JAKARTA: Indonesia Finance Minister Purbaya Yudhi Sadewa on Wednesday (Apr 22) floated the idea of imposing a levy on ships passing through the Malacca Strait, as part of a push to maximise the country’s strategic position along global trade and energy routes.
Local media cited Mr Purbaya as saying that the proposal aligns with President Prabowo Subianto’s directive that Indonesia should no longer see itself as a “peripheral nation”, but one that is a “key player” on the global economic stage.
“As the president has instructed, Indonesia is not a peripheral country. We sit on a strategic global trade and energy route, yet ships pass through the Malacca Strait without being charged – I’m not sure whether that’s right or wrong,” Mr Purbaya said at a symposium in Jakarta, as quoted by Detik.
The Malacca Strait is a major shipping lane for global trade and energy, but no levy has yet been imposed on transiting vessels. The strait is primarily bordered by Indonesia, Malaysia and Singapore, and connects the Indian and Pacific Oceans.
Mr Purbaya said the idea to impose a levy was inspired by Iran’s plan to charge ships passing through the Strait of Hormuz. The strait, which connects the Persian Gulf to the Indian Ocean, handles about a quarter of the world’s seaborne oil trade.
It has largely been blocked by Iran since Feb 28 when the United States and Israel launched attacks on the West Asian country. The war is currently in its eighth week.
Mr Purbaya on Wednesday said he believes a similar approach could generate significant economic value if implemented in the Malacca Strait through cooperation among the three littoral states.
“Iran is now planning to charge ships passing through the Strait of Hormuz. If we split it three ways – Indonesia, Malaysia, and Singapore – it could be quite substantial. Our stretch is the largest and the longest,” he reportedly said.
Read the full article here
