JAKARTA: Indonesian businesses say Sabah and Sarawak will benefit when the Indonesian capital city, Nusantara, is built in Kalimantan, which is expected to happen by 2024.
The Indonesian Chambers of Commerce (Kadin) Jakarta expressed optimism during a roundtable session with Ministers in the Prime Ministers Department Datuk Seri Dr Maximus Ongkili (Sabah and Sarawak Affairs) and Datuk Seri Mustapha Mohamed (Economy) here on Saturday (March 26).
"They (Kadin) expect the shifting (of Indonesia's capital city) to have an economic and development overflow that will trickle down to Sabah and Sarawak," said Ongkili, who led a Malaysian delegation for a week-long official visit to Indonesia.
In a statement, he said that Kadin was already working on a few matters with the Malaysian Government to boost bilateral and economic relations.
Kadin is an umbrella organisation of Indonesian business chambers and associations that focuses on matters related to national and international trade, industry and services with 34 regional chambers and 524 branches throughout Indonesia.
It is the only nationwide business organisation mandated by Indonesian law to speak on behalf of private businesses, maintaining a liaison to the government officials and covering all relevant sectors.
Ongkili, however, pointed out that there was a need to develop better infrastructure as well as to establish better security controls such as setting up Customs, Immigration, Quarantine and Security (CIQS) complexes at all entry points along the Kalimantan-Sabah and Sarawak borders.
"Bilateral cooperation between Malaysia and Indonesia has long existed but there is still room for improvement.
"Opportunities arising from the shift of the (Indonesian) capital city must be tapped by Sabah and Sarawak, the Malaysian states neighbouring Kalimantan," he added.
Describing the week-long visit as "timely and strategic", Ongkili said they are aiming to obtain first-hand information on the new location of the Indonesian capital and its likely impact on the border economy between Kalimantan, Sabah and Sarawak.
"We also hope the visit will enhance existing ties between the two countries so we can work closely – both economically, socially and politically in the future," Ongkili said, adding the delegates will be visiting several locations in Jakarta before heading to Balikpapan, Samarinda and Tarakan.
The Malaysian delegation comprises Sabah Deputy Chief Minister cum Industrial Development Minister Datuk Dr Joachim Gunsalam and Sarawak Deputy Premier Minister cum International Trade, Industry and Investment Minister Datuk Amar Awang Tengah Ali Hasan.
They are scheduled to meet top officials in Indonesia to discuss various matters, especially related to bilateral relations, the economy and other international issues.