Indonesia minister suggests levy on ships passing through Strait of Malacca
Amid ongoing tensions over tolls in the Strait of Hormuz, Indonesia’s Finance Minister Purbaya Yudhi Sadewa has suggested introducing a levy on vessels passing through the Strait of Malacca.
The idea goes against the long-standing stance of Singapore and Malaysia, both of which have emphasised keeping the key shipping route open and toll-free.
Source: dronepicr on Wikimedia Commons
Indonesia Finance Minister raises possibility of levy
According to the Jakarta Globe, Mr Purbaya brought up the idea at a symposium on Wednesday (22 April).
He pointed out that Indonesia sits along a major global trade and energy route, yet ships using the Malacca Strait are not currently charged.
Source: Institute for Supply Management
The suggestion is said to align with Indonesian President Prabowo Subianto’s broader push for the country to play a more central role in global trade.
Mr Purbaya also referenced discussions in Iran about charging vessels passing through the Strait of Hormuz.
As the strait is shared with Singapore and Malaysia, he noted that any such move would need coordination with neighbouring countries.
He also highlighted that Indonesia controls the largest portion of the waterway.
Source: BeritaSatu via Jakarta Globe
For now, the proposal remains at an early stage and is not expected to be implemented anytime soon due to the complexities involved and likely resistance from the global shipping industry.
Singapore reiterates position on keeping strait toll-free
The Strait of Malacca is one of the busiest shipping lanes in the world, linking the Indian and Pacific oceans.
Singapore has maintained that passage through the strait should remain free and open to all users.
Speaking to CNBC on Wednesday, Foreign Minister Vivian Balakrishnan said the three littoral states — Singapore, Malaysia, and Indonesia — all have an interest in keeping the route open.
We do not have tolls. All of us are trade dependent economies. All of us know it is in our interest to keep it open.
Source: Vivian Balakrishnan on Facebook, for illustration purposes only
The CNBC interviewer also asked Dr Balakrishnan whether Singapore could be forced to choose between China and the United States (US) in the future.
“To quote Mr Lee Kuan Yew, we will refuse to choose,” he said, adding that Singapore would not hesitate to say no to either Washington or Beijing if needed.
We will not participate in any attempts to close or interdict or to impose tolls in our neighbourhood.
Malaysia emphasises free flow of trade
Malaysia has likewise pushed back against comparisons with the Strait of Hormuz.
On Sunday (19 April), Defence Minister Datuk Seri Mohamed Khaled Nordin said the situation in Hormuz should not be replicated in the Malacca Strait, noting that the circumstances are different.
Source: Malay Mail
He added that Malaysia, Singapore, and Indonesia remain committed to ensuring the smooth flow of global trade and upholding international law in the area.
Separately, Transport Minister Anthony Loke reaffirmed Malaysia’s stance on safeguarding freedom of navigation and transit during a roundtable held in Singapore as part of Singapore Maritime Week 2026.
He attended a closed-door discussion on the Strait of Malacca, and also visited the Woodlands North station for the Rapid Transit System (RTS) Link project.
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Featured image adapted from dronepicr on Wikimedia Commons.
