JAKARTA: Indonesian businesses are confident that Sabah and Sarawak will benefit from the shifting of their capital city from Jakarta to Kalimantan, which is expected by the first quarter of 2024.

       The Indonesian Chambers of Commerce (Kadin) Jakarta voiced its optimism during a roundtable session with Ministers in the Prime Minister’s Department Datuk Seri Dr Maximus Ongkili (Sabah and Sarawak Affairs) and Datuk Seri Mustapa Mohamed (Economy) here on Saturday.

       “They expect the shift will have an economic and development overflow that would trickle down to Sabah and Sarawak through the border economy,” said Ongkili, who is leading the Malaysian delegation on the week-long official visit to Indonesia.

       In a statement, he said Kadin was already working with the Malaysian government to boost bilateral and economic relations.

       Kadin is an umbrella organisation of Indonesian business chambers and associations – covering 34 regional chambers and 524 branches throughout the country – that focuses on all matters related to national and international trade, industry and services.

       Ongkili, however, said there was a need to develop better infrastructure and security, such as setting up Immigration, Customs, Quarantine and Security complexes at all entry points along the Sabah and Sarawak borders with Kalimantan.

       “Bilateral cooperation between Malaysia and Indonesia has long existed but there is still room for improvement. Opportunities from the decision to shift the capital to Samarinda must be tapped,” he added.

       Describing the visit to Indonesia as “timely and strategic”, Ongkili said they aimed to obtain first-hand information on the new location of the Indonesian capital and its likely impact on the border economy.“We also hope to enhance ties, so we can work closely – economically, socially and politically – in the future,” he said.