Gotrade News - Indonesia's Finance Minister Purbaya Yudhi Sadewa floated the idea of imposing a tax on ships transiting the Strait of Malacca. He presented the concept at the PT SMI 2026 Symposium in Jakarta on Wednesday.
Purbaya drew inspiration from Iran's proposed levy on vessels in the Strait of Hormuz. "Indonesia sits on a strategic global trade and energy corridor, yet ships pass through the Strait of Malacca without any charge," he said.
Key Takeaways:
- Indonesia's finance minister proposes taxing ships in the Strait of Malacca, inspired by Iran's Hormuz model
- Revenue to be split three ways between Indonesia, Malaysia, and Singapore, with Indonesia getting the largest share
- Significant diplomatic challenges acknowledged, approach must be "measured"
Under the proposed framework, revenue from the levy would be divided among the three littoral states. Indonesia, Malaysia, and Singapore would each receive a share of the proceeds.
Indonesia would potentially receive the largest portion as it controls the longest segment of the Strait of Malacca. "If we split it three ways, that's quite substantial," Purbaya said, referring to the revenue potential.
The proposal aligns with President Prabowo Subianto's vision of leveraging Indonesia's strategic position. Prabowo has emphasized that Indonesia sits at the crossroads of global trade and energy routes.
Implementation Challenges
Purbaya acknowledged significant geopolitical challenges in realizing this concept. Coordination among the three littoral states requires complex and measured diplomacy.
"We must think offensively while maintaining fiscal credibility," Purbaya stated. This approach reflects a shift toward more aggressive economic strategy in leveraging geographic advantages.
Meanwhile, Foreign Minister Sugiono noted that several nations have rejected the ship levy scheme at the Strait of Hormuz. International resistance to similar models could be a major obstacle for Indonesia's plan.
