CM: Sabah to benefit from relocation of Indonesian capital to Kalimantan

PENAMPANG: Sabah must be ready to take advantage of the economic spillover from Indonesia's plans to move its capital from Jakarta to Kalimantan, says Datuk Seri Mohd Shafie Apdal.

The Sabah Chief Minister said tourism was among the sectors expected to receive positive impact when the move became a reality.

"The spillovers will be there, but we must get ourselves ready as well.

"It is a very competitive world, and they will bring billions to develop their area (in Kalimantan).

"In terms of tourism, besides expanding tourism products, we must also ensure ways to boost tourist arrivals to Sabah as well as Sarawak, " he told reporters after officiating the state-level International Day of the World's Indigenous Peoples 2019 on Saturday (Aug 10) evening.

He noted how Singapore received such spillover effects due to its close proximity to Jakarta, something which Sabah could learn from.

"We need to see what kind of collaboration can be done with Indonesia for the benefit of both parties, " he added.

Indonesian president Joko Widodo announced in May that the government would push ahead with the plan to relocate the capital from Jakarta, citing the need to address overpopulation and to ensure more equitable development, reported The Jakarta Post.

He said the government was considering Central Kalimantan, East Kalimantan and South Kalimantan as the site for the new capital.

In a recent exclusive interview with The Jakarta Post, Indonesia's National Development Planning Minister Bambang Brodjonegoro said the location would be announced by the end of this year.

Kalimantan is part of Borneo island which also comprises Sabah, Sarawak and Brunei.

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