Decision not to fund CIQS project disappointing

KOTA KINABALU: Honorary president of the Kota Kinabalu Foochow Association, Datuk Seri Ling Hie Sing, has expressed disappointment that the Federal Government did not provide adequate funding for the Customs, Immigration, Quarantine and Security (CIQS) project in Serudong, Kalabakan despite Sabah has contributed much of its resources to the nation’s development.

He said the relocation of Indonesia’s capital will bring tremendous economic benefits and foreign exchange earnings to Sabah, and as said by Chief Minister Datuk Seri Panglima Haji Hajiji Noor, the CIQS centre at Serudong was extremely important to the state.

He pointed out that the federal Public Works Minister Datuk Seri Fadillah Yusof had said that the CIQS would be delayed as the Finance Ministry did not provide funds for it, when asked by Kalabakan Member of Parliament Mamun Sulaiman in Parliament.

Ling said the CIQS centre would improve the local people’s economic wellbeing, as well as other developments such as transportation, commerce, culture and education, when Indonesia moved its capital to Kalimantan.

He said it was illogical for the federal Works Ministry to state that that project was suspended due to lack of funding.

He said the Works Ministry should strive to enhance the people’s livelihood, as opposed to shifting the responsibility to the Finance Ministry for not approving the funds.

“Indonesia’s capital relocation to Kalimantan and the Kalabakan CIQS project will uplift the people’s livelihood and economy.”

According to Asia Television News, Ling said Indonesia President Joko Widodo had officiated at the ground breaking ceremony for an industrial park in North Kalimantan province in December last year, with investments mainly from China and the United Arab Emirates.

“The development plan of the North Kalimantan Industrial Park has attracted a potential investment of US$132 billion, including the construction of a petrochemical facility worth US$57 billion, and the construction of five hydropower development stations in cooperation with local companies with a total investment of US$17.8 billion. These big, step-by-step plans will drive new business opportunities in the surrounding areas.”

He said that the national strategic area of Indonesia’s new capital would reach 256,000 hectares, and the core administrative center would be 6,600 hectares. The Indonesian government has targeted completion in the first half of 2024.

Ling believed that the Federal Government’s suspension of the Kalabakan CIQS project at this time was not aligned with the goal of improving the well-being of the Sabah people.

He said the Federal Government should step up its efforts to reap the benefits of the relocation of Indonesia’s capital, which would greatly contribute to the future development of the surrounding urban and rural areas.

North Borneo Explorer Sdn Bhd director Anwar Ghani Gilong also expressed disappointment with the Federal government’s decision not to build the Serudong/Simanggaris road and the CIQS post.

Anwar said that the road was critical as it was Sabah’s gateway to Kalimantan, Sabah’s nearest international neighbour.

“This road would open up and be the link to Kalimantan’s Kaltara. It is the last and final link that will make a full round Borneo island road. Imagine being able to drive down to Balikpapan or Samarinda for a few days or driving round leisurely around the whole Borneo island past Banjarmasin, Palangkaraya, Sampit, Pontianak for say a month enjoying all the sights, culture, cuisine, history and heritage, nature, nightlife, shopping around Borneo Island. Crossing the equator twice at Bontang and Pontianak to experience the Equinox,” said Anwar who is part of the TransBorneo team and has done numerous crossborder expeditions from Sabah, Sarawak, Brunei and into Kalimantan.

He added that on the Kalimantan side, the Indonesian government had built a coast to coast road from Sambas (Kalbar) to Sungai Ular, Simanggaris (Kaltara) measuring about 3,000 kilometers and the road was completely sealed.

“They also built a border road along the Sarawak/Kalimantan/ Sabah borders measuring 1,800 kilometers, which was completed in 2019. Altogether Indonesia plans to build nine CIQS points known as Pos Lintas Batasan Negara (PLBN) with Sarawak and Sabah. Of this nine, three land CIQS points between the Sarawak–Kalimantan border; Tebedu (Malaysia)/Entikong (Indonesia), Biawak (Malaysia)/ Aruk (Indonesia), Lubuk Antu (Malaysia)/Nangga Badau (Indonesia) have been opened and operational. The only CIQS points between SabahKalimantan at this point of time is at Tawau and the Indonesian island of Tarakan (by sea). There is none by land,” he said.

Anwar also said that two possible CIQS points between Sabah–Kalimantan are at Serudong /Simanggaris, and Nabawan /Tualumbis have been identified.

“It is incredible that 57 years after the end of the confrontation that we do not have a road link with Kalimantan, our nearest neighbour. For good measure, Indonesia is also building train routes from coast to coast which are in the process of construction,” he said.

