Indonesian Political, Business & Finance News

Dave Laksono on Ship Tax in Malacca Strait: Must Be Studied Comprehensively

| Source: TEMPO_ID Translated from Indonesian | Politics

Deputy Chair of Commission I of the Indonesian House of Representatives, Dave Laksono, has called on the government to review and exercise caution in implementing taxes on the Malacca Strait, which is an international shipping route.

He stated that government policies must be oriented towards regional stability and maintaining Indonesia’s reputation as a credible and responsible maritime nation.

This Golkar Party politician emphasised that the Malacca Strait is one of the world’s most vital international shipping routes. However, he reminded that this narrow waterway concerns not only Indonesia’s interests but also those of the global community.

“Any discourse on imposing taxes or levies on ships passing through must be studied comprehensively and carefully, particularly by considering international maritime law provisions, including the principle of innocent passage and transit passage as regulated in UNCLOS,” Dave told Tempo on Friday, 24 April 2026.

Indonesia must also always adhere to the principle of free and active foreign policy. Dave reminded that this principle requires every cross-border impacting policy to prioritise dialogue with neighbouring countries, especially Singapore and Malaysia, to avoid sparking tensions in the region.

Commission I of the Indonesian House of Representatives believes that national interests can still be safeguarded through a measured and balanced approach. Dave said the government could strengthen regional cooperation, ensure the sustainability of international trade routes, and create creative solutions to increase state revenue without sacrificing good relations with strategic partners.

“This plan should be studied in depth by involving all stakeholders. We remain optimistic that Indonesia can balance fiscal interests with its diplomatic responsibilities, thus continuing to play a role as a pillar of stability, trust, and cooperation in the region,” he said.

The idea of taxing ships passing through the Malacca Strait was first proposed by Finance Minister Purbaya Yudhi Sadewa. He mentioned the possibility of Indonesia collecting taxes from ships passing through the waters of the Malacca Strait, a strategic trade route that falls within the areas of Indonesia, Singapore, and Malaysia. He said this step could be taken similarly to the Strait of Hormuz, which was blockaded by Iran.

The statement was made by Purbaya when speaking at the PT SMI Symposium in Jakarta on Wednesday, 22 April 2026. “Now Iran charges ships passing through the Strait of Hormuz. If we divide it by three—Indonesia, Malaysia, Singapore—it would be substantial, right? Ours has the largest and longest stretch,” he said.

According to Purbaya, if this step is taken, Indonesia could benefit more than the other countries. “If it could be like that, but it’s not quite so,” he said.

With the wealth possessed by Indonesia, Purbaya stated that Indonesia should not be defensive but offensive yet measured.

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