Indonesia, Singapore split over Malacca Strait transit fees

The Strait of Malacca

Sharp differences have emerged between senior officials in Indonesia and Singapore over a proposal to impose transit fees in the Strait of Malacca, following Iran’s push for similar charges in the Strait of Hormuz.

Singapore Foreign Minister Vivian Balakrishnan told CNBC on Wednesday that his country remains committed to freedom of navigation in the Malacca and Singapore straits, stressing that transit rights are guaranteed for all vessels and that Singapore would not support any attempt to impose fees.

By contrast, Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, signaled the possibility of introducing transit charges, citing the country’s strategic location.

Speaking at an infrastructure forum in Jakarta, he noted that ships pass through the strait without paying fees, adding that sharing potential revenues among Indonesia, Malaysia, and Singapore could generate significant income.