Why Merak Ferry Operators Demand Fare Hikes

6 hours ago 7

TEMPO.CO, Jakarta - The Merak branch of the National Association of River, Lake, and Cross-Border Transportation Entrepreneurs (Gapasdap) has urged the government to immediately adjust ferry crossing rates. The fare hike is deemed necessary to save the industry from a current sharp surge in various operational costs.

Chairperson of Gapasdap's Merak branch, Togar Napitupulu, explained that operators are increasingly pressured by rising component prices, which are heavily influenced by the fluctuation of the US dollar exchange rate against the rupiah. This increase directly impacts maintenance costs and the procurement of imported vessel components.

According to his calculations, Togar detailed that ship fuel prices have surged by up to 60 percent. In addition, spare parts prices have increased by around 30 to 40 percent, while docking and ship classification renewal costs have risen by approximately 20 percent.

"The current ferry crossing rates do not reflect the operational costs that companies have to bear at all. Yet, meeting these various cost components is mandatory to fulfill safety standards," Togar said in a statement in Serang, Banten, on Saturday, June 20, 2026, as quoted by Antara.

Based on a 2019 evaluation, according to Togar, the actual ferry crossing rates remain around 31.8 percent below the Cost of Goods Sold (COGS). However, this shortfall has not been addressed by the government to this day.

Amid the pressure of operational costs, ship operators are still required to meet all service, security, and safety standards in accordance with the mandate of Law Number 17 of 2008 concerning Shipping.

The companies' financial condition is also burdened by the decreasing frequency of voyages due to the addition of fleets on the same route, which limits each ship's opportunity to earn income from the number of trips.

In addition to urging the implementation of new rates in accordance with the COGS, Gapasdap proposed that the government provide incentives to reduce operational burdens. Some of these incentives include the elimination of Non-Tax State Revenue (PNBP), the removal of fuel tax, a reduction in port and classification fees, and the provision of low-interest credit facilities for the maritime sector, as applied in neighboring countries.

Read: Gradual Drop in Pertamax Fuel Prices Likely Through Year-End, Experts Say

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