Indonesia’s finance minister suggests imposing levy on ships transiting Malacca Strait
Purbaya said the levy could be shared by Indonesia, Malaysia and Singapore, then said the idea was not feasible under international law.
- On Wednesday, Indonesia Finance Minister Purbaya Yudhi Sadewa floated the idea of imposing a levy on ships transiting the Malacca Strait, aligning with President Prabowo Subianto's directive for Indonesia to act as a "key player" rather than a "peripheral nation."
- Purbaya quickly walked back the proposal, clarifying that Indonesia would not monetize international shipping routes, having originally cited Iran's plans in the Strait of Hormuz as inspiration for the roughly 900km-long waterway.
- Any levy would require agreement with Malaysia and Singapore, which share governance of the waterway; Singapore Foreign Minister Vivian Balakrishnan stressed that transit rights are guaranteed under international law.
- Malaysia Transport Minister Anthony Loke reaffirmed his country's commitment to freedom of navigation on Tuesday, as both Malaysia and Singapore rejected efforts to restrict transit passage through the critical trade artery.
- Foreign Minister Sugiono emphasized that Indonesia's "free and active" foreign policy avoids taking sides in geopolitical tensions, as regional leaders reaffirmed their commitment to keeping the straits open and safe.
41 Articles
41 Articles
While the war in Iran and the blockade of the Strait of Ormuz have demonstrated the vital importance of this strategic point for the world economy, Asia is moving around another narrow navigation corridor: the Strait of Malacca, the most frequent waterway in the world. Indonesia has expressed its willingness to impose tolls before going backwards. A controversy that illustrates the importance of this strait on which the major Asian economies lar…
Indonesia: No plan to impose tolls in Malacca Strait
JAKARTA — Indonesia has no plan to impose tolls on ships passing through the Malacca Strait, its finance chief said on Friday, after his comments about monetizing the strategic sea route made waves earlier this week.
An Indonesian minister is alarming by proposing a fee for ships using the Strait of Malacca.
The House of Representatives (DPR) believes that the idea of imposing tariffs on ships passing through the Strait of Malacca needs to be studied very carefully.
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