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The Strait of Malacca is one of the busiest maritime Sea Lanes of Communications (SLOCs) in the world because of its importance in transporting goods. However, like any other straits, Strait of Malacca also do not escape from maritime criminal attack. As a Littoral States to Strait of Malacca, Malaysia and Indonesia have taking initiatives to improve the security in that area. This paper will attempt to explain the priorities and challenges of Malaysia and Indonesia to cooperate in the Strait of Malacca between 2016-2020. It has three objectives: namely 1) to identify maritime security threats in Strait of Malacca; 2) to analyse the priorities and challenges of the Malaysia-Indonesia maritime cooperation in the Strait of Malacca; 3) to recommend the potential of a new maritime cooperation between Malaysia-Indonesia in the Strait of Malacca. This study was based on both primary and secondary data. Primary data was collected from structured interviews involving informants in various professional fields that are directly involved in maritime security in the Strait of Malacca. Secondary data was collected from literature reviews based on scientific publications, theses, journal articles, and online material, such as newspaper articles. The findings of this study will show the types of maritime cooperations between Malaysia and Indonesia and the measures that taken by the authority to encounter the illegal activities that taken place in the Strait of Malacca for the future actions. [ABSTRACT FROM AUTHOR]