New Tariffs for Trans-Provincial Ferry Services

The Ministry of Transportation (“Ministry”) has issued Regulation No. 30 of 2017 on Tariffs for the Organization of Trans-Provincial Ferry Services (“Regulation 30/2017”) in order to maintain the continuity of ferry services, expedite the mobilization of passengers and cargo, and eventually contribute to the overall improvement of the national economy.[1]
 
With these goals in mind, Regulation 30/2017 redefines various provisions relating to tariffs for trans-provincial ferry services.[2] These provisions were previously regulated under Ministry Regulation No. PM 37 of 2016 on Tariffs for Trans-Provincial Ferry Services, which was amended several times, most recently through the issuance of Ministry Regulation No. 145 of 2016 (“Former Regulations”).
 
Types of Tariff
 
In general, Regulation 30 2017 sets out two types of tariff for trans-provincial ferry services, as described in the table below:[3]
 

Type of Tariff	Description
Passenger tariffs	These tariffs are further subdivided into two categories, specifically: (1) Economy-class tariffs; and (2) Non-economy class tariffs.
Vehicle tariffs (which encompass both cargo and passengers)	These tariffs are further subdivided into nine groups based on vehicle type, as described below: 1. Group I for bicycles; 2. Group II for motorcycles with a <500 cc capacity and carts; 3. Group III for motorcycles with a ≥500 cc capacity and three-wheeled vehicles; 4. Group IV for jeeps, sedans, minicabs, minibuses, public-minibuses (mikrolet), pick-up cars, station wagons with maximum lengths of 5 meters, and similar vehicles; 5. Group V for buses, cargo vehicles (e.g. trucks or tank-trucks) with maximum lengths of 7 meters; 6. Group VI for buses, cargo vehicles (e.g. trucks or tank-trucks) with lengths of between 7 and 10 meters, and other similar vehicles, as well as locomotives without any wagons; 7. Group VII for cargo vehicles (e.g. tronton ortank-trucks), heavy equipment and locomotives inclusive of wagons with lengths of between 10 and 12 meters, and similar vehicles; 8. Group VIII for cargo vehicles (e.g. tronton ortank-trucks), heavy equipment and locomotives (including wagons) with lengths of between 12 and 16 meters, and similar vehicles; and 9. Group IX for cargo vehicles (e.g. tronton ortank-trucks), heavy equipment and locomotives (including wagons) with lengths of more than 16 meters, and similar vehicles.

 
Previously, the Former Regulations did not specifically address any classification of passenger tariffs into economy-class tariffs and non-economy class tariffs.[4]
 
Determination of Tariffs
 
 
Regulation 30/2017 stipulates that tariffs for non-economy class passengers are to be determined by the relevant ferry-service operators. Meanwhile, tariffs for economy-class passengers and vehicles for ferry services operating on 50 routes throughout Indonesia are set under the Appendix to Regulation 30/2017. Furthermore, tariffs for objects which do not fall into any of the categories listed above are to be determined through the issuance of a ministerial regulation.[5]
 
Note that the tariffs set out under the Appendix to Regulation 30/2017 must already include insurance, which is the responsibility of the ferry operators, but not either of the following elements: 1) Mandatory premiums for passenger accident coverage; and 2) Applicable service fees at seaports. Indeed, Regulation 30/2017 strictly prohibits operators of ferry services and/or seaport organizers from imposing any other levies, unless written approval for such levies has already been obtained from the Ministry.[6]  
 
Previously, the Former Regulations ruled that any tariffs for the transportation of objects other than passengers and vehicles were to be determined based on agreements between ferry-service operators and customers. Furthermore, the Former Regulations also set tariffs for the following 14 routes which were lower than the tariffs which have now been set under Regulation 30/2017:[7]
 

1.	Merak – Bakauheni;
2.	Ketapang – Gilimanuk;
3.	Lembar - Padangbai;
4.	Bajoe – Kolaka;
5.	Tanjung Kelian – Tanjung Apiapi;
6.	Siwa-siwa – Lasusua;
7.	Sape – Waikelo;
8.	Sape – Labuhan Bajo;
9.	Bira – Sikeli;
10.	Pagimana – Gorontalo;
11.	Bitung – Ternate;
12.	Balikpapan – Mamuju;
13.	Balikpapan – Taipa; and
14.	Batam – Mengkapan.

 
Regulation 30/2017 has been in force since 25 April 2017 and simultaneously repeals and replaces the Former Regulations._AP2