KUALA LUMPUR: The shifting of Indonesia’s capital to Kalimantan will require both Sabah and Sarawak to prepare themselves in the development of borders and exploring bilateral business-to-business (B2B) opportunities.
Deputy Prime Minister Datuk Seri Fadillah Yusof said border developments 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.
“Development of towns along the Kalimantan, Sabah and Sarawak border areas needs to be sped up, especially for CIQ improvements and roads leading to the CIQ along the main border,” he said in a recent exclusive interview with Bernama.The Finance Ministry has approved an additional RM1bil for upgrading projects and to construct better infrastructure along the 1,881km border separating Sarawak and Sabah from Kalimantan.
Fadillah, who is also Plantations and Commodities Minister, said other aspects of focus include exploring B2B opportunities and cross-border economic interactions that could fulfil the needs of both countries.
He cited Sarawak as an example, saying that due to good relations, the state has been exporting electricity to West Kalimantan for several years, and was given the opportunity to construct a hydroelectric dam.
“Indonesia wants to have hydropower – four dams in Kalimantan – and one package has been agreed to be given to Sarawak.
“Sarawak Energy will be the implementer as it has the experience in building four hydroelectric dams in Sarawak,” he said.
He added that discussions were held on opportunities to tap the upstream and downstream industry, especially for the palm oil sector, during his recent visit to Indonesia, which is 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 also upstream.
“How we can strengthen bilateral ties in this context, including logistics? This is something we’re discussing with Indonesia currently,” he said.
Fadillah 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 can 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.
“If we can tap them, we can develop them together with Indonesia,” he added.
