Malaysia, Indonesia agree on key issues
CONSENSUS in areas involving politics, the economy, education, defence and security, and fishing and agriculture between the two nations was reached by Prime Minister Datuk Seri Najib Razak and President Joko Widodo at the 12th Malaysia-Indonesia Annual Consultation meeting in Kuching.
KUCHING: Malaysia and Indonesia want negotiations to review the decades-old Border Trade Agreement (BTA) and Border Cross Agreement (BCA) between the two countries to be finalised immediately.
Prime Minister Datuk Seri Najib Razak and Indonesian President Joko Widodo, also known as Jokowi, have pressed for talks to review BTA and BCA to be hastened as the agreements will lay the foundation to boost border trade and improve the welfare of people living in the border areas.
“Both of us have agreed in principle for the normalisation of cross-border trade along the Entikong-Tebedu (West Kalimantan-Sarawak) border once negotiations to review the two agreements are finalised.
“We hope that matter could be finalised soon.
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The increase in the number of joint posts will strengthen security and safety along the border and help in the prevention of transboundary crime.
JOKO WIDODO
Indonesian president
“We also took note of the request from the Sabah government for (trade activities in) the Serudong-Simanggaris (TawauNorth Kalimantan) border to be opened. This will depend on the negotiations on BCA and BTA.
“The opening of these border posts will benefit communities living along the border, in the two countries,” said Najib and Jokowi at a joint press conference after the 12th Annual Consultation between Malaysia and Indonesia here yesterday.
BTA, enforced since the 1970s, enables Indonesians holding special cross-border identity cards to trade up to RM600 worth of duty-free goods every month with their Malaysian counterparts. The agreement, however, could not support the present economic activities along the Indonesian-Malaysian border.
Both leaders took note that the conclusion to BCA was expected to be signed in the middle of next year, while the review of BTA would be finalised the same year.
On a related matter, both leaders announced a study to enable Malaysia and Indonesia to jointly develop high-value agriculture activities and other industries along the Malaysian-Indonesian border.
“We are looking into establishing free trade zones, and smalland medium-scale industries to improve the lot of the people living along the border,” said Najib.
Both countries also agreed to increase the number of joint border posts to boost security, reduce smuggling and prevent threats from terrorist groups along the border.
“The increase in the number of joint posts will strengthen security and safety along the border and help in the prevention of transboundary crime,” said Jokowi.
Both leaders also agreed in principle to stimulate the halal industry by fixing the middle of next year as the deadline to resolve longstanding issues on mutual recognition of halal certification.
“We agreed that there should be mutual recognition of halal certification and that this matter must be discussed among the respective bodies (in both countries).
“This has been a long overdue issue, which needs to be resolved immediately, to allow more conducive imports and exports of halal products between the two countries,” Najib said.
Jokowi added that trade value between Malaysia and Indonesia, in general, recorded a growth of 21 per cent in the first half of this year.
“This is a big achievement for both countries.
“I would like to express my appreciation to Malaysia for its continuous support in allowing Indonesia to export rice products via the Entikong-Tebedu border,” Jokowi said.
Najib and Jokowi earlier witnessed the signing of a memorandum of understanding on cooperation in Islamic higher education, which reflected the commitment of the countries to strengthening people-to-people relations.