Indonesia has firmly rejected any proposal to impose tariffs on vessels passing through the Strait of Malacca, with Foreign Minister Sugiono stressing that such a move would conflict with international maritime law and long-standing principles governing global navigation.
Speaking at the Pancasila Building at the Ministry of Foreign Affairs in Central Jakarta on Thursday (April 23, 2026), Sugiono made clear that Indonesia’s position is anchored in the United Nations Convention on the Law of the Sea (UNCLOS), which defines the legal framework for maritime conduct, including the rights of archipelagic states and the rules governing international shipping lanes.
“So, no. Indonesia is not in a position to do that,” Sugiono said when asked about the possibility of collecting tariffs in the Strait of Malacca. He emphasized that Indonesia consistently upholds UNCLOS as the foundation of international maritime governance and rejects any interpretation that would allow unilateral levies on transit passage.
The Strait of Malacca, one of the world’s most critical shipping corridors, connects the Indian Ocean to the South China Sea and the broader Pacific region. It serves as a major artery for global energy transport and trade flows, with thousands of vessels passing through annually, including oil tankers and cargo ships bound for East Asia.
Sugiono underscored that Indonesia’s position is aligned with broader international expectations that key maritime routes remain open, neutral, and accessible to all countries under established legal norms.
“We also hope for free passage, and I think that is a commitment from many countries to create a free, neutral, and mutually supportive shipping lane,” he added, reinforcing Jakarta’s support for uninterrupted maritime commerce.
His remarks come amid renewed public discussion in Indonesia about the economic potential of strategic waterways, particularly following comments from Finance Minister Purbaya Yudhi Sadewa, who previously suggested that shipping lanes such as the Strait of Malacca could theoretically generate state revenue if a fee system were introduced.
At a symposium held by PT SMI at the AYANA Midplaza Hotel in Jakarta on Wednesday (April 22), Purbaya compared the Malacca Strait to other strategic maritime chokepoints such as the Strait of Hormuz, where geopolitical tensions have at times influenced shipping costs and risk premiums.
“The president’s directive is that Indonesia is not a peripheral country. We are on a strategic route for global trade and energy,” Purbaya said, framing Indonesia’s geographic position as a potential economic advantage.
He also remarked that Indonesia currently does not impose charges on vessels passing through the Strait of Malacca, despite its importance as a global shipping lane. “We don’t charge ships passing through the Strait of Malacca. Now Iran charges ships passing through the Strait of Hormuz,” he said, referring to the geopolitical differences between the two waterways.
In a speculative assessment, Purbaya suggested that if such a mechanism were ever implemented, revenue sharing between Indonesia, Malaysia, and Singapore could be significant due to the shared geography of the strait. However, he acknowledged the practical and legal constraints. “Singapore is small, Malaysia and we’d split it in half. If only that were possible, but it’s not the case,” he added.
Legal experts and policymakers have long noted that the Strait of Malacca operates under a complex jurisdictional arrangement involving Indonesia, Malaysia, and Singapore, as well as international maritime law. Under UNCLOS, ships enjoy the right of transit passage through international straits used for navigation between parts of the high seas or exclusive economic zones, limiting the ability of coastal states to impose restrictive fees.
Indonesia’s reaffirmation of its stance effectively closes the door on any near-term policy shift toward monetizing passage through the strait. The Foreign Ministry’s statement signals continuity in Jakarta’s approach to maritime governance, prioritizing legal consistency and regional cooperation over unilateral economic measures.
The Strait of Malacca remains one of the busiest maritime routes globally, handling a significant portion of world trade, particularly energy shipments from the Middle East to East Asia. Its strategic importance has made it a focal point of international security discussions, including issues related to piracy, navigation safety, and environmental protection.
Analysts note that while discussions about potential revenue generation from maritime corridors may resurface periodically, any such proposals would face substantial legal and diplomatic barriers. The current framework under UNCLOS, combined with shared regional management, leaves little room for unilateral tariff systems.
For now, Indonesia’s position reinforces a stable maritime policy approach at a time when global shipping routes are under increasing scrutiny due to geopolitical tensions, supply chain vulnerabilities, and evolving trade patterns.
By reaffirming its commitment to freedom of navigation and international law, Jakarta signals its intention to maintain the Strait of Malacca as an open and neutral artery of global commerce, rather than a monetized checkpoint.