Anwar also said that in a prefeasibility study of Sabah–North Kalimantan Cross Border Value Chains (CBVC) done by Asian Development Bank (ADB) , written by Montague Lord and Susan Chang, seven areas were identified as areas with huge economic potential between Sabah and Kalimantan Utara, namely Medical Tourism, Technical and Vocational Education and Training (TVET), Palm Oil industry (refining and downstream), Wood Processing industry (downstream), Fisheries industry, Organic Vegetables and Crustaceans, and MultiDestination Tourism Value Chain.

“This study was done before the announcement of Nusantara in Penajam Paser Utara as the new capital of Indonesia. More opportunities are bound in terms of construction, supplies and related fields including Semi–Medium Industries (SMEs), Tourism etc etc.

“In addition to the above would be power generation and supply to the biggest green industrial park in the world at 30,000 hectares/70,000 acres in Tanah Kuning and Mangku Padi at Tanjung Selor, Kaltara provided by Sarawak Energy Berhad (SEB) as a result of technology and lessons learnt from the Bakun Dam,” he said.

At the same time, in medical tourism, Anwar cited that there were about six private hospitals in Sabah and one in Tarakan Kalimantan (run by Pertamina) at the moment.

“Most Kaltarans now seek treatment in Singapore, Malacca and Penang because of bad connectivity to Sabah (no flights). There is big business potential for the hospitals in Sabah.”

He further added that at the time of the study, there was no oil palm refining plant in Kaltara.

“If this remains, the Lahad Datu Palm Oil Industrial Cluster (POIC) can benefit greatly for refining palm oil from Kaltara provided the road is built.

“In agriculture, Bakelalan with its cool temperate weather at 3,000 feet above sea level can become the supplier of organic vegetables for the whole of Kaltara and beyond.

As per the tourism sector, Anwar opined that what can be created was a true Borneo package which included Sabah, Sarawak, Brunei and Kalimantan.

“This could be called The Northern Borneo Trail or Circuit. Imagine the influx of tourists from Indonesia alone. They will come to see Sabah, the Jewel of Borneo. The possibilities are endless and mind-boggling,” said Anwar.

He also cited other economic studies that have been done by Professors Rafiq Idris and Kasim Mansur in “Sabah-Kalimantan economic relations” and with Rizal Zamani Idris “The Economy of Sabah And Kalimantan”.

Additionally, the effect of the shift of the Ibu Kota Negara (IKN) from Jakarta to Nusantara has also been studied by University Malaysia Sabah (UMS) in their book “Perpindahan Ibukota Indonesia ke Kalimantan (Implikasi ke atas Negeri Sabah, Malaysia)” .

According to Anwar, what must be galling to the Indonesians was the fact that they have shown their desire for connectivity with Sabah.

“A border monument was declared open at Simmangaris on 7th March 2010 constructed before the division of Kaltim into Kaltara and Kaltim in 2015 by the then governor of Kaltim, Drs H Awang Faroek, to show their intent.

“The delay can be perceived as a slap on the face to the Indonesians. They have shown that they are willing to forgive and forget the confrontation. The Federal Government has failed, refused and neglected to open up the border,” said Anwar.

He reiterated that the Serudong/Simanggaris border was important to link the whole of Kalimantan.

“Sabah is 9.8% of Borneo Island (Sarawak is 13%, Brunei Darussalam is 0.8%) while Kalimantan is 76% of the island. Connectivity with Kalimantan will improve the economy of Sabah and make it more self-sufficient and financially independent when it links up with Kalimantan and its current population of 16.38 million (2019) which is definitely going to increase with the moving of the new IKN. The perception is that the Federal Government is loathed and seemingly reluctant to see Sabah achieve this. This is a reasonable surmisation when, on the one hand, the Federal Government refuse, fail and neglect to build the CIQS points while on the other hand, it is willing to issue Islamic bonds (Sukuk) for RM50 billion to build the Mass Rapid Transit 3 (MRT3) railway for the Klang Valley.

“The Serudung/Simmangaris road will serve more people than the MRT3. And it costs just slightly more than 10% of the MRT3. Kalabakan will take off as a border area town with all the satellite industries developing and the road will bring benefits to Kalabakan, Tawau and Lahad Datu,” said Anwar.

He also said that there are a number of companies willing to do private funded investment (PFI) in this project.

“However, the Federal Government does not want to guarantee the PFI project. This can be settled if the State Government itself guarantees the PFI on terms agreeable with the PFI builder.

“Also, at one time there was talk of Asian Development Bank (ADB) willing to give the loan to build the link and CIQS point. It is important to Sabah’s well-being and economic advancement that this road is constructed. The volume of business that will pass through this border trade route is immense. It is the most important link in Malaysia, bar none, at this point of time. We must find a way to get it built,” he said.

Indonesia’s capital relocation to Kalimantan and the Kalabakan CIQS project will uplift the people’s livelihood and economy.

Datuk Seri Ling Hie Sing