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Strait Stability At Stake: Indonesia Rejects Tolls In Malacca

More than 200 vessels – including container ships, oil tankers and bulk carriers – transit the Strait of Malacca daily. PHOTO; REUTERS
More than 200 vessels – including container ships, oil tankers and bulk carriers – transit the Strait of Malacca daily. PHOTO; REUTERS
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Jakarta rules out ship levies as regional leaders close ranks around free and open sea lanes.

Indonesia has rejected suggestions to charge ships transiting the Strait of Malacca, reaffirming legal and political commitments to free passage in one of the world’s busiest maritime chokepoints amid rising global tensions.

Indonesia’s Legal Position
Foreign Minister Sugiono said on April 23 that Indonesia will not impose levies on vessels in the Strait of Malacca, stressing that such charges would contradict the United Nations Convention on the Law of the Sea, which recognises Indonesia as an archipelagic state and guarantees unimpeded transit passage through its sea lanes. He underlined Jakarta’s commitment to keeping the strait open, neutral and supportive of global shipping.

Regional Responses To Toll Idea
Sugiono’s remarks followed Finance Minister Purbaya Yudhi Sadewa’s earlier suggestion that littoral states could explore tolls similar to Iran’s plan for the Strait of Hormuz, an idea he later acknowledged was complex and would require agreement with Malaysia and Singapore. Malaysian Foreign Minister Mohamad Hasan quickly reiterated that no country can unilaterally determine access, citing a long standing understanding among Malaysia, Singapore, Indonesia and Thailand that any move in the 900 km strait must be jointly decided.

Singapore’s Commitment To Free Passage
Singapore’s Foreign Minister Vivian Balakrishnan said Indonesia, Malaysia and Singapore share a strategic interest in keeping the Straits of Malacca and Singapore open, rejecting any attempt to close, interdict or toll the waterways. He emphasised that transit passage under UNCLOS is a right, not a privilege or fee based licence, adding that Singapore will not negotiate tolls with Tehran and will defend freedom of navigation for all ships, including warships.

Strategic Chokepoint And Great Power Anxiety
More than 200 vessels transit the Strait of Malacca daily, carrying over a quarter of global trade and about 80 percent of China’s oil imports through a channel that narrows to just 2.7 km near Singapore. The strait’s vulnerability feeds long standing fears in Beijing, often called the “Malacca dilemma,” and fuels concern that new US Indonesia defence cooperation could sharpen competition with China even though the recent Major Defence Cooperation Partnership does not explicitly mention the waterway.

Regional Calls For Caution And Dialogue
In Malaysia, opposition coalition Perikatan Nasional urged Prime Minister Anwar Ibrahim’s government to guard against external powers using the strait to project influence, calling for dialogue, de escalation and an independent foreign policy that avoids entanglement in conflicts. Philippine Foreign Secretary Theresa Lazaro said ASEAN discussions currently focus on energy, food security and citizen protection, noting that Malacca has not yet been formally raised at bloc level but could surface in future meetings as spillover anxiety from the Strait of Hormuz reaches South east Asia.

The swift rejection of tolls for the Strait of Malacca by Indonesia, Malaysia and Singapore signals a strong regional front in favour of legal rights and open sea lanes that underpin global trade. For Indonesians, this stance reinforces national credibility as an archipelagic steward of vital routes; for Singaporeans, it affirms a shared stake in keeping the straits free, neutral and insulated from great power rivalry, even as security partnerships and global tensions test regional diplomacy.

Sources: Straits Times (2026) , Bernama (2026)

Keywords: Transit Passage, UNCLOS, Purbaya Yudhi Sadewa, Sugiono, Vivian Balakrishnan, Mohamad Hasan

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