Indonesia's President Prabowo Subianto has suggested charging a toll for ships passing through the Malacca Strait, citing the strategic importance of the waterway. The Strait of Malacca is a key route for global trade and energy supplies, with 70% of East Asia's energy needs and 70% of its trade passing through the Indonesian straits.
However, the idea has been met with resistance from Singapore and Malaysia, which have insisted that the right of transit passage is guaranteed under international law. Indonesia has previously proposed charging a toll in the mid-2000s to fund security in the strait, but the plan was shot down due to concerns from Singapore.
The proposal has been reignited by Iran's closure of the Strait of Hormuz, which has heightened fears of a similar disruption in the Malacca Strait. Indonesia has assured that it will keep the strait free, but the issue is likely to remain a contentious one in the region.
