Indonesia’s Malacca Levy Idea Sparks Legal, Boycott Risks
Jakarta. A proposal to charge vessels transiting the Strait of Malacca is drawing sharp warnings from lawmakers, who say it risks breaching international law, triggering diplomatic backlash, and even sparking a global boycott.
Senior lawmaker Tubagus Hasanuddin said imposing levies on one of the world’s busiest natural sea lanes could create new geopolitical tensions, noting the strait has long been open to international navigation. He stressed that, unlike the Suez Canal or Panama Canal, both man-made and governed by specific treaties, the Malacca Strait is a natural passage subject to global maritime law.
“The impact would not only affect Indonesia’s reputation, but could also trigger negative responses from the international community, including the possibility of a boycott, as it may be seen as violating international law,” Hasanuddin said in Jakarta on Friday.
The member of the House commission on defense and foreign affairs pointed to the United Nations Convention on the Law of the Sea (UNCLOS), which guarantees the right of transit passage. Article 38 ensures ships can pass through straits without obstruction, while Article 44 prohibits littoral states from hampering or delaying such passage.
Hasanuddin added that UNCLOS allows freedom of navigation as long as vessels do not engage in unlawful activities, such as illegal economic operations, unauthorized surveys, or research. Taxing passing ships, he warned, could contradict these principles.
“The government needs to carefully recalculate this plan, from legal and diplomatic considerations to operational readiness on the ground,” he said.
The criticism follows remarks by Finance Minister Purbaya Yudhi Sadewa, who floated the idea as part of a broader push to better capture value from Indonesia’s position along a key global trade and energy corridor, in line with President Prabowo Subianto’s ambition to elevate the country’s role in global commerce. Purbaya said any levy would require coordination with neighboring states, noting Indonesia holds the largest share of the strait, and pointed to discussions around the Strait of Hormuz as a possible reference.
However, Foreign Minister Sugiono has since clarified that Indonesia will not impose such tariffs, citing non-compliance with UNCLOS.
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