KOTA KINABALU: There is no guarantee the proposed relocation of Indonesia’s capital to East Kalimantan from Jakarta will bring a windfall to its neighbours, a senior university lecturer said today.
Rafiq Idris of Universiti Malaysia Sabah said it is still not clear how East Kalimantan and other provinces in Kalimantan are to be developed.
“The relocation itself may not guarantee a significant impact even though the Indonesian government develops Kalimantan significantly and this is accompanied by multiplier effects,” he said in a statement today.
Rafiq said that many agreements had been signed and programmes organised and executed since Asean’s establishment in 1967.
The Asean Summit was first held in Bali in 1976, the Asean Free Trade Area (Afta) Agreement was signed in 1992, and the Brunei Darussalam-Indonesia-Malaysia-the Phillipines East Asean Growth Area (BIMP-EAGA) formed in 1994.
Despite all these, he said economic interaction was not substantial in the context of Sabah-Kalimantan trade, compared to the state’s trade with other countries relative to geographical distance.
As such, improving road connectivity between Sabah and Kalimantan would pave the way to exploring the new economic window as well as being a catalyst to further integrate the economies in Borneo.
“Road connectivity has the potential to further stimulate Sabah’s economic growth,” he said.
“It can help Sabah’s exporters or producers achieve economies of scale due to the larger market. It will also lower logistics costs, improve Sabah’s small-medium enterprises (SMEs) and downstream activities.
“I strongly believe that road links to Kalimantan must be built. Only then will Sabah have the potential to enjoy the effects of this relocation.”
Rafiq, who is also an associate fellow of the Ungku Aziz Centre for development studies at Universiti Malaya, hoped substantial funds would be allocated to improve road links and infrastructure in Sabah under the 12th Malaysia Plan.
One suggestion would be to build a road from Serudong district in Tawau to Simanggaris, which borders north Kalimantan, he said.
Indonesian President Joko Widodo announced yesterday that the location of the new capital would be in East Kalimantan province, straddling two regencies – Penajam Paser Utara and Kutai Kartanegara.
Sabah Chief Minister Shafie Apdal had said the Pan Borneo Highway project may be expanded into Kalimantan from the state through Kalabakan on the east coast. - FMT
Haiyah why so bodoh. Indonesia also can build dams mah. How than?
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