I wasn’t being serious: Indonesian minister backtracks on proposed toll for ships in Straits of Malacca

Indonesian Finance Minister Purbaya Yudhi Sadewa has backtracked on his comments about introducing a toll for ships transiting through the Straits of Malacca.

Purbaya floated the suggestion on Apr. 22 while speaking at a financial symposium in Jakarta, reported the Jakarta Post.

At the time, Purbaya said, “If we split [the levy] three ways between Indonesia, Malaysia and Singapore, that could be quite something, right?”, adding, "If only it could be like that, but that’s not the case.'

Shortly after, on Apr. 24, Purbaya retracted his statement in front of reporters in Jakarta, according to the Jakarta Globe.

He was quoted as saying, "I wasn’t being serious at the time", and that the Indonesian government "never had such plans".

Cited UNCLOS

Purbaya made the initial statements in response to Iran's move to charge ships a toll to transit the Strait of Hormuz, reported the Jakarta Post.

According to the Jakarta Globe, Purbaya backtracked on the idea and cited the United Nations Convention on the Law of the Sea (UNCLOS).

He said that, as a signatory, Indonesia could not impose levies on transiting vessels except for the services.

On Apr. 23, Indonesian Foreign Minister Sugiono made a clarification in regards to Purbaya's controversial statement.

Sugiono said, "I believe that there is a commitment from many countries to create a free, neutral, and mutually supportive shipping lane. So no, Indonesia is in no position to [impose tolls]. That’s wrong."

According to the Jakarta Globe, Ex-Deputy Foreign Minister Dino Patti Djalal said a Straits of Malacca levy could be "disastrous".

“Going forward, I respectfully remind the government officials to exercise caution and wisdom in making public statements that may generate unnecessary concern.”

Singapore's Foreign Affairs Minister Vivian Balakrishnan has previously said that as a matter of principle, and aligning with Singapore's long standing and consistent position, ships have a right of passage and must not be expected to pay a toll or apply for a license.

Floats plan to improve services and grow state revenue

Purbaya also floated a plan to improve ship-related services, including refuelling in the Sunda or Lombok Strait.

He added that many ships prefer to anchor in Singapore, and that the two Indonesian waterways he mentioned are the deep-water alternatives to the Straits of Malacca.

"We have opened up the Sunda Strait and Lombok Strait maritime routes. We can optimise the services that the government can provide there to grow [state] revenue. So we won’t be like gangsters that demand money [from ships] that are only passing."

Top photo from Wikipedia & Canva