The Ministry of Transportation will increase the cost of inter-island ferry service across Indonesia by between 7-15% on September 1, 2014.
The director general of land transportation for the Ministry, Suroyo Alimoeso confirmed that the Transportation Minister, E.E. Mandindaan, has basically approved an increase in ferry tariffs, with the actual amount of the increase at each crossing still to be decided.
According to Bisnis.com, the Transportation Minister also indicated he did not want to signal the amount by which ferry crossing tariffs would increase before the Lebaran exodus, to allow the public to enjoy the biggest holiday of the year without the burden of higher ferry fares.
When the Minister was asked about the date for the planned increase in ferry tariff, the Minister replied on August 8, 2014, “by the end of this month, at the latest.”
In calculating the amount of any increase the Minister must weigh the operating cost of the ships involved, increases in annual docking costs and the cost of spare parts.
Meanwhile ship operators represented by the Association of River, Island and Crossing operators (Gapasdap) have been seeking an increase from early 2014, claiming severe financial hardship occasioned by rising costs and inadequate ticket revenues. The representative of Gapasdap, Bambang Harjo S. urged the government to increase ferry tariffs at the earliest opportunity, insisting that any increase granted his members would not be inflationary to the economy as a whole.
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