Indonesia Floats Ship Tax in Malacca Strait as Singapore Defends Free Passage
Jakarta. Indonesia is exploring the possibility of imposing a levy on vessels transiting the strategically vital Strait of Malacca, as the government looks to monetize one of the world’s busiest shipping lanes.
Finance Minister Purbaya Yudhi Sadewa said the proposal aligns with President Prabowo Subianto’s directive to position Indonesia as a central player in global trade rather than a peripheral economy.
“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,” Purbaya said at a symposium hosted by state-owned infrastructure financier Sarana Multi Infrastruktur in Jakarta on Wednesday.
The Malacca Strait — bordered by Indonesia, Malaysia, and Singapore — is a critical artery for global trade, linking the Indian and Pacific oceans. It is widely considered a major economic chokepoint, comparable to the Strait of Hormuz, the Suez Canal, and the Panama Canal.
Purbaya suggested that any levy would need to be implemented through coordination with neighboring countries, adding that Indonesia controls the largest share of the waterway. He also referenced discussions in Iran about charging vessels passing through Hormuz as a possible model.
Read More: Indonesian Tankers Cancel Exit After Strait of Hormuz is Closed Again
Singapore Says Malacca Strait Passage Must Stay Free
However, the idea runs counter to Singapore’s position. Foreign Minister Vivian Balakrishnan said passage through the Malacca and Singapore straits must remain open and free to all users.
“The right of transit passage is guaranteed for everyone,” Balakrishnan said at the Singapore Maritime Week 2026, as quoted by The Edge. “We will not participate in any attempts to close or interdict or to impose tolls in our neighbourhood.”
Purbaya acknowledged that the proposal remains at an early stage and is unlikely to be implemented soon, given the complexity of securing agreement among the littoral states and the potential pushback from global shipping interests.
“With all the resources we have, we should not think defensively. We need to start thinking more offensively, but in a measured way,” Purbaya said.
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