Sabah, Sarawak urged to prepare for Indonesia's capital city move to Kalimantan

27 February 2023

By Wartawan Nabalu News

KUALA LUMPUR: Indonesia's transfer of its capital city to Kalimantan, which is near Sabah and Sarawak, requires the two states to make necessary preparations, particularly in border development and exploring Business-to-Business (B2B) relationships between the two countries.

Deputy Prime Minister Datuk Seri Fadillah Yusof said improving Customs, Immigration and Quarantine (CIQ) complexes along the main border between Sabah, Sarawak, and Kalimantan will be given focus.

In an exclusive interview with Bernama, he emphasised the need for accelerating the development of cities on the borders of Kalimantan, Sabah, and Sarawak, especially for the improvement of CIQs and roads leading to CIQs on the main borders.

An additional allocation of RM1 billion was previously approved by the Ministry of Finance for upgrading and building better infrastructure along the Sarawak and Sabah borders, which span 1,881km separating Sarawak and Sabah in Malaysia and the Kalimantan region in Indonesia.

Fadillah, who is also the Minister of Plantation Industries and Commodities, emphasised the need for building and exploring B2B relationships to establish economic interactions across the border to meet the needs of both countries.

He cited the example of Sarawak, which has been exporting electricity to West Kalimantan for several years and has been given the opportunity to be involved in building hydroelectric dams in the country.

During his visit to Indonesia, Fadillah discussed opportunities to explore upstream and downstream industries, particularly palm oil, between the two countries.

Kalimantan has the largest number of plantations, making it an opportunity for downstream and upstream industries.

Strengthening the relationship between the two countries in this context, including logistics, is currently being discussed with Indonesia.