Indonesian Ferry Association Urges Government to Modernize Tariff System Amid Rising Costs

Indonesia's ferry transportation sector is calling for a significant overhaul of its tariff system, arguing that the current structure is failing to keep pace with rising operational costs and investment needs. The National Association of River, Lake, and Crossing Transportation Entrepreneurs (Gapasdap) is urging the government to implement a more modern, equitable, and sustainable tariff system.

Gapasdap Chairman Khoiri Soetomo stated on Sunday (June 21, 2026) that the ferry industry plays a vital strategic role in Indonesia. It connects different regions, supports national logistics, drives local economies, and facilitates public mobility in the archipelagic nation. Therefore, the sustainability of the sector is crucial not only for operators but also for the public and national development.

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The ferry industry has a strategic role as a connector between regions, a supporter of national logistics distribution, and a driver of regional economies. Besides that, it is also a means of public mobility in an archipelagic country like Indonesia.

According to Gapasdap's analysis, based on calculations by an evaluation team from the Ministry of Transportation, current ferry tariffs are approximately 31.81 percent below the Cost of Production (HPP). This discrepancy arises because the ministry is still using a cost structure from 2019. Khoiri pointed out that since 2019, numerous operational cost components have increased, including fuel, lubricants, docking, spare parts, port services, labor, insurance, and compliance with safety and service standards.

Gapasdap expressed concern that proposed tariff adjustments are insufficient. Increases targeting only specific cargo vehicle categories, resulting in an average rise of only 2 to 3 percent on major routes, do not adequately offset the escalating operational costs. Furthermore, Gapasdap highlighted disappointment over the delayed implementation of Ministerial Decree No. 131 of 2024, which was initially planned to take effect in October 2024. This decree, they noted, was developed through an extensive process involving various stakeholders, including government officials, operators, users, and academics.

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Since 2019 until now, various operational cost components have increased, starting from fuel oil, lubricants, docking, spare parts, port services, labor, insurance, to the cost of fulfilling safety and service standards. If using the actual cost structure for 2026, the gap between tariffs and operational costs is estimated to be even larger.