Indonesia proposes to charge ships for passage in Malacca Strait
- Author:Maintenance network
- Source:Maintenance network
- Release Date:2026-04-25
The Indonesian Finance Minister made a sudden proposal at a seminar.
Recently, Indonesian Finance Minister Purbhaya Yudi Sadeva said that Indonesia should follow Iran's approach to charging ships in the Strait of Hormuz and consider imposing tolls on ships passing through the Strait of Malacca. He also said that if Indonesia, Malaysia, and Singapore share the proceeds equally, they will gain considerable income.
As soon as this statement came out, Singapore and Malaysia, which co-administer the strait, immediately expressed opposition, while Indonesian Foreign Minister Sugiyono made successive statements from April 23 to 24, clearly rejecting this plan.
The Strait of Malacca is jointly managed by Indonesia, Malaysia, and Singapore. It is the core shipping artery connecting the Indian Ocean and the Pacific Ocean, and is responsible for about 40% of the world's trade transportation volume.
Most of the oil exported from the Middle East to Asian economies such as China, Japan, and South Korea passes through this waterway. Its strategic and economic value is extremely high.
Purbaja's proposal essentially touches the core rules of the United Nations Convention on the Law of the Sea: Straits used for international navigation are subject to "transit passage rights". Coastal countries are not allowed to levy tolls and can only formulate regulations in the fields of navigation safety, pollution prevention and control. The Malacca Strait has long relied on a cooperative mechanism of voluntary contributions from user countries for maintenance and operation.
In response to the Finance Minister's proposal, Indonesian Foreign Minister Sugiyono emphasized that Indonesia abides by the United Nations Convention on the Law of the Sea. As an archipelagic country, Indonesia has no right to impose tolls on international straits within its territory.
He said that Indonesia has always maintained freedom of navigation and is committed to creating an open, neutral, and mutually beneficial waterway. Therefore, Indonesia will not implement a toll policy in the Strait of Malacca.
This official statement excludes the Finance Minister's personal proposal from government policy. The proposal is currently only at the discussion level and has not entered any formal government process, nor has it been endorsed by other Indonesian departments.
Singapore and Malaysia, as co-managers of the strait, immediately expressed their opposition to the proposal, believing that this move violated international law and consensus on regional shipping cooperation, would disrupt the stability of the global supply chain, and push up shipping costs.
The industry is also generally worried that if the toll is implemented, it will significantly increase the cost of global trade logistics, especially affecting energy and commodity trade in Asia, which is highly dependent on the Strait of Malacca.
Recently, Indonesian Finance Minister Purbhaya Yudi Sadeva said that Indonesia should follow Iran's approach to charging ships in the Strait of Hormuz and consider imposing tolls on ships passing through the Strait of Malacca. He also said that if Indonesia, Malaysia, and Singapore share the proceeds equally, they will gain considerable income.
As soon as this statement came out, Singapore and Malaysia, which co-administer the strait, immediately expressed opposition, while Indonesian Foreign Minister Sugiyono made successive statements from April 23 to 24, clearly rejecting this plan.
The Strait of Malacca is jointly managed by Indonesia, Malaysia, and Singapore. It is the core shipping artery connecting the Indian Ocean and the Pacific Ocean, and is responsible for about 40% of the world's trade transportation volume.
Most of the oil exported from the Middle East to Asian economies such as China, Japan, and South Korea passes through this waterway. Its strategic and economic value is extremely high.
Purbaja's proposal essentially touches the core rules of the United Nations Convention on the Law of the Sea: Straits used for international navigation are subject to "transit passage rights". Coastal countries are not allowed to levy tolls and can only formulate regulations in the fields of navigation safety, pollution prevention and control. The Malacca Strait has long relied on a cooperative mechanism of voluntary contributions from user countries for maintenance and operation.
In response to the Finance Minister's proposal, Indonesian Foreign Minister Sugiyono emphasized that Indonesia abides by the United Nations Convention on the Law of the Sea. As an archipelagic country, Indonesia has no right to impose tolls on international straits within its territory.
He said that Indonesia has always maintained freedom of navigation and is committed to creating an open, neutral, and mutually beneficial waterway. Therefore, Indonesia will not implement a toll policy in the Strait of Malacca.
This official statement excludes the Finance Minister's personal proposal from government policy. The proposal is currently only at the discussion level and has not entered any formal government process, nor has it been endorsed by other Indonesian departments.
Singapore and Malaysia, as co-managers of the strait, immediately expressed their opposition to the proposal, believing that this move violated international law and consensus on regional shipping cooperation, would disrupt the stability of the global supply chain, and push up shipping costs.
The industry is also generally worried that if the toll is implemented, it will significantly increase the cost of global trade logistics, especially affecting energy and commodity trade in Asia, which is highly dependent on the Strait of Malacca.