Marzuki: Indonesia’s move will benefit M’sia

MALAYSIA will benefit from Indonesia’s decision to relocate its capital to East Kalimantan on Borneo island, Deputy Foreign Minister Datuk Marzuki Yahya told the Dewan Rakyat.

He said Indonesia’s decision could see an increase in the population, as well as economic activities, in Borneo.

“This will give a lot of benefits to Malaysian states, particularly Sabah and Sarawak, and will also bring about new challenges.

“The relocation of the Indonesian capital will stimulate the economy in Borneo, and Sabah and Sarawak will be able to benefit from it,” he responded to Larry Sng Wei Shien (PH-Julau) who asked the ministry to state the government’s stand with regard to the move.

Marzuki said the tourism sector in Sabah and Sarawak was also expected to grow given the close proximity between Kalimantan and the two states.

“The relocation is expected to open up many new opportunities to increase economic collaboration between Malaysia and Indonesia.

“Particularly for the Borneo region, with the involvement of developers and Malaysian contractors who can take part in development projects in East Kalimantan,” he added.

Marzuki said the government believed the decision would not affect bilateral ties between both countries, adding that the government would be holding negotiations to ensure that implications caused by the relocation of Indonesia’s capital would be beneficial for all.

He also said that as a close neighbour of Indonesia, Malaysia was always ready to share its experience and expertise if needed, given its experience in relocating its administration from Kuala Lumpur to Putrajaya.

Indonesia intends to move its capital to East Kalimantan by 2024.

The relocation of the Indonesian capital will stimulate the economy in Borneo, and Sabah and Sarawak will be able to benefit from it.

Datuk Marzuki Yahya