Indonesia Shuts Down Malacca Strait Toll Talk, Distancing From Hormuz

Indonesia has firmly rejected any plans to impose tolls on vessels transiting the Malacca Strait, with Finance Minister Purbaya Yudhi Sadewa clarifying that his earlier remarks were made in jest and that such a move would violate international maritime law. The clarification comes amid regional concerns over freedom of navigation and follows a broader reaffirmation by Indonesia, Malaysia, and Singapore to maintain the strait open and safe under international law.

Minister Clarifies Remarks Were Not Serious

Speaking at a press conference in Jakarta on April 24, 2026, Purbaya Yudhi Sadewa stated he was not serious about suggesting a levy on ships passing through the Malacca Strait, a comment he made two days earlier at an infrastructure investment conference. He emphasized that the Indonesian government never had such plans and acknowledged that imposing tolls would contravene the United Nations Convention on the Law of the Sea (UNCLOS), to which Indonesia is a signatory.

“As an UNCLOS signatory, we [Indonesia] can’t impose levies on transiting vessels, except for the services,” Purbaya said. “UNCLOS upholds freedom of navigation. We support it, and we have already ratified this treaty.”

He added that Indonesia could instead explore legal avenues to boost state revenue, such as improving ship-related services like refuelling in alternative straits such as the Sunda or Lombok Strait, where many vessels currently prefer to anchor in Singapore.

Regional Reactions and Legal Context

The initial remark had drawn concern from Malaysia and Singapore, both of which share jurisdiction over the Malacca Strait. Singapore’s Foreign Minister Vivian Balakrishnan had earlier stated that transit passage is “not a privilege to be granted by the bordering state” and “not a toll to be paid,” even as Malaysia’s Transport Minister Loke Siew Fook reaffirmed his country’s commitment to freedom of navigation.

Purbaya quickly walked back his comment, saying, “If only it could be like that, but that’s not the case,” and clarified that tolls are only permissible on constructed canals like the Panama or Suez Canal, not on natural straits used for international navigation.

Regional Commitment to Open Seas

The clarification followed a joint statement by Indonesia, Malaysia, and Singapore reaffirming their commitment to keeping the Straits of Malacca and Singapore open and safe in accordance with international law, shortly after the USS Miguel Keith passed through the waterway. The incident had heightened regional attention on maritime security and legal norms governing strategic chokepoints.

Broader Implications for Maritime Law

Legal experts have warned that any attempt to impose tolls on the Malacca Strait would undermine Indonesia’s own legal foundations under UNCLOS, the same treaty that recognizes its archipelagic status. A levy on transit would be illegal under international law, which distinguishes between fees for services rendered and charges merely for passage.

Purbaya’s clarification reinforces Indonesia’s adherence to UNCLOS and its role in maintaining stability in one of the world’s busiest shipping lanes, through which approximately one-third of global trade passes annually.

Conclusion

Indonesia’s recent episode underscores the sensitivity surrounding maritime tolls and the importance of upholding international legal frameworks. By distancing itself from comparisons to Iran’s actions at the Strait of Hormuz and reaffirming its commitment to UNCLOS, Indonesia aims to preserve regional trust and ensure the Malacca Strait remains a corridor for unimpeded, lawful navigation.