The National Association of River, Lake, and Ferry Transportation Entrepreneurs has asked the government to immediately adjust ferry transportation tariffs to save the industry from the current sharp increase in various operational cost components.
In a statement in Serang, Banten, on Saturday, Togar Napitupulu, Head of the Merak Branch of the Gapasdap explained that business owners are increasingly under pressure from rising prices due to fluctuations in the US dollar exchange rate against the rupiah. This increase has a direct impact on maintenance costs and the procurement of imported ship components.
Togar detailed that the price of marine oil has soared by 60 percent. Furthermore, spare part prices have risen by 30 to 40 percent, and dry-docking and ship classification renewal costs have risen by around 20 percent.
"The current ferry fares don't reflect the operational costs that companies must bear. These various cost components are mandatory to meet safety standards," he said.
He explained that, based on a 2019 evaluation, ferry fares were actually still around 31.8 percent below the Cost of Goods Sold (HPP). Unfortunately, the government has yet to address this shortfall.
Amidst the pressure of operational costs, ship operators are still required to meet all service, security and safety standards as mandated by Law Number 17 of 2008 concerning Shipping.
The company's financial condition is also worsened by the decreasing frequency of voyages due to the addition of fleets on the same routes, so that the opportunity for each ship to earn income from the number of trips becomes increasingly limited.
Togar warned that if the tariff adjustment is not implemented and triggers a decline in service quality and safety in the future, the regulator must share responsibility for this situation.
In addition to urging the implementation of new tariffs in accordance with the HPP, Gapasdap also proposed that the government provide stimulus to reduce operational costs.
Some of the strategic proposals put forward include the elimination of Non-Tax State Revenue (PNBP), the elimination of fuel tax, reduction of port and classification fees, and the provision of low-interest credit facilities for the maritime sector as implemented in neighboring countries.
