No charge for now: Indonesia backs down on Malacca Strait toll plan

Indonesia on Friday said that it has no plans to impose tolls on ships passing through the busy Malacca Strait, in attempts to calm concerns after recent remarks by its finance minister Purbaya Yudhi Sadewa sparked debate about monetising one of the world’s most important sea routes.

Sadewa himself clarified that the government would not introduce tariffs in the strait and would follow international law. His comments reinforced an earlier statement by Indonesia’s foreign minister, who also ruled out any such move.

The clarification came after Purbaya suggested earlier this week that countries could consider charging ships using strategic waterways. Although he noted such a system would not be feasible, the remarks drew attention across the region, especially given rising tensions over global shipping routes.

Why the Malacca Strait matters?

The Malacca Strait is one of the busiest and most critical shipping lanes in the world. Stretching about 900 km, it connects East Asia with West Asia and Europe, making it a key route for global trade and energy supplies.

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More than 102,000 vessels passed through the strait in 2025, up from around 94,000 a year earlier. The route is often described as the world’s most important oil transit chokepoint.

Recent disruptions around the Strait of Hormuz, have raised concerns about the vulnerability of such narrow sea passages. Any restrictions in the Malacca Strait could have wide-ranging global economic consequences.

Legal limits and regional pushback

Indonesia has stressed that it will abide by the United Nations Convention on the Law of the Sea, which guarantees the right of ships to pass through international straits used for navigation.

Neighbouring countries have also made their positions clear. Singapore and Malaysia have both opposed any attempt to impose tolls, saying such moves would violate international law and disrupt trade. Singapore’s foreign minister, Vivian Balakrishnan, said transit rights must be protected and no country should act unilaterally.

Indonesia’s own foreign minister reiterated that Jakarta is committed to keeping the strait open and free for global shipping.

A recurring idea

The idea of charging ships using the strait is not new. According to a report in The Economist, in the mid-2000s, Indonesia floated a similar proposal to fund anti-piracy efforts in the region. At the time, the plan was rejected, particularly by Singapore, and instead regional countries increased joint patrols to improve security.

Indonesia’s strategic geography gives it control over several key sea routes. The report estimates that blocking the Malacca Strait alone could force about 21 per cent of global seaborne trade to reroute, adding roughly 1,200 km to shipping journeys. If other Indonesian straits were also affected, the disruption could be even greater.

Debate likely to continue

While Indonesia has ruled out tolls for now, the discussion highlights growing awareness of how critical maritime chokepoints are to the global economy. Comments by Indonesia's President Prabowo Subianto have also underlined the country’s strategic importance, noting that a large share of East Asia’s trade and energy flows through regional waters.

For now, the government appears committed to maintaining open access in line with international law. However, analysts say the issue could resurface, especially as geopolitical tensions rise and countries look for ways to secure or benefit from key global trade routes.