Selamat Datang

Delegates of ADB Economic Corridor Development for Competitive & Inclusive Asia Training

13 July 2018 INLAND PORT: CATALYST FOR BORDER ECONOMIC DEVELOPMENT ICQS TEBEDU INLAND PORT

ENTIKONG CIQS

LUBOK ANTU CIQS

NANGA BADAU CIQS

BIAWAK CIQS

ARUK CIQS Official Border 8 Checkpoints BORDER PADAWAN CONTROL BUNAN GEGA POST within Port Authority’s port limits BATU LINTANG 3 ICQS

Dedicated cargo lane 800m to border Tebedu Inland Port

Tebedu ICQS

Passenger Lane

4 V I S I O 2005 N

BORDER AREA INDUSTRY TRANSPORT FACILITATION

LIMITED ECONOMIC PROPOSED CROSS BORDER TEBEDU INLAND PORT ACTIVITY: BORDER TRADE ECONOMIC ZONE

CHALLENGE OF ECONOMIC ECONOMIC CATALYST ECONOMIC DRIVER GROWTH •No growth •Transport facilitation to •Industry is main economic •Unable to utilise natural enhance international driver leading to spill-over resources for trade in other sectors development: inadequate •Inland Port facility to •Critical are: Infrastructure infrastructure & utilities monitor, regulate and grow & Utilities, Regulations & trade Legislation, Resources

7 D E V E L O -extract-

KUCHING, Aug 17 (Bernama) – Tebedu in the on the border with West P is an entry and exit point for international trade between and . Some residents referred to it as Entikong, a “twin” town on the West Kalimantan side which is separated M by a boundary manned by the Immigration Department, Customs and police of both sides of the border.The Tebedu-Entikong crossing facilitates the flow of people and goods across the border. E Tebedu is now synonymous with the Tebedu Inland Port, which began operation in May and plays a significant role in promoting economic N and commercial development along the common border. T

– BERNAMA 8 C H A L L E N G E

9 RELEVANT LEGISLATION FOR TRADE APPLICABLE FOR WEST KALIMANTAN

KEPUTUSAN MENTERI Perdagangan Lintas Batas Traditional/ PERDAGANGAN REPUBLIK Traditional Cross Border Trade NOMOR 36/KP/III/95 The Border Trade Agreement between the Government of the Republic of PASAL 1/ CLAUSE 1 Indonesia and the Government of , 1970

Perdagangan lintas batas melalui PPLB Entikong dapat meliputi Peraturan Menteri Perdagangan Republik Perdagangan Luar Negeri/ Indonesia Nomor 87/M-DAG/PER/10/2015 perdagangan lintas batas International Trade traditional dan atau perdagangan luar negeri Impor Produk Tertentu dibatasi hanya boleh Ketentuan umum dan tata niaga di dilakukan oleh perusahaan milik Angka bidang ekspor dan impor Pengenal Importir Umum melalui pelabuhan tujuan tertentu Cross Border Trade through PPLB Entikong may include traditional General provisions and trade in exports Imports of Restricted Certain Items can only Cross Border Trade and/or and imports be conducted by companies with a General International Trade Importer Identification Number through designated port of destination.

INSTRUKSI PRESIDEN REPUBLIK INDONESIA NOMOR 6 TAHUN 2015 TENTANG PERCEPATAN PEMBANGUNAN 7 POS LINTAS BATAS NEGARA TERPADU DAN SARANA PRASARANA PENUNJANG DI KAWASAN PERBATASAN EXPEDITING THE DEVELOPMENT OF 7 INTEGRATED NATIONAL BORDER POST AND SUPPORTING FACILITIES AT THE BORDER AREAS i. Integrated Cross Border Post: PLBN Aruk (Sambas), PLBN Entikong (Sanggau) , PLBN Nanga Badau (Kapuas Hulu) ii. Minister of Trade – (i) Prepare/Revitalise border market at facility area of integrated PLBN and (ii) expedite trade / cross border trade ASEAN FRAMEWORK AGREEMENT ON THE FACILITATION OF GOODS IN TRANSIT PROTOCOL 1 DESIGNATION OF TRANSIT TRANSPORT ROUTES AND FACILITIES

INDONESIA : AH150 /ENTIKONG-TEBEDU (INDONESIA/MALAYSIA, SARAWAK BORDER) 321KM MALAYSIA : AH150 ENTIKONG/TEBEDU (INDONESIA/MALAYSIA BORDER) – SERIAN – KUCHING 106KM SUMMARY OF CURRENT STATUS OF INTERNATIONAL TRADE FOR TEBEDU-ENTIKONG

revised April 2018 The Border Crossing Agreement between the Government of the Republic of Indonesia and Revision of BCA1984 in progress . Expected to be signed mid-2018 the Government of Malaysia, 1984

The Border Trade Agreement between the Government of the Republic of Indonesia and Revision of BTA1970 in progress . Expected to be signed mid-2018 the Government of Malaysia, 1970 President Jokowi and Prime Minister Najib Razak: Normalisation of trade after signing of BCA and BTA INFRASTRUCTURE i. PLBN ENTIKONG – Phase 1 Completed and is operational International Trade ii. DRYPORT ENTIKONG: Under construction. Estimated completion in 2019 General provisions and trade in exports and iii. Dedicated Cargo Lane from Entikong ICQS – Sarawak Cabinet imports of the Republic of Indonesia approved cutting of hill and request for Indonesian Government to permit international trade in interim. UNLOCODE i. Tebedu UNLOCODE: MY TBU Peraturan Menteri Perdagangan ii. Entikong UNLOCODE: Ministy of Transport Indonesia will apply after Republik Indonesia Nomor 87/M- completion of Entikong Dry Port DAG/PER/10/2015 ENTIKONG CUSTOMS i. Upgrade from C-Class Status to higher status to permit international Imports of Restricted Certain Items trade – Awaiting for Official Notification can only be conducted by companies with a General Importer Identification OPENING OF OTHER BORDER AREAS Number through designated port of i. Sarawak State Government require bilateral trade matters for destination. Entikong-Tebedu to be resolved before considering opening of other border areas. PROPOSED TEBEDU-ENTIKONG CROSS BORDER ECONOMIC ZONE

1. Malaysia and Indonesia to jointly cooperate in the Production of Goods for export to the International Market

2. Endorse and promote main economic driver of Agriculture supported by Agribusiness and Agrobusiness with a view to progress into Manufacturing. CHALLENGE 3. Malaysia and Indonesia to create a To identify and establish an economic conducive environment:- Tebedu- driver for the rural areas of Sarawak and Entikong Cross Border Economic Zone West Kalimantan.

PROPOSAL To establish Tebedu-Entikong Cross

Border Economic Zone (CBEZ). 12 Learning Curve

Close working relationship between Countries necessary: Common goal of Joint Economic Development

Respective business communities to take lead, role of governments is to support and provide the necessary conducive regulatory and legal environment

Economic Cooperation Direction: Jointly Cooperate to produce goods for the international market 13 THANK YOU