The Malacca Strait is a narrow sea lane between the Malay Peninsula and the Indonesian island of Sumatra. It is one of the world’s busiest maritime chokepoints and is used by commercial vessels moving between the Indian Ocean and the South China Sea.
Malacca Strait and Maritime Transit
The Malacca Strait carries about 25 to 40 per cent of global trade and a large share of East Asia’s oil and gas imports. In 2025, 102,525 transits by vessels above 300 gross tons were recorded in the strait. The strait is bordered by Indonesia, Malaysia, Singapore, and Thailand. These states are known as littoral states in maritime law and regional diplomacy.
Transit Passage under International Law
Transit passage is a legal regime under the United Nations Convention on the Law of the Sea (UNCLOS), 1982. It applies to straits used for international navigation and allows ships and aircraft to pass through such straits without prior permission from coastal states. Singapore has stated that the right of transit passage is guaranteed by international law. Malaysia has stated that decisions on the Malacca Strait require consensus among all littoral states.
Indonesia’s Proposal and Clarification
On 22 April 2026, Indonesia’s Finance Minister Purbaya Yudhi Sadewa proposed a levy on commercial vessels transiting the Malacca Strait. The proposal was linked to state revenue generation and to a comparison with Iran’s plan for the Strait of Hormuz. On 23 April 2026, Indonesia’s Foreign Minister Sugiono stated that Indonesia would not impose tariffs on vessels in the Malacca Strait. The statement placed the proposal outside Indonesia’s formal maritime policy position.
Strait of Hormuz Comparison
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is another major global energy chokepoint and has been used in discussions on maritime transit charges.
Last Modified: April 24, 2026