Indonesia's Leverage: Strait of Malacca

[serious_fun]

Indo to demand a Malacca Strait levy?

Indonesia Finance Minister hinted at such a thing being considered...

but then denies that Indo would impose such a thing.

 

[Balifrog]

Indo to demand a Malacca Strait levy?

Indonesia Finance Minister hinted at such a thing being considered...

but then denies that Indo would impose such a thing.

When there is money to be made they can't resist....
Valid for all SEA.....

 

[pantaiema]

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."

No unilateral moves on Strait of Malacca, says Malaysia

Malaysia's foreign minister' remarks came after Indonesian finance minister Purbaya Yudhi Sadewa suggested that countries along the strait could impose a levy on ships passing through it. Read more at straitstimes.com. Read more at straitstimes.com.

www.straitstimes.com

 

[Balifrog]

as doing so would contravene international law,

Who cares about international laws ?

US, Israel, Iran ?

 

[serious_fun]

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

 

[serious_fun]

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.

 

[serious_fun]

This piece almost seems to be a response to Escobar's piece on Sputnik (post #26 above).

...Jakarta positions itself as an exemplar for other ASEAN nations: a country that can maintain a deep military partnership with the US without sacrificing its dominant economic relationship with China.

 

[serious_fun]

Claims that the 'American' Hormuz blockade needs control of Malacca in order to work.

Executing a military operation in congested waters near Indonesia’s exclusive economic zone would be diplomatically risky. And even if the US Navy succeeded, the ship-to-ship market would just pull up stakes and move to another archipelago (there are literally thousands).

This is why the Pentagon wants a blank check to operate in Indonesia. Trump needs to salvage his failing blockade by substituting air superiority for local naval control. If President Prabowo lets him, the resulting airstrikes could cause a humanitarian and environmental catastrophe.

The navigation of Iranian VLCCs through the Lombok Strait portends a new era of American aggression in Indonesia. Trump has staked enormous political capital on this war, so any market that exposes the failures of his blockade will be treated as an existential threat.

 

[serious_fun]

The Jakarta Post mentions Malaysian interests re: the Malacca chokehold.

the struggle over Strait of Malacca, the ringgit, rice prices, fuel subsidies and the freedom to remain nonaligned in a polarized world is very much ours.