Indonesia’s Finance Minister Clarifies Strait of Malacca Toll Remark Amid International Concern
Indonesia’s Finance Minister Purbaya Yudhi Sadewa stated on Friday that his earlier suggestion of imposing a levy on ships passing through the Strait of Malacca was not serious and that he recognizes such a move would violate international maritime law.
The minister made the clarification during a press conference in Jakarta, emphasizing that Indonesia, as a signatory to the United Nations Convention on the Law of the Sea (UNCLOS), cannot charge vessels for mere transit through the strait. He noted that UNCLOS permits fees only for specific services rendered to ships, such as refueling or pilotage, not for passage itself.
His remarks came two days after he initially floated the idea at an infrastructure symposium in Jakarta, where he questioned why ships use the strategic waterway without being charged, drawing a comparison to Iran’s actions in the Strait of Hormuz. The initial comment prompted concern from neighboring countries, particularly Malaysia and Singapore, which also border the strait, and drew attention from Australia, which urged respect for freedom of navigation.
Minister Purbaya reiterated that the Indonesian government has no plans to impose such a toll and described his earlier comment as an ill-received joke. He affirmed Indonesia’s support for UNCLOS and the principle of freedom of navigation, stating that the country remains committed to upholding international maritime law.
Instead of pursuing transit fees, the minister highlighted alternative legal avenues to increase state revenue, including improving ship-related services in other Indonesian straits such as the Sunda Strait or Lombok Strait. He noted that many vessels currently prefer to anchor in Singapore, the world’s largest ship refueling hub, suggesting that enhancing services in Indonesia could redirect some traffic.
The Strait of Malacca remains one of the world’s busiest maritime corridors, linking the Indian and Pacific Oceans and carrying over 40 percent of global seaborne trade. Any proposal to impose charges on transit has significant implications for international shipping and regional diplomacy.
By clarifying his position, the finance minister sought to ease regional tensions and reaffirm Indonesia’s adherence to established legal frameworks governing maritime trade.