TB Hasanuddin: Malacca Strait Tax Idea Could Spark International Conflict

Jakarta – 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.

He made this remark in response to Finance Minister Purbaya Yudhi Sadewa’s idea of applying taxes on that waterway route.

He said that the Suez or Panama Canals are artificial routes regulated by special agreements. According to him, the discourse on applying taxes in the strait has the potential to create new conflicts.

“The impact is not only on Indonesia’s reputation but also potentially triggers negative responses from the international community, including the possibility of boycotts for being considered a violation of international law,” said TB Hasanuddin on Friday, 24 April 2026.

According to him, the government needs to pay attention to the provisions of the United Nations Convention on the Law of the Sea (UNCLOS) 1982. In Article 38 of UNCLOS, it is emphasised that ships have the right to transit passage in strait territories and must not be impeded or disturbed.

In addition, Article 44 also 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, the application of taxes on transiting ships has the potential to contradict those principles.

“The government needs to carry out a thorough recalculation, both from legal, diplomatic, and operational readiness aspects in the field,” he said.

Previously, Indonesian Finance Minister Purbaya Sadewa had floated the possibility of imposing tariffs on ships passing through the strait.

However, Foreign Minister Sugiono stated that Indonesia would not impose tariffs in the Malacca Strait because it is not in accordance with the UN Convention on the Law of the Sea (UNCLOS). (Ant)