The Indonesian Competition Commission (KPPU) is set to investigate allegations of a cartel influencing ferry ticket prices in Batam, with a planned visit in August to gather further evidence.

As allegations of price-fixing among ferry operators in Batam emerge, the KPPU plans a detailed investigation to ensure competitive practices are upheld in the region. The authority’s move follows concerns over sudden hikes in international ferry ticket prices.

The KPPU, led by Regional Office I Head Ridho Pamungkas, is intensifying its scrutiny with a follow-up visit to Batam in August, although specific dates are yet to be confirmed. This visit aims to collect further evidence and engage with relevant stakeholders.

Initial investigations into the alleged cartel began in 2022, focusing on whether four major ferry companies had colluded to set higher prices, particularly during the post-COVID-19 recovery phase.

Two of the implicated companies have cited significant financial losses during the COVID-19 pandemic as justification for the price increases, a claim the KPPU finds implausible given the current normalized conditions.

The KPPU is collaborating with Singapore’s Competition and Consumer Commission (CCCS) to address the broader implications of these allegations, given the cross-border nature of the ferry services.

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Surveys conducted by the KPPU at various ports indicate a noticeable price surge, with potential legal and administrative sanctions looming for the operators if found guilty of anti-competitive behaviors.

The investigation by the KPPU into Batam’s ferry ticket prices could reshape the regulatory landscape for maritime transport in the region. If proven, the allegations of cartel behavior may lead to significant penalties for the operators and could prompt a restructuring of pricing strategies to foster fair competition.

The KPPU’s upcoming investigation in Batam highlights a proactive stance against potential anti-competitive practices in Indonesia’s ferry service industry. As allegations of a pricing cartel surface, the outcomes of this probe could influence ferry pricing policies not just in Indonesia but potentially impact cross-border regulatory approaches with neighbors like Singapore, affecting both local and international travelers.

Source: Batam Pos (2024)