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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.
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After the Strait of Hormus the freedom of an even more important artery of the world economy is in question: Indonesia dreams of a toll in the Strait of Malacca.
·Frankfurt, Germany
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Following the Strait of Hormuz, discussions are accelerating regarding the imposition of tolls on the Strait of Malacca. Singapore opposes Indonesia's proposal. Tolls on this route, which accounts for 40% of global trade, could have a significant impact on shipping costs and prices.
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Total News Sources24
Leaning Left1Leaning Right7Center5Last UpdatedBias Distribution54% Right
Bias Distribution
- 54% of the sources lean Right
54% Right
C 38%
R 54%
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