In the face of a suspected monopoly on ferry ticket prices between Batam and Singapore, Indonesia’s Competition Supervisory Commission (KPPU) has encountered non-cooperation from two out of four international ferry operators under investigation. The inquiry, which began in 2022 after significant price hikes during the COVID-19 pandemic, has revealed potential cartel activities influencing the regional tourism and travel industry.
The inquiry began following a report from the Batam City Chamber of Commerce in 2022, after ticket prices surged from an initial IDR 260,000 (approximately SGD 21.84) to IDR 700,000 (approximately SGD 58.80) for a round trip. The KPPU’s focus remains on Batam Fast, Horizon, Sindo Ferry, and Majestic Fast Ferry.
Ridho Pamungkas, head of KPPU’s regional office, noted that two of the operators have been less cooperative, complicating the investigation efforts. The lack of transparency in price-setting factors, other than operational costs and supply-demand dynamics, poses a major obstacle.
Photo: Detik.com (2024)
Discussions with the Singapore Competition and Consumer Commission (CCCS) are underway to address these price hikes, which have also drawn complaints from potential tourists from Singapore.
The KPPU, while lacking direct enforcement power, can issue administrative sanctions and fines ranging from a minimum of IDR 1 billion (approximately SGD 84,000), calculated based on sales profits if the allegations are confirmed.
The Indonesian Ministry of Transportation might regulate a ceiling price for these ferry tickets, ensuring that operators can still profit while protecting consumers from excessive fares.
Read More: Batam Business Leaders Call for Reduction in Batam-Singapore Ferry Ticket Prices
KPPU is pressing for regulatory changes and advising the government to reduce ticket prices without harming business operators, reflecting the need for a balanced approach to competition and pricing in essential transport services.
The ongoing investigation and potential regulation could lead to more reasonable ferry ticket prices, enhancing the accessibility and appeal of Batam as a tourist destination. This could positively impact regional tourism, benefiting both economies.
Indonesia’s competition watchdog is investigating a potential price cartel among ferry operators between Batam and Singapore, with significant implications for regional tourism and cross-border travel.
