Legislator: Malacca Strait Not Like Suez and Panama Canals That Can Be Taxed

JAKARTA, KOMPAS.com - Member of the Indonesian House of Representatives Commission I, TB Hasanuddin, emphasised that the Malacca Strait cannot be equated with the Suez Canal or the Panama Canal, where taxes can be levied on passing ships.

He made this statement in response to the discourse from Finance Minister Purbaya Yudhi Sadewa on implementing taxes for ships crossing the Malacca Strait.

“From the perspective of international law, the Malacca Strait is a natural waterway that has traditionally been used for international shipping, unlike the Suez or Panama Canals, which are artificial and regulated through special agreements,” said TB Hasanuddin on Friday (24/4/2026).

According to TB Hasanuddin, Article 38 of UNCLOS stipulates that ships have the right to transit passage in strait territories and must not be impeded or disturbed.

Additionally, Article 44 states that coastal states are not permitted to delay the passage of ships transiting.

“UNCLOS guarantees freedom of passage as long as the ships do not engage in violating activities, such as illegal economic activities, surveys, or research without permission,” he said.

“Imposing taxes on passing ships has the potential to contradict these principles,” stated the PDI-P politician.

He also warned that such a policy could lead to serious global consequences, from disrupting Indonesia’s reputation to negative responses from the international community.

“There is even the potential for boycotts if it is deemed to violate international law,” he said.

He emphasised that without support from Singapore and Malaysia, the policy of taxing the Malacca Strait could instead create friction in the region.

He urged the government to study the matter thoroughly before making such a decision, including from legal, diplomatic, and operational readiness aspects.

“Do not let this policy harm Indonesia’s position in the eyes of the world,” said TB Hasanuddin.