Time to Cash In? Indonesia Adopts Iran's Strategy to Generate Revenue from the Malacca Strait
Foreign Minister Purbaya Yudha Sadewa proposed implementing a toll similar to what Iran does in the Strait of Hormuz for ships passing through the Malacca Strait—which borders Indonesia, Malaysia, and Singapore.
"Indonesia isn't a fringe player. We're on the strategic global trade and energy route. Ships are passing through without any fees—I'm not sure if that's right," he mentioned at a symposium, speculating that if split three ways, "That could be a pretty hefty amount."
He then quickly walked back his statement, saying, "If only it could be like that."
President Prabowo Subianto previously highlighted that Indonesia controls 70% of East Asia's energy flow: "Do we realize how crucial we are?"
Indonesia, Malaysia, and Singapore jointly manage the Malacca Strait under international law (UNCLOS).
A critical point—with a narrowest width of 2.8 km—links the Indian Ocean to the South China Sea and:
1. handles about 30% of global maritime trade
2. transports 23–25 million barrels of oil every day
3. supplies around 80% of China's crude oil imports
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