Get ready to embrace economic, social change once Nusantara gets operational, says Maximus Ongkili

KOTA KINABALU: Malaysia needs to quickly and efficiently prepare for the expected change in economic and social activities when Indonesia’s new capital city - Nusantara - is ready for operation, says Datuk Seri Dr Maximus Ongkili.

The Minister in the Prime Minister's Department (Sabah and Sarawak Affairs) said as much as everyone was excited about this new development, Malaysia must be fully prepared for the huge change.

"We are equally excited (about the move) because obviously, the economic spillover will benefit neighbouring Malaysian states - Sabah and Sarawak,” he said.

"However, there are issues that need to be looked into, such as economic border trading, logistics and security,” he said after leading the country’s first delegation to reach Indonesia's future capital city on Wednesday (March 30).

“There is a need for the Federal Government to speed up the establishment of Immigration, Customs, Quarantine and Security (CIQS) centres at all entry points into Malaysia," Ongkili added.

The Malaysian delegates are currently on a week-long official visit to Indonesia, beginning March 26, and are currently in Tarakan, their fourth stop after Jakarta, Samarinda and Balikpapan.

Nusantara sits on a 632,850-acre site, roughly four times larger than Jakarta, thus presenting opportunities for investors from a wide range of industries.

"The delegation had the opportunity to visit the proposed site for the presidential palace, where President Jokowi Widodo camped with his top officials just weeks before," said Ongkili.

He was accompanied by Sarawak Deputy Premier Datuk Amar Datuk Amar Awang Tengah Ali Hasan and Sabah Deputy Chief Minister Datuk Dr Joachim Gunsalam.

Also present were Adlan Mohd Shaffieq, the Chargé d'affaires of the Malaysian Embassy in Indonesia, Sarawak stakeholder Datuk Joseph Salang Gandum, as well as top government department and agencies officials.

It is anticipated that the presidential palace, legislative buildings and key national government departments would be opened in the new capital, sometime before the next presidential handover in 2024.

The chosen location is an area split between North Penajam Paser Regency and Kutai Kartanegara Regency in East Kalimantan, which is roughly between Balikpapan and Samarinda.

Work was supposed to start in the new city in 2020, but the Covid-19 pandemic forced the project to be put on hold before resuming in 2021.

Later, the delegation visited Bayan Resources, which is engaged in open cut mining of various coal mines located in East and South Kalimantan.

The company has exclusive rights to mine through five main Coal Contract of Works (CCOWs) and 16 Mining Business Permits (IUPs).