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Old 01-06-2024, 09:38 PM
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Re: Batam Info / Interest / Help Thread

Looks like the hi ferry prices getting attention from Indo authorities.
Complication due to ferry parent companies based in Sgp.

S’pore passengers unhappy over high Batam ferry prices as Indonesia probes possible price-fixing

Quote:
UPDATED JUN 01, 2024, 08:07 PM
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Indonesia’s independent business watchdog disclosed that it has launched a probe into potential collusion and price-fixing among ferry operators on the route.

The probe began in 2022 following complaints from passengers, and local media reported about the investigation on May 29.

On May 29, Indonesia’s Business Competition Supervisory Commission revealed that operators charged 800,000 rupiah (S$67) to 900,000 rupiah for a return ticket from January to June 2022, more than twice the usual price of 270,000 rupiah to 450,000 rupiah.

An ST check on the websites of ferry operators found that round-trip tickets from Singapore’s HarbourFront Centre to Indonesia’s Batam Centre International Ferry Terminal cost $34 to $60 in 2021 and $56 to $76 in 2024.

Mr Ridho Pamungkas, the commission’s chief for northern Sumatra region, told ST that four operators are under investigation for alleged cartel practices, with their Singapore-based parent companies yet to be summoned. Attempts by ST to contact the companies have been unsuccessful.

“The prices now are unreasonably high. It appears the businesses have agreed to fix prices at similar high values, so there is no competition between them,” he said.

Mr Ridho noted that ferry ticket prices between Batam and Johor Bahru are lower despite the longer two-hour journey, so the Batam-Singapore fare is “an unhealthy sign”.

The commission has faced “many obstacles” during its investigation over the past two years, such as obtaining information on the operators’ expenses, he said.

“The ferry operators’ management was uncooperative in providing data, making it difficult to gather evidence,” Mr Ridho said, adding that the parent companies 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, 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.
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