BALIKPAPAN: Sarawak and East Kalimantan, Indonesia, have signed a Memorandum of Understanding (MoU) to form a Joint Task Force focusing on advancing strategic development.
The MoU was signed following a visit by a high-level delegation from Sarawak, led by Deputy Premier Datuk Amar Awang Tengah Ali Hasan, for a dialogue session in Balikpapan with senior officials and business leaders from East Kalimantan, reaffirming both regions’ commitment to deepening bilateral economic cooperation.
The dialogue highlighted the enduring ties between Sarawak and Kalimantan, rooted in shared history, cultural affinity and a common regional vision.
The Sarawak delegation included representatives from the Sarawak Business Federation (SBF), Federation of Malaysian Manufacturers (FMM), and various government and private sector entities while the Indonesian counterparts comprised officials from the East Kalimantan Provincial Government, Nusantara Capital City Authority (OIKN), Indonesian Chamber of Commerce and Industry (KADIN), and local business associations.
Key areas of collaboration include: renewable energy where Sarawak is expanding its clean energy portfolio through hydro, solar and biomass, with interest in hydropower collaboration in North Kalimantan and biomass ventures in East Kalimantan.
Nusantara’s goal of full renewable energy by 2045 presents further synergy.
Second, Nusantara development where Sarawak expressed keen interest in contributing to the development of Indonesia’s new capital, particularly in sectors such as healthcare, education, tourism and infrastructure – aligned with Nusantara’s vision as a forest, smart and sports city.
Third is cross-border trade and investment.
Both sides aim to streamline trade and investment flows, with discussions on joint special economic zones and industrial parks at strategic border points to enhance connectivity and job creation.
The fourth area is in sustainability and circular economy.
Cooperation on conservation efforts, carbon trading, and green technologies was emphasised, with a shared focus on value-added timber products and sustainable resource management.
Fifth, in infrastructure and connectivity, plans included improved road networks, new airports and direct flights are expected to boost tourism and economic exchange between Sarawak and Kalimantan.
The meeting also acknowledged East Kalimantan’s evolving economic landscape, with growing emphasis on manufacturing and diversification beyond traditional sectors.
A key outcome was the formation of a Joint Task Force between KADIN Indonesia and SBF to develop actionable policy recommendations and ensure alignment between public and private sector priorities.
The MoU marks a renewed commitment to collaborative growth, reinforcing Sarawak and Kalimantan’s shared ambition for a more integrated and prosperous Borneo.
