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Home»Explore by countries»Indonesia»Indonesian Minister suggets levy on ships transiting Malacca Strait
Indonesia

Indonesian Minister suggets levy on ships transiting Malacca Strait

By IslaApril 23, 20262 Mins Read
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Indonesia is reportedly exploring the idea of introducing a levy on vessels passing through the Straits of Malacca, a proposal that differs from the positions of its neighbours, Malaysia and Singapore.

At a financial symposium in Jakarta on 22 April, Indonesian Finance Minister Purbaya Yudhi Sadewa acknowledged that while Indonesia lies along the strait—one of the world’s most important trade and energy routes, monetising it is neither simple nor necessarily appropriate.

The Straits of Malacca connect the Indian and Pacific Oceans and are widely regarded as one of the world’s key maritime chokepoints, alongside routes such as the Suez Canal and the Panama Canal.

According to Jakarta Global, he noted that any such levy would require coordination with neighbouring states, pointing out Indonesia’s significant share of control over the waterway and also referenced discussions around vessel charges in the Strait of Hormuz as a potential comparison.

However, the proposal contrasts with Singapore’s stance. As reported, Foreign Minister Vivian Balakrishnan reiterated that navigation through the Malacca Straits must remain open and unrestricted for all users.

Malaysia has also reaffirmed a similar position, with Transport Minister Loke Siew Fook stressing at a Singapore roundtable that Malaysia remains committed to ensuring both freedom of navigation and transit through the straits.

Purbaya himself indicated that the idea is still in its early stages and would face significant hurdles, including the need for agreement among littoral states and likely resistance from global shipping stakeholders.



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