TARAKAN - The North Kalimantan Provincial Government (Pemprov) and the State Government of Sabah, Malaysia, are targeting the strengthening of cross-border trade and investment as part of the development cooperation of the two countries' border areas.
This opportunity is one of the focuses in the 28th Meeting of the Malaysian-Indonesian Working Group/Social Economic Working Committee (KK/JKK SOSEK MALINDO) at the Provincial Level of Kaltara - Sabah State Level in 2026 which was held in Tarakan from July 29 to 31.
Kaltara Governor Zainal A. Paliwang said Kaltara's position as a province that borders directly on Malaysia as well as the buffer area of the Nusantara Capital City (IKN) opens up great opportunities for increased cross-border connectivity and investment.
"The scope of cooperation between Kaltara and Sabah can be expanded in a number of sectors, ranging from trade, investment, logistics, employment and tourism to food security," said Zainal.
"This great potential is an important capital to support the IKN supply chain and strengthen the competitiveness of the border area so that it grows as a new, resilient and sustainable economic center," he continued.
Zainal said that the relationship between Kaltara and Sabah has strong capital to be developed. In addition to geographical proximity, the people of the two regions have long had social, economic and cultural relations.
"Trade activities and community mobility in border areas need to be supported with increasingly concrete cooperation so that they can provide economic impact for people in both areas," he said.
In addition, Kaltara is also developing a number of strategic projects that have the potential to open investment opportunities and form new supply chains in the region. These projects include the Indonesian Green Industrial Area (KIHI), the Yellow Land-Mangkupadi Industrial and International Port Area (KIPI), the Kayan Cascade PLTA, the fish and seaweed processing industry, and the development of green energy.
"The construction of IKN also improves Kaltara's strategic position in the regional economic network. The need for logistics, food, energy and various supporting commodities for IKN is considered to open up greater cooperation with Sabah," he said.
He hopes that this cooperation will not only encourage the flow of goods, but also open up new investment opportunities that can strengthen the economy of the border area.
"Previously, the North Kalimantan Provincial Government has also encouraged the entry of national and foreign investment through the Kaltara Investment Forum 2026. The forum involves participants from a number of countries, including Malaysia, South Korea and Singapore," he explained.
Zainal added, in the 28th SOSEK MALINDO Meeting, his party appreciated the presence of the Chairman of the SOSEK MALINDO JKK of the State of Sabah Datuk Dr. Jamili Nais and the Malaysian delegation, the Consul of the Republic of Indonesia in Tawau, representatives of the Ministry of Home Affairs, the National Border Management Agency (BNPP), and elements of the Kaltara Forkopimda.
"The presence of all delegations shows a common commitment to continue strengthening the friendship and cooperation between Indonesia and Malaysia, especially Kaltara and Sabah," said Zainal.
He explained, the 28th meeting was a follow-up to the previous meeting which took place in Sandakan, Malaysia in 2025. In addition to evaluating the programs that have been agreed upon, both parties discussed various obstacles in implementing cooperation as well as agendas that can be developed in the future.
"It is hoped that the discussion in SOSEK MALINDO will produce realistic recommendations that can be followed up. Cooperation between the two regions, he said, must lead to concrete benefits for people living in border areas," he concluded.
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