APRIL 23 — Remarks by Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, yesterday at the PT SMI 2026 Symposium in Jakarta, suggesting the possibility of introducing a levy on vessels transiting the Straits of Malacca and Singapore, have sparked renewed debate on the limits of coastal state authority over strategic waterways. While the idea may appear economically attractive, it is not supported by international law.
The governing framework is the United Nations Convention on the Law of the Sea (UNCLOS). Under this regime, the Straits of Malacca and Singapore are classified as straits used for international navigation. These waterways are subject to the right of transit passage, which guarantees ships the freedom of continuous and expeditious movement without interference.
The legal position is made clear in Articles 26 (1) and (2) of UNCLOS. Coastal states may not levy charges on foreign ships merely for passing through such straits. Charges are permissible only for specific services rendered to the vessel, such as pilotage or navigational assistance, and must be imposed without discrimination.
This distinction is fundamental. A general toll imposed on all vessels simply for transit would be inconsistent with UNCLOS. The law permits service fees, not passage tolls.
Although the proposal reflects a broader concern that littoral states do not directly benefit from the heavy volume of global shipping, the current legal framework prioritises the collective interest of maintaining open sea lanes. Transit passage is not a privilege granted by coastal states, but a right recognised under international law.
Allowing tolls in one major chokepoint would risk setting a precedent for others. If such practices were normalised, key maritime routes could become subject to unilateral financial or political conditions, undermining legal certainty and disrupting global trade.
For this reason, states bordering critical waterways, including the Straits of Malacca and Singapore, have consistently maintained that these routes must remain open. The stability of the global maritime order depends on adherence to the rules set out in UNCLOS.
This principle extends beyond the Straits of Malacca and Singapore. All straits used for international navigation falling within Part III of UNCLOS are subject to the same regime of transit passage. This includes strategic waterways such as the Strait of Hormuz, the Torres Strait, the Strait of Gibraltar, the Dover Strait, and the Bab el Mandeb. These straits cannot be converted into toll routes merely by virtue of geography.
Malaysia, Singapore, and Indonesia, as key littoral states of the Straits of Malacca and Singapore, should continue to uphold and support the spirit of international law by ensuring that these vital sea lanes remain open, neutral, and accessible to all.
They remain shared corridors of global navigation, governed by law rather than unilateral control.
* Assoc. Prof. Dr. Mohd Hazmi Mohd Rusli is the Coordinator of the International Law Unit, Faculty of Syariah and Law, Universiti Sains Islam Malaysia (USIM), and a Research Associate at the Asian Institute of International Affairs and Diplomacy, Universiti Utara Malaysia (UUM).
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
