Foreign Minister Sugiono has stated that the Indonesian government\ncannot impose levies, such as taxes, on the strategic shipping route of\nthe Malacca Strait. This is because it would not align with the United\nNations Convention on the Law of the Sea (UNCLOS) and the principle of\ninternational freedom of navigation.<\/p>\n
According to Sugiono, Indonesia adheres to and recognises UNCLOS as\nthe foundation of international maritime law, which governs the status\nof archipelagic states and strategic shipping lanes, making the\nimposition of taxes in the Malacca Strait impossible.<\/p>\n
\u201cSo, no. Indonesia is not in a position to do that (impose tariffs in\nthe Malacca Strait),\u201d Sugiono explained when met at the Pancasila\nBuilding, Ministry of Foreign Affairs, Central Jakarta, on Thursday, 23\nApril 2026.<\/p>\n
Furthermore, Sugiono noted that Indonesia supports the freedom of\nnavigation and the smooth flow of neutral and mutually supportive\ntrade.<\/p>\n
\u201cWe also hope for free passage, and I think that is a commitment of\nmany countries to create a free, neutral, and mutually supportive\nshipping lane, so Indonesia is not in a position to do that; it\u2019s not\nright,\u201d he emphasised.<\/p>\n
Finance Minister Purbaya Yudhi Sadewa had considered imposing taxes\non the shipping route in the Malacca Strait, similar to what Iran\nintends to do in the Strait of Hormuz. He stated that such a policy\ncould be feasible, given Indonesia\u2019s possession of strategic waters, as\noften mentioned by President Prabowo Subianto.<\/p>\n
\u201cAnd as per the president\u2019s directive, Indonesia is not a peripheral\ncountry; we are on the world\u2019s strategic trade and energy routes, but\nships passing through the Malacca Strait\u2014we don\u2019t charge them; I don\u2019t\nknow if that\u2019s right or wrong?\u201d Purbaya said at the PT SMI 2026\nSymposium in Jakarta on Wednesday (22\/4\/2026).<\/p>\n
Purbaya believes that the concept of taxing the world\u2019s trade route\nin the Malacca Strait could be implemented through collective\ncooperation with Malaysia and Singapore, which are also in the\nregion.<\/p>\n
\u201cNow Iran wants to charge ships passing through the Strait of Hormuz,\nthey say. If we divide it three ways\u2014Indonesia, Malaysia, Singapore\u2014that\nwould be substantial, right? Ours has the largest, longest stretch,\u201d\nPurbaya remarked.<\/p>\n
Nevertheless, he acknowledged that the concept of taxing the route\nmay not necessarily be feasible and is not easy to realise. Although,\nthe largest portion of the waterway in the Malacca Strait lies within\nIndonesian territory.<\/p>\n
\u201cSingapore is small; Malaysia and us split it in half. If it could be\nlike that, but it\u2019s not. So, with all our wealth, we must not think\ndefensively; we have to start playing offensively. But still measured,\u201d\nPurbaya stated.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/foreign-minister-asserts-indonesia-cannot-impose-taxes-on-malacca-strait-heres-why-1777013717", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }