Legislator: Taxing Ships in the Malacca Strait Could Trigger International Conflict

JAKARTA, KOMPAS.com - Member of the Indonesian House of Representatives Commission I, Tubagus Hasanuddin, has reminded Finance Minister Purbaya Yudhi Sadewa that the proposal to impose taxes on ships transiting the Malacca Strait could potentially trigger international conflict.

“The impact would not only be on Indonesia’s reputation but also risks provoking negative responses from the international community, including the possibility of boycotts for being seen as violating international law,” Hasanuddin told Kompas.com on Friday (24/4/2026).

Therefore, the plan must be studied very carefully and comprehensively, particularly from the perspective of international law.

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

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

“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,” he said.

“Therefore, applying taxes to ships passing through could potentially conflict with those principles,” Hasanuddin explained.

In addition to the risk of breaching international law, he also warned of the potential disruption to diplomatic relations with neighbouring countries, such as Singapore and Malaysia, which are also coastal states of the Malacca Strait.

“Without support from those two countries, this policy could potentially create regional friction,” Hasanuddin stressed.

Furthermore, Hasanuddin questioned the government’s readiness in terms of monitoring and law enforcement if the policy were implemented.

According to him, managing the Malacca Strait requires strong coordination as well as adequate monitoring capacity.

“The government needs to conduct a thorough recalculation, both in terms of law, diplomacy, and operational readiness on the ground. Do not let this policy end up harming Indonesia’s position in the eyes of the world,” he concluded.

It was previously reported that the proposal to collect taxes on ships in the Malacca Strait was put forward by Finance Minister Purbaya Yudhi Sadewa.