JAKARTA: Surging fuel costs as a result of the United States-Israeli war on Iran have forced a cutback in ferry services between Batam, Riau Islands, and neighboUring Singapore.
Yet despite fewer crossings, Batam is experiencing a surge in Singaporean visitors, who are flocking to the island to stock up on groceries and everyday goods as prices back home continue to climb.
At the Batam Centre International Ferry Terminal, Diana, a reservation officer for Majestic Fast Ferry, said the operator had scaled down its daily Batam-HarbourFront trips from 16 to 12, while services to Tanah Merah have been reduced from nine to four.
“The reductions were implemented to manage fuel costs," Diana told The Jakarta Post on Tuesday. Other operators have taken similar measures.
Batam Fast, one of the major ferry providers on the route, has reportedly cut its services by about 40 per cent. Nova, a reservation officer at Batam Fast, confirmed the reductions, adding that the company had sought to minimize disruption by coordinating with partner operators.
“We are working closely with other ferry operators. Routes that we suspend are reassigned to our partners to ensure passengers can still travel,” Nova said.
In addition to cutting trip frequencies, ferry operators have also raised fares to cushion the impact of rising fuel costs.
All operators on the Batam-Singapore route have introduced a fuel surcharge as part of the adjustment. The surcharge is set at S$6 (US$4.71) for passengers departing from Singapore, and Rp 65,000 ($3.82) for those leaving from Batam.
Fares on routes from Batam to Malaysia have also increased significantly. Round-trip tickets now cost around Rp 867,000, up from approximately Rp 665,000 previously.
Despite fewer ferry services and higher ticket prices, Batam continues to attract a growing number of Singaporean visitors, many of whom are drawn by the island’s relatively low cost of groceries and daily necessities amid rising prices at home.
As of February, total international arrivals through Batam’s entry points reached 257,928, with Singaporeans accounting for the majority of these.
Arrivals rose by 3.7 per cent month-on-month, increasing from 126,620 in January to 131,306 in February. On an annual basis, the February figure jumped by 24.5 per cent compared with the same period last year, when Batam recorded 104,684 international visitors.
Batam Mayor Amsakar Achmad said the island was increasingly emerging as an alternative destination for Singapore residents seeking more affordable basic necessities.
“Batam has become a preferred choice for Singaporeans to purchase essentials at competitive prices. This trend has accelerated following the sharp rise in fuel costs in Singapore,” he said.
Suhardi, a taxi driver at Batam Centre Port, said he had directly benefited from this cross-border shopping trend, transporting an average of 10 foreign visitors from the port to local markets each day.
“Passengers arrive on the ferry with large, empty suitcases and return with them filled with groceries such as chilies, salted fish and other essentials,” Suhardi said.
“Those who come to buy daily necessities usually head back to Singapore by late afternoon or evening,” he added.
Despite the economic benefits, Bane Raja Manulu, a member of House of Representatives Commission VII, which oversees the creative economy and tourism, expressed concern over potential competition between local Batam residents and Singaporean visitors for basic necessities.
“On average, each Singaporean tourist spends around US$300 per trip in Batam, roughly equivalent to the city’s monthly minimum wage. With much higher incomes, Singaporeans can easily buy rice, cooking oil and other essentials, while local residents are forced to compete with this strong foreign purchasing power,” he said. - The Jakarta Post/ANN
