KUALA LUMPUR: The shifting of Indonesia’s capital to Kalimantan, neighbouring Sabah and Sarawak, will require both regions to prepare themselves, especially in the development of borders and exploring bilateral business-to-business (B2B) opportunities.
Deputy Prime Minister Datuk Seri Fadillah Yusof said border developments they intend to focus on include upgrading the Customs, Immigration and Quarantine (CIQ) complexes along the main border between Sabah, Sarawak and Kalimantan, following the establishment and construction of Nusantara, Indonesia’s new capital city in Kalimantan Timur.
“Development of towns along the Kalimantan, Sabah and Sarawak need to be sped up, especially for the CIQ improvements, roads leading to CIQs along the main border between Sabah, Sarawak and Kalimantan,” he said in a recent exclusive interview with Bernama.
The Finance Ministry had previously approved an additional RM1 billion for upgrading projects and to construct better infrastructure along the 1,881-kilometre border separating Sarawak and Sabah from Kalimantan, Indonesia.
Fadillah, who is also Plantations and Commodities Minister, said other aspects of focus include exploring B2B opportunities and cross-border economic interactions that can fulfil the needs of both countries.
Fadillah cited Sarawak as an example, saying that thanks to good relations, the region had exported electricity to West Kalimantan since several years ago, and was given the opportunity to construct a hydroelectric dam in the country.
“Indonesia wants to have hydropower, four dams in Kalimantan and one packages has been agreed to be given to Sarawak. Sarawak Energy will be the implementor as they have experience in building four hydroelectric dams in Sarawak,” he said.
He added that he had focused on discussions about opportunities to tap the upstream and downstream industry, especially for the palm oil sector, during his recent visit to Indonesia, the largest producer of palm oil in the world.
“Kalimantan has the most plantations due to its large land mass, so the opportunities won’t be just downstream but upstream, and how we can strengthen bilateral ties in this context, including logistics. This is something we’re discussing with Indonesia currently,” he said.
Meanwhile, he said Malaysia and Indonesia could jointly plan to develop a railway network at the border of Sarawak and Kalimantan to transport goods from Kalimantan to Bintulu and utilise its port facilities.
“Maybe the federal government could assist the Sarawak government in negotiating with Indonesia to prepare a railway line to transport goods from Kalimantan to Bintulu Port.
“The sea route is quite far, so this will help Indonesia in exporting as Kalimantan has many resources, so if we can tap them….we can develop them together with Indonesia,” he added. – BERNAMA
