Speaking at a financial symposium in Jakarta, Purbaya Yudhi Sadewa acknowledged that although the strait was a key global trade and energy route, monetising it as a revenue source is neither easy nor appropriate.

“Even if it were possible, the reality is otherwise,” he said, referring to legal, geopolitical, and practical constraints, reported Berita Harian.

Purbaya had briefly suggested that Indonesia could follow Iran’s move to consider charging vessels passing through the Strait of Hormuz.

Purbaya said any similar move in the Straits of Malacca would require consultation with Malaysia and Singapore as the other coastal states along the waterway.

“If we divide it three ways between Indonesia, Malaysia, and Singapore, the amount would be significant, right?” he joked.

However, he quickly withdrew the idea and stressed that Indonesia would not seek to commercialise international shipping lanes simply because it could.

The 900km strait runs between Sumatra in Indonesia and Peninsular Malaysia, narrowing into the Singapore Strait between Singapore and Indonesia.

It carries roughly 40% of global trade, including most oil shipments from the Middle East to Asian economic centres such as China, Japan, and South Korea.

The idea to charge vessels for passage through the waterway runs counter to the position taken by Malaysia and Singapore.

Both countries have said they are committed to ensuring freedom of navigation and transit in the Straits of Malacca, in line with international law.