Sabah and Sarawak to profit economically from Indonesia’s new capital city

Indonesia – Indonesia’s plan to relocate its capital city from Jakarta to Kalimantan, which is anticipated to begin in the first quarter of 2024, would help Sabah and Sarawak.

This was disclosed during a table discussion with Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) Datuk Seri Maximus Ongkili and Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapha Mohamed hosted by the Indonesian Chambers of Commerce (Kadin) Jakarta.

“The relocation of Indonesia’s capital city is projected to bring in economic and development spillovers that would trickle down through the border economy to Sabah and Sarawak,” Ongkili added.

Adlan Mohd Shaffieq, the Malaysian Embassy’s Chargé d’affaires in Indonesia, was also present at the meeting.

Kadin is an umbrella organization that brings together Indonesian business chambers and groups to address all aspects of national and international commerce, industry, and services.

It is the only countrywide business organization designated by the Indonesian authorities to advocate on behalf of private firms, communicate with government officials, and cover all important industries, with 34 regional chambers and 524 chapters.

Ongkili, who led a Malaysian group on a week-long official visit to Indonesia, said Kadin is already working with the Malaysian government on a number of issues to improve bilateral and commercial ties.

He believes that greater infrastructure and security controls, such as the development of Customs, Immigration, Quarantine, and Security complexes at all entrance points along the Kalimantan — Sabah and Sarawak borders, are required.

In view of both states’ closeness to Indonesia’s new state capital, he noted, Sabah and Sarawak must take advantage of the chances that would be made accessible.

“Bilateral collaboration between Malaysia and Indonesia has existed for a long time,” he added, adding that there is still opportunity for progress.

Ongkili and his delegation will meet with Indonesia’s senior authorities to discuss a variety of topics, including bilateral relations, the economy, and other international challenges.

Datuk Joachim Gunsalam, Sabah’s Deputy Chief Minister and Industrial Development Minister, and Datuk Amar Awang Tengah Ali Hasan, Sarawak’s Deputy Chief Minister and State International Trade, Industry and Investment Minister, are among the attendees.