Inspired by Iran, Purbaya Has Idea to Levy Tax on Malacca Strait Passage

Finance Minister Purbaya Yudhi Sadewa has revealed that the idea of imposing a tariff or tax on vessels transiting the Malacca Strait crossed his mind, similar to proposals by the Iranian government regarding the Strait of Hormuz. According to him, this concept is not implausible given Indonesia’s strategic advantage in being at the crossroads of global trade and energy routes. “As per the president’s directive, Indonesia is not a peripheral nation; we are on the world’s strategic trade and energy pathways,” Purbaya stated in the Sudirman area of South Jakarta on Wednesday, 22 April 2026. “But ships passing through the Malacca Strait—we don’t charge them. Is that right or wrong?” he questioned. Purbaya opined that if Indonesia, Malaysia, and Singapore could collaborate to impose a tariff or tax on ship passages in the Malacca Strait, it would undoubtedly benefit all three countries. “So if we split (the Malacca Strait tax) three ways—Indonesia, Malaysia, Singapore—that would be substantial, wouldn’t it? We have the largest, longest stretch of the route,” Purbaya remarked. However, Purbaya admitted that the idea would be extremely difficult and challenging to implement or realise in practice. After all, Indonesia’s portion of the waterway in the Malacca Strait is the largest compared to its neighbouring countries. “Singapore is small, Malaysia too; we could split it two ways if possible, but it’s not like that,” Purbaya said. “So with all our wealth, we must not think defensively. We have to start playing offensively, but in a measured way,” he added.