Indonesia rules out tax on ships passing Malacca Strait

 Indonesia has no plans to impose taxes on vessels transiting the Malacca Strait, Finance Minister Purbaya Yudhi Sadewa said, dismissing reports he had proposed levies on one of the world’s busiest shipping lanes.

The clarification follows speculation that Jakarta was considering charging ships passing through the strategic waterway, a key route for global trade linking the Indian Ocean and South China Sea.

“That was not in a serious context. We have never planned to collect such a tax,” Purbaya told reporters in Jakarta on Friday.

He said Indonesia remains committed to the United Nations Convention on the Law of the Sea (UNCLOS), which guarantees freedom of navigation in international waters, including exclusive economic zones.

Purbaya said he was familiar with the convention from his previous role overseeing maritime sovereignty and energy coordination between May 2018 and September 2020.

Under UNCLOS, countries must allow vessels to pass through designated maritime zones and ensure safe navigation, he said, referring to obligations tied to Indonesia’s exclusive economic zone.

“In terms of freedom of navigation, we are required to allow ships to pass through our EEZ and ensure security in those waters,” Purbaya said.

The finance minister stressed that Indonesia would not violate international law, noting the country has ratified UNCLOS and remains bound by its provisions.

“We have ratified UNCLOS and will uphold the law we have signed,” he said.

Earlier, Foreign Minister Sugiono also said Indonesia would not impose tariffs in the Malacca Strait, reinforcing the government’s stance on maritime governance.

He reiterated that Indonesia respects international law, particularly UNCLOS, which governs navigation rights and obligations in global waters.

The Malacca Strait is recognized as an international shipping lane under Articles 37, 38, and 39 of UNCLOS, allowing lawful transit passage for vessels.

Sugiono said the convention affirms Indonesia’s status as an archipelagic state, provided it does not impose charges on transit through its straits.

He added that Indonesia supports freedom of navigation and aims to ensure smooth, secure, and mutually beneficial maritime traffic through its waters.