Indonesia's Leverage: Strait of Malacca

It is important to note that imposing levies on the Strait of Malacca falls outside Finance Minister Purbaya's jurisdiction so his opinion /intention in this matter does not count. Also, remember such a move could provoke international retaliation through trade embargoes, sanctions, or increased tariffs. Indonesia must also consider whether it is prepared to upset China, the primary beneficiary of this Malacca Strait.

This is what the Indonesian foreign Minister said.
"Indonesia will not impose a levy on vessels transiting the Strait of Malacca, as doing so would contravene international law, said Foreign Minister Sugiono on April 23."

 
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Another article discussing this very same issue: Indonesia sits adjacent to "the default corridor for trade between East Asia and the West".

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Pepe Escobar has gotten involved. Love his work or hate it, he has something to contribute. 🤔

Beijing is fully aware of the stakes. Most of all, Iran – Eurasia’s prime crossroads - was and remains the New Silk Roads/BRI overland bypass, the connectivity corridor that allows China to really put “Escape from Malacca” in practice. Next step for Iran is to solve the tech puzzle of pumping serious amounts of crude to China via several Pakistani connectivity corridors.
Indonesia will be walking on a razor’s edge: how to manage an empire out of control while not antagonizing China.
 

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