JAKARTA/SINGAPORE - Singaporean manager Zheng Huang was shocked to find his round-trip ferry ticket to Indonesia's Batam island had soared to more than $70 over the past two years.
The 53-year-old, who used to visit the holiday spot every weekend for dining and shopping, now limits his trips to once or twice a month.
"That's the only way out now... Since you're there, you better make the most of your time," he told The Straits Times. His friends shared his frustration, but he lamented, "It's not within our control... we are held hostage."
Like Mr Zheng, other Singaporeans making the hour-long journey have been left baffled by the steep hikes, uniformly imposed by multiple operators, after Batam, part of Riau Islands province, reopened to international travellers in January 2022 as the Covid-19 pandemic waned.
Now, the mystery may be a step closer to being solved after Indonesia's independent business watchdog disclosed it has launched a probe into potential collusion and price-fixing among ferry operators on the route.
The probe began in 2022 following complaints from passengers, and local media reported about the investigation on May 29.
On May 29, Indonesia's Business Competition Supervisory Commission revealed that operators charged 800,000 rupiah to 900,000 rupiah (S$67 to S$74) for a return ticket from January to June 2022, more than twice the usual price of 270,000 rupiah to 450,000 rupiah.
A Straits Times check on the websites of ferry operators found that round-trip tickets from Singapore's HarbourFront Centre to Indonesia's Batam Centre International Ferry Terminal cost $34 to $60 in 2021, and $56 to $76 in 2024.
Mr Ridho Pamungkas, the commission's chief for northern Sumatra region, told The Straits Times that four operators are under investigation for alleged cartel practices, with their Singapore-based parent company yet to be summoned.
"The prices now are unreasonably high. It appears the businesses have agreed to fix prices at similar high values, so there's no competition between them," he said.
Mr Ridho noted that ferry ticket prices between Batam and Johor Baru are lower despite the longer two-hour journey. So, the Batam-Singapore fare is "an unhealthy sign".
The commission has faced "many obstacles" during their investigation over the past two years, such as obtaining information about the operators' expenses, he said.
"The ferry operators' management was uncooperative in providing data, making it difficult to gather evidence," he said, adding that the parent company being based in Singapore - and thus outside Indonesia's legal purview - only complicated matters.
The commission's head office in Jakarta held a focus group meeting with the Transportation Ministry, the Batam Development Authority (BP Batam), and the Riau Islands provincial administration on May 28 to discuss the high fares and possible collusion.
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A follow-up meeting will be held in Batam on June 11, this time with the ferry operators in attendance. "We are committed to resolving this problem," Mr Ridho said.
According to Mr Ridho, around 200,000 travellers of various nationalities travel from Singapore to Batam each month.
BP Batam's port management director Dendi Gustinandar told The Straits Times that ferry ticket prices to non-domestic destinations had indeed increased post-pandemic.
Before the pandemic, ferry services between Batam and Singapore served 3.9 million passengers annually, including 1.9 million foreign tourists. Since then, ticket sales have recovered 60 per cent to what they had been before the pandemic.
Mr Dendi said operators have attributed the price hike to rising fuel costs and lower passenger numbers.
Ferry employees at Batam terminals declined to comment on the ticket prices, directing The Straits Times to "ask the boss". E-mails to ferry operators went unanswered.
Meanwhile, Singaporean travellers say higher ferry prices will harm Batam's tourism sector and deter people seeking affordable weekend getaways. Some plan to cut down their trips.
Mr Benson Toh, 47, a public service manager, said: "I find this ferry ride expensive because Batam is so near. If the price keeps increasing, I won't go there so frequently."
Housewife Nur Fazirah, 25, said: "It's overpriced… Last time it was easy for us to travel to Batam, but now the price is not worth it."
Singaporeans say they could understand why ferry operators were only trying to make up for their losses during the pandemic, but that did not justify the current prices.
Manager Norazani Shaiddin, 63, who visits her family in Batam every Friday, said: "For the price of $70 and additional $40 for VIP services, it's very expensive… one can fly to Phuket."
Ms Farlyane Johari, a 35-year-old special education teacher, said the price increase was too drastic, especially since there was no improvement in the quality of vessels or reduction in trip times, adding: "It's a lot to just go to Batam for one hour, then come back."
But many others said they will continue to visit the island.
Mr Rick Heng, 51, a security supervisor, considers it a "give and take" situation given the global rise in prices of goods and services.
Another traveller, 45-year-old finance controller Vincent Lin, said: "I will continue to travel to Batam by ferry even with the price increase as things in Batam are cheap, so it is still worth it."
This article was first published in The Straits Times. Permission required for reproduction.
