Singaporeans flock to Batam to buy groceries, but ferries take fewer trips as fuel prices rise

JAKARTA: As the price of fuel continues to rise across the globe, ferry operators in Batam have been cutting down on the number of trips to and from Singapore. 

Nevertheless, the number of Singaporeans who are coming to Batam has grown. According to an April 9 (Thursday) Jakarta Post article, Singaporeans are flocking to the island to buy groceries and other goods due to higher prices in the city-state.

“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,” Batam Mayor Amsakar Achmad was quoted as saying. 

The report cited a taxi driver as saying that every day, he transports an average of 10 visitors from overseas from the port to local markets. On day trips from Singapore, they carry empty luggage with them on the ferry and bring home salted fish, chillies, and other goods, he added.

A local official was quoted as saying that Singaporean tourists spend US$300 (S$382) on trips to Batam, which is around the same as the local minimum wage. 

Because they earn more, it is easier for Singaporeans to buy essential goods such as rice and cooking oil, while “residents are forced to compete with this strong foreign purchasing power,” said Bane Raja Manulu, a member of the commission that oversees the creative economy and tourism.

On March 12, a number of operators of ferries that ply routes from Singapore and Batam said they would be adding a S$6 fuel surcharge to be charged at ticket counters. The reason given for the increase was the rising price of fuel due to the conflict in the Middle East, which has significantly disrupted the supply of oil across the globe. The conflict has caused the effective closure of the Strait of Hormuz, a chokepoint for 20% of the world’s oil.

And now, aside from higher ticket prices and fuel surcharges, ferry companies have also reduced the number of trips taken. A reservation officer for Majestic Fast Ferry told the Indonesian daily that some services had been reduced to manage fuel costs.

For ferry operator Batam Fast, trips have been cut by about 40%.

However, to minimise inconvenience to passengers, ferry operators are arranging with each other to reassign spots to enable people to still travel.

In spite of the new fuel surcharges of S$6 from Singapore and $3.82 from Batam, as well as higher fares from Batam to Malaysia, visitors from Singapore intent to score bargains in Batam have continued to increase.

The report said that the majority of Batam’s 257,928 international visitors in February were from Singapore, with arrivals seeing a jump of 3.7% from the previous month (216,620 in January to 131,306 in February). Year-on-year, the 24.5% increase is even more impressive. /TISG

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