Indonesia's Malacca Strait toll proposal faces regional pushback
Jakarta floated the idea of charges for vessels transiting the strategic waterway, but Malaysia and Singapore insist navigation must remain free
Quick Look
- Indonesia's Finance Minister proposed imposing tolls on ships in the Strait of Malacca, aligning with President Prabowo's vision for Indonesia as a 'key player' globally.
- However, Indonesia's Foreign Minister quickly rejected the idea as inconsistent with international law, while Malaysia and Singapore insisted navigation must remain free.
- Analysts say tolls are unlikely due to strong Asean cooperation, though more can be done to ensure the strategic waterway stays open.
AI-generated summary
Indonesia's Finance Minister Purbaya Yudhi Sadewa floated the idea of imposing a levy on ships passing through the Malacca Strait on Wednesday. Purbaya said this would align with President Prabowo Subianto's directive that Indonesia should no longer be seen as a "peripheral nation" but a "key player" on the global economic stage, according to local media reports.
A day later, Foreign Minister Sugiono said Jakarta would not impose tariffs on vessels passing through the strait as doing so would not be consistent with international law. Then, over the weekend, Maritime Security Agency chief Irvansson called the strait a "giant sea toll road" that Indonesia had not fully utilised.
The rapid reversal highlights the complexities of managing one of the world's busiest shipping lanes, which runs between Indonesia and Malaysia and connects the Indian Ocean to the South China Sea.
"Indonesia, Malaysia and Singapore are united in upholding the principle of free passage but this must be 'actively maintained'," said Collin Koh, a senior research fellow at the S. Rajaratnam School of International Studies in Singapore. "The likelihood of tolls in the strait is low thanks to strong Asean cooperation, but more can be done by member countries and even external powers to ensure the waterway stays free to all traffic."
The controversy was triggered by Iran's closure of the Strait of Hormuz in the Middle East, which turned the spotlight on the Malacca Strait as an alternative route for energy shipments. However, analysts noted that any attempt to impose unilateral tolls would face significant legal and diplomatic obstacles.
"Under the United Nations Convention on the Law of the Sea (UNCLOS), the Malacca Strait is an international strait used for innocent passage," said Dr. Fitrian Ardiansyah, a maritime law expert at Indonesia's University of Indonesia. "Imposing tolls would violate these provisions and likely trigger protests from major shipping nations."
The strait handles roughly 100,000 vessels annually and is particularly critical for oil and liquefied natural gas shipments moving from the Middle East to Asian markets.
