Economist Says Rising Ferry Fares Will Make Prices of Flying Goods Increase

Economist Says Rising Ferry Fares Will Make Prices of Flying Goods Increase
Economist Says Rising Ferry Fares Will Make Prices of Flying Goods Increase

TEMPO.CO, Jakarta – Executive Director of the Institute for Development of Economics and Finance (Indef) Tauhid Ahmad responded to the discourse of increasing ferry transport fares. He estimates that the increase will not be much different from land transportation of around 10-20 percent, and could have an impact on rising prices of goods.

“I think it is true that the crossing fare may be lower or at least the same as the land transportation fare,” he said by telephone on Friday, September 23, 2022. “Because the sea crossing also uses diesel, which also uses diesel as fuel. solar.”

As for the impact on food products, said Tauhid, it will vary. Because it depends on the logistics costs of the formation of the food itself. Meanwhile, the percentage must be calculated first, because each commodity is different.

According to him, commodities with large volumes will usually have a smaller increase, on the contrary, small increases can be much larger, depending on the use of logistics itself. “In general, if the price increases, the inflation can be up to 7 percent, but if the food price increases, it will vary,” said Tauhid.

He gave an example if cooking oil or eggs when increasing raw materials and so on can increase from Rp. 21 thousand to Rp. 24 thousand, the percentage will vary. “Well, it will really depend on the commodity,” said Tauhid.

Tauhid explained that price increases will accumulate in the consumer price index for each product. However, later you will find an increase in the average price, usually the main ones are nine basic commodities, for example, medium rice, maybe around Rp. 11 thousand, so Rp. 12 thousand and so on, it will adjust.

“On average, if it is calculated, it can be up to 15-20 percent, but yes, this is for commodities that are very sensitive to logistics costs,” he said. “If the rice is produced from the West Java area, the cost is not as big as if for example it has to be imported from Sumatra to Java.”

Previously, the Ministry of Transportation had issued Ministerial Decree No. 172 of 2022 which regulates the new tariffs for ferry transportation. Based on the September 15 policy, the average rate increase was 11.79 percent.

In accordance with the contents of the regulation, this tariff adjustment has already taken effect when the regulation was enacted or Monday, September 19, 2022. However, to this day, the government is still suspending the policy as regulated in Kepmenhub Number 172 of 2022.

General Chairperson of the National River, Lake and Ferry Transport Entrepreneurs (Gapasdap) Khoiri Soetomo questioned why the rules for increasing the tariffs for ferry transportation that had been signed but had not yet been implemented.

“Until today, I have not received any good news from the Ministry of Transportation regarding the Decree of the Minister of Transportation Number 172 of 2022, which was supposed to be enforced on Monday, September 19, at 00.00 WIB. I don’t understand why the rules that have been signed have not been implemented,” he said when contacted on Friday, September 23, 2022.

In fact, said Khoiri, the regulation has gone through a very heel calculation from the inter-agency tariff team after a long wait. He considered that all should imitate the firmness and courage of President Joko Widodo alias Jokowi who firmly raised the price of fuel oil (BBM) by up to 32 percent.

Khoiri explained that the government always demands improvements in service and safety standards which are continuously added and refined through domestic and international regulations. However, strangely, he did not relax and forgot that Jer Basuki Mawa Beya.

“It means that every success requires sacrifice,” said Khoiri. “Don’t just ask for safety and service standards to be raised, but don’t want to pay the right price.”

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The article is in Indonesian

Tags: Economist Rising Ferry Fares Prices Flying Goods Increase

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