Indonesia Considering Introducing a Levy on Commercial Ships Passing Through Strait of Malacca

INDONESIA – According to local reports on Wednesday, Indonesia is considering introducing a levy on commercial ships passing through the Strait of Malacca, to generate state revenue.

Finance Minister Purbaya Yudhi Sadewa said the proposal reflects President Prabowo Subianto’s push to elevate Indonesia’s role in global trade, according to Jakarta Globe.

Speaking at a Jakarta symposium, he argued that despite the country’s strategic location, ships currently transit the waterway without paying any fee.

“Indonesia is not a marginal country. We sit along a key global trade and energy route, yet ships passing through the Malacca Strait are not charged,” he said.

The Strait of Malacca – shared by Indonesia, Malaysia, and Singapore – is a crucial maritime artery linking the Indian and Pacific Oceans and is often compared to other strategic chokepoints such as Hormuz, Suez, and Panama.

Purbaya suggested any charging mechanism would require coordination with neighboring states, noting Indonesia’s dominant geographic share of the route.

He also pointed to international discussions, including proposals linked to Iran on tolls in the Strait of Hormuz, as possible reference models.

However, the idea faces immediate regional resistance as Singaporean Foreign Minister Vivian Balakrishnan reiterated that maritime transit in the Malacca and Singapore Straits must remain free and unobstructed and said they will not participate in any attempt to close or interdict or to impose tolls in their neighborhood.

Last month, Iran’s parliamentary National Security Commission reportedly approved a bill to impose transit tolls on ships passing through the Strait of Hormuz, which is pending further legislative approval. However, the US and other countries oppose any tolls on ships passing through the Strait of Hormuz.