that ferry ticket prices between Batam and Johor Baru are lower despite the longer two-hour journey. So, the Batam-Singapore fare is "an unhealthy sign".
The commission has faced "many obstacles" during their investigation over the past two years, such as obtaining information about the operators' expenses, he said.
"The ferry operators' management was uncooperative in providing data, making it difficult to gather evidence," he said, adding that the parent company being based in Singapore - and thus outside Indonesia's legal purview - only complicated matters.
The commission's head office in Jakarta held a focus group meeting with the Transportation Ministry, the Batam Development Authority (BP Batam), and the Riau Islands provincial administration on May 28 to discuss the high fares and possible collusion.
A follow-up meeting will be held in Batam on June 11, this time with the ferry operators in attendance. "We are committed to resolving this problem," Mr Ridho said.
According to Mr Ridho, around 200,000 travellers of various nationalities travel from Singapore to Batam each month.
BP Batam's port management director Dendi Gustinandar told The Straits Times that ferry ticket prices to non-domestic destinations had indeed increased post-pandemic.
Before the pandemic, ferry services between Batam and Singapore served 3.9 million passengers annually, including 1.9 million foreign tourists. Since then, ticket sales have recovered 60 per cent to what they had been before the pandemic.
Mr Dendi said operators have attributed the price hike to rising fuel costs and lower passenger numbers.
Ferry employees at Batam terminals declined to comment on the ticket prices, directing The Straits Times to "ask the boss". E-mails to ferry operators went unanswered.
Meanwhile, Singaporean travellers say higher ferry prices will harm Batam's tourism sector and deter people seeking affordable weekend getaways. Some plan to cut down their trips.
Mr Benson Toh, 47, a public service manager, said: "I find this ferry ride expensive because Batam is so near. If the price keeps increasing, I won't go there so frequently."
Housewife Nur Fazirah, 25, said: "It's overpriced… Last time it was easy for us to travel to Batam, but now the price is not worth it."
Singaporeans say they could understand why ferry operators were only trying to make up for their losses during the pandemic, but that did not justify the current prices.
Manager Norazani Shaiddin, 63, who visits her family in Batam every Friday, said: "For the price of $70 and additional $40 for VIP services, it's very expensive… one can fly to Phuket."
Ms Farlyane Johari, a 35-year-old special education teacher, said the price increase was too drastic, especially since there was no improvement in the quality of vessels or reduction in trip times, adding: "It's a lot to just go to Batam for one hour, then come back."
But many others said they will continue to visit the island.
Mr Rick Heng, 51, a security supervisor, considers it a "give and take" situation given the global rise in prices of goods and services.
Another traveller, 45-year-old finance controller Vincent Lin, said: "I will continue to travel to Batam by ferry even with the price increase as things in Batam are cheap, so it is still worth it."
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