Indonesia will not impose tariffs on vessels passing through the Malacca Strait as doing so would not be consistent with international law, Foreign Minister Sugiono said on Thursday (Apr 23).
According to Indonesian media outlet Antara, Mr Sugiono was quoted during a press interview in Jakarta as saying that Indonesia respects international law, including the United Nations Convention on the Law of the Sea (UNCLOS).
“Indonesia is in a position where, as an archipelagic state, we must respect international law, particularly UNCLOS.
“Historically, UNCLOS includes an understanding and an agreement that recognises us as an archipelagic state, as long as we do not impose tolls or fees on the straits within our territory,” said Mr Sugiono.
“We hope for a free passage. As a trading nation, we support freedom of navigation. I believe that there is a commitment from many countries to create a free, neutral and mutually supportive shipping lane,” the Jakarta Globe reported him as saying.
“So no, Indonesia is in no position to (impose tolls).”
Mr Sugiono’s comments come a day after Finance Minister Purbaya Yudhi Sadewa floated the possibility of doing so.
On Wednesday, Mr Purbaya said that the idea to impose a levy was inspired by Iran’s plan to charge ships passing through the Strait of Hormuz. The strait, which connects the Persian Gulf to the Indian Ocean, handles about a quarter of the world’s seaborne oil trade.
Local media cited him as saying that the proposal aligns with President Prabowo Subianto’s directive that Indonesia behaves like a “key player” on the global economic stage.
The comments come amid concerns about the closure of the Strait of Hormuz, where restrictions have raised fears about the weaponisation of trade routes.
Malaysia’s Foreign Minister Mohamad Hasan said earlier on Thursday that any decision regarding the Malacca Strait cannot be made unilaterally and that countries in the region adopt a consensus-based approach on maritime security.
Malaysia, Singapore, Indonesia and Thailand shared a “watertight understanding” of the issue and conduct joint patrols along the strait to ensure the safe passage of ships, added Mr Mohamad.
Earlier this month, Foreign Affairs Minister Vivian Balakrishnan said in parliament that Singapore would not negotiate for safe passage through the Strait of Hormuz, as doing so would undermine fundamental principles of international law.
Dr Balakrishnan said in a CNBC interview on Wednesday that Singapore, Malaysia and Indonesia, as the littoral states of the Strait of Malacca, have a “cooperative mechanism” not to collect tolls and to keep it that way.
“We do not have tolls. All of us are trade-dependent economies. All of us know it is in our interest to keep it open,” Dr Balakrishnan said.