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KPPU alleges cartel behind high Batam-Singapore ferry prices
An official said the fare hike appeared to be uniform across operators, a possible indication of price collusion.
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Marine shuttle: A ferry arrives on July 15, 2022, at Harbour Front in Singapore after departing Indonesia from Batam Island, Riau Islands province. (AFP/Roslan Rahman)
T
he Business Competition Supervisory Commission (KPPU) has started investigating Batam-Singapore ferry operators over alleged cartel practices that caused ticket prices to soar after 2022.
The KPPU said operators had been charging passengers between Rp 800,000 (US$49.76) and Rp 900,000 for a one-way ticket in first half of 2022, more than double the usual fare of between Rp 270,000 and Rp 450,000.
The head of KPPU Regional Office I, Ridho Pamungkas, said the hike appeared to be uniform across operators, a possible indication of price collusion.
“We already called the business operators and agents […]. But we have not summoned the holding company [of the ferry companies] in Singapore. There are four companies that are being investigated,” Ridho said on Tuesday, as quoted by Bisnis.com.
Batam is a one-hour ferry ride to Singapore, and the island has been developed into a free trade zone to attract foreign investment in domestic manufacturing facilities.
Some operators told the KPPU that the price increase was in response to rising fuel costs as well as the fact that passenger occupancy had yet to return to normal after the pandemic, Ridho said.
However, Ridho noted that passenger occupancy had improved over time, with last year’s figure at 60 percent of 2019 baseline.
