- Purbaya Yudhi Sadewa, head of Indonesia’s Fiscal Policy Agency under the Finance Ministry, said there are absolutely no plans to impose tolls in the Malacca Strait.
- The Indonesian government said it will comply with UNCLOS and supports freedom of navigation and the openness of sea lanes.
- Singapore and Malaysia also said transit rights in the Malacca Strait are guaranteed to all and cannot be decided unilaterally by any country.
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An Indonesian official has withdrawn remarks that stirred controversy by suggesting the Malacca Strait, one of the world’s busiest maritime routes, might need measures similar to Iran’s tolls on ships transiting the Strait of Hormuz.
Purbaya Yudhi Sadewa, head of Indonesia’s Fiscal Policy Agency under the Finance Ministry, told reporters on April 25 that he had not made the comment seriously and that Indonesia has no plans to impose tolls, according to Reuters and Bloomberg.
The Malacca Strait is a roughly 900-kilometer shipping lane between the Malay Peninsula and Indonesia’s Sumatra island. It is the shortest maritime route linking East Asia, including South Korea, with India, the Middle East, Africa and Europe.
More than 200 vessels pass through the strait each day, about twice the volume of the Strait of Hormuz, and it accounts for about a quarter of global trade. Iran’s military blockaded the Strait of Hormuz by force on Feb. 28 after US and Israeli airstrikes triggered war in the Middle East, and has since charged ships fees in exchange for permission to pass.
Purbaya stressed that Indonesia would comply with the United Nations Convention on the Law of the Sea, or UNCLOS, which sets rules for international shipping lanes. Foreign Minister Sugiono also moved to defuse the controversy, saying there were no plans to levy tolls.
Indonesia, as a trading nation, supports freedom of navigation and open sea lanes, he said. It is neither in a position to impose such tolls nor would that be appropriate. He added that Indonesia, as an archipelagic state, must respect UNCLOS and would uphold its obligations.
Purbaya sparked the controversy at an event in Jakarta on April 22, when he said Indonesia sits on a strategically important global energy trade route but does not charge tolls on ships passing through the Malacca Strait, adding that he did not know whether that was right or wrong.
The remarks drew objections from Singapore and Malaysia, which share the Malacca Strait with Indonesia. Singapore Foreign Minister Vivian Balakrishnan said transit rights are guaranteed to all and that Singapore would not take part in any attempt to close nearby straits, block passage or impose tolls. Malaysian Foreign Minister Mohamad Hasan also said no country can decide unilaterally on navigation rights in the strait.
Choi Su-jin, Hankyung.com reporter naive@hankyung.com