Indonesia’s Proposed Tolls Threaten Key Australian Shipping Lane in Malacca Strait

Indonesia’s finance minister has suggested that the country could impose tolls on ships passing through the Strait of Malacca, one of the world’s busiest shipping lanes, before quickly retracting the proposal.

Purbaya Yudhi Sadewa made the comment during a symposium in Jakarta on Wednesday, stating that Indonesia, situated on a strategic global trade route, should consider leveraging its geographical position for financial gain, similar to Iran’s approach in the Strait of Hormuz.

He noted that ships currently pass through the Strait of Malacca without being charged and questioned whether this arrangement was appropriate, saying, “Yet ships pass through the Malacca Strait without being charged — I’m not sure whether that’s right or wrong.”

However, shortly after raising the idea, the minister walked back his remarks, saying, “If only it could be like that,” indicating that while the concept had been floated, it was not a formal policy proposal under active consideration.

The suggestion prompted immediate concern from Australia, which relies heavily on the Strait of Malacca for its international trade, with officials urging for the preservation of freedom of navigation in the vital waterway.

Singapore, which also borders the strait, has previously rejected similar proposals, with its foreign minister Vivian Balakrishnan stating that passage through the Malacca and Singapore straits must remain free for all and that Singapore would not support any efforts to restrict it.

The Strait of Malacca connects the Indian and Pacific Oceans and carries more than 40 percent of the world’s seaborne trade, making it a critical artery for global commerce and energy supplies.

Indonesia’s position along the strait gives it significant influence over one of the most important maritime corridors in the world, though any move to impose fees would face strong opposition from regional stakeholders and international shipping interests.

The debate has been influenced by recent developments in the Strait of Hormuz, where Iran has sought to levy fees on vessels passing through, prompting broader discussions about whether other strategic waterways could adopt similar models.