MP Responds to Tax Issue: Malacca Strait Unlike Suez Canal

Jakarta (ANTARA) - Member of the Indonesian House of Representatives Commission I, TB Hasanuddin, stated that the Malacca Strait is a natural waterway traditionally used for international shipping, unlike the Suez or Panama Canals, in response to discussions on implementing taxes in that sea route. He explained that the Suez or Panama Canals are artificial routes regulated by special agreements. According to him, the discourse on applying taxes in the strait could potentially trigger new conflicts. “The impact would not only be on Indonesia’s reputation but also risk negative responses from the international community, including the possibility of boycotts for being seen as violating international law,” Hasanuddin said in Jakarta on Friday. He believes the government needs to consider the provisions of the United Nations Convention on the Law of the Sea (UNCLOS) 1982. Article 38 of UNCLOS emphasises that ships have the right to transit passage in strait territories and must not be impeded or disturbed. Furthermore, Article 44 states that coastal states are not permitted to delay the passage of ships transiting. He added that UNCLOS 1982 guarantees freedom of passage for ships as long as they do not engage in violating activities, such as illegal economic activities, surveys, or research without permission. Therefore, imposing taxes on passing ships could potentially conflict with these principles. “The government needs to conduct a thorough recalculation, both from legal, diplomatic, and operational readiness perspectives in the field,” he said. Previously, Indonesian Finance Minister Purbaya Sadewa had raised the possibility of levying tariffs on ships passing through the strait. However, Indonesian Foreign Minister Sugiono stated that Indonesia will not impose tariffs in the Malacca Strait because it does not comply with the UN Convention on the Law of the Sea (UNCLOS).