Indonesian Political, Business & Finance News

Indonesia Demands Guarantees for Shipping in the Strait of Hormuz

| | Source: MEDIA_INDONESIA Translated from Indonesian | Politics
Indonesia Demands Guarantees for Shipping in the Strait of Hormuz
Image: MEDIA_INDONESIA

The Indonesian government is faced with a policy dilemma, and none of the options are truly comfortable.

Indonesia’s government has asserted that freedom of navigation must be maintained in the Strait of Hormuz, especially with the potential resumption of transit activities in the area following the ceasefire between the United States and Iran.

“In principle, we request that freedom of navigation be respected and in accordance with international law,” said Spokesperson for the Indonesian Ministry of Foreign Affairs (Kemlu) Vahd Nabyl A. Mulachela during a media briefing in Jakarta on Wednesday (8/4).

Nabyl made this statement in response to demands from conflicting parties in the Persian Gulf to impose transit fees in the Strait of Hormuz.

According to Nabyl, the recently agreed ceasefire between the US and Iran increasingly opens opportunities for the recovery of shipping activities in the Strait of Hormuz, which had been halted due to the conflict.

He believes that this development will not only benefit Indonesia’s interests but also those of the Gulf region and the entire world.

“With this development, we hope it can evolve into a more permanent conflict resolution that has a positive impact on our interests, both in terms of freedom of navigation and for the future,” said Nabyl.

The idea of imposing transit fees in the Strait of Hormuz was raised by both Iran and the US during their war.

At the end of March, Alaeddin Boroujerdi, a member of Iran’s National Security and Foreign Policy Commission in Parliament, stated that his side plans to establish new shipping regulations in the Strait of Hormuz.

Under these new regulations, Tehran will guarantee shipping security for vessels, but with the imposition of transit fees. No vessel will be able to pass through the Strait of Hormuz without permission from Iran, he said.

Then, US President Donald Trump on Monday (6/4) said it would be better for the US to collect transit fees from ships passing through the Strait of Hormuz rather than Iran doing so.

“What if we collect the transit fees ourselves? … I think we should do it rather than them,” Trump said in response to a journalist’s question about the possibility of Iran imposing tariffs on ships passing through the Strait of Hormuz.

Australia added that it is working with international partners to ensure the resumption of shipping through the Strait of Hormuz.

Iran’s Foreign Minister Abbas Araghchi confirmed the opening of the shipping route in the Strait of Hormuz for two weeks.

Turkey expressed its support for the temporary ceasefire agreed between the United States (US) and Iran, amid rising tensions in the Middle East region.

The two-week ceasefire plan between the United States (US) and Iran indeed provides relief to global markets, as reflected in the decline in oil prices.

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