Tue, 27 Feb 2024


Sabah, Sarawak to benefit from Indonesia’s new capital city economic spillover
Published on: Sunday, March 27, 2022
By: Bernama
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Sabah, Sarawak to benefit from Indonesia’s new capital city economic spillover
JAKARTA: Sabah and Sarawak are set to benefit from Indonesia’s decision to shift its capital city from Jakarta to Kalimantan, which is expected to commence in the first quarter of 2024.

This was revealed during a briefing by the Indonesian Chambers of Commerce (Kadin) Jakarta during a roundtable session with Minister in the Prime Minister's Department (Sabah and Sarawak Affairs) Datuk Seri Dr Maximus Ongkili and Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapha Mohamed. 

“The shifting of Indonesia’s capital city is expected to result in economic and development spillovers that will trickle down to Sabah and Sarawak through border economy,” Maximus said.

Also present at the session was Adlan Mohd Shaffieq, the Chargé d'affaires of the Malaysian Embassy in Indonesia.

Kadin is an umbrella organisation comprising Indonesian business chambers and associations that focuses on all matters related to national and international trade, industry and services.

With 34 regional chambers and 524 branches, it is the only nationwide business organisation mandated by the Indonesian authorities to speak on behalf of private businesses, liaise with government officials and cover all relevant sectors.

Maximus, who led a Malaysian delegation for a week-long official visit to Indonesia, highlighted that Kadin is already working on a few matters with the Malaysian government to boost bilateral and economic relations.

He said there is a need to develop better infrastructure as well as the establishment of better security control such as the setting up of the Customs, Immigration, Quarantine and Security complexes at all entry points along the Kalimantan - Sabah and Sarawak borders.

He added that Sabah and Sarawak must take advantage of the opportunities that will be made available in light of both states’ proximity to Indonesia’s new state capital.

“Bilateral cooperation between Malaysia and Indonesia has long existed, but there is still room for improvement,” he said.

Maximus and his delegates are scheduled to meet up with top officials in Indonesia to discuss various matters, especially those related to bilateral relations, the economy and other international issues.

The team of delegates include Sabah Deputy Chief Minister cum Industrial Development Minister, Datuk Dr Joachim Gunsalam and Sarawak Deputy Chief Minister cum state International Trade, Industry and Investment Minister, Datuk Amar Awang Tengah Ali Hasan.

Describing the week-long visit as ‘timely and strategic’, Maximus said the team aims to get first-hand information on the location of the new Indonesian capital and its likely impact on the border economy between Kalimantan and Sabah and Sarawak. 

“We also hope the visit would enhance existing ties between the two countries, so that we can work closely, economically, socially and politically in the future,” he said.

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