The SCCC delegates, from left, Ling Hang Tze, Brett Chua, Frankie Liew, Soh Poh Soon and KJ Tan posing in front of the presidential palace at Nusantara.
KOTA KINABALU (Dec 17): Indonesia’s new capital city Nusantara will drive the development of Sabah, says the business community.
Sabah China Chamber of Commerce (SCCC) president Datuk Frankie Liew agreed with Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe that Nusantara would not only bring progress to East Kalimantan but also Sabah and the Borneo region.
Liew said the new capital will definitely help to bring development to Sabah and drive the economic progress of the state.
“Nusantara and Sabah are close to each other and transportation is easier between the two areas, ” he pointed out after visiting Nusantara with a business delegation from Sabah led by Phoong last month.
Frankie Liew
Liew said the main aim of their return visit was to find out the development progress of Nusantara which according to him was very successful and fast.
“They are serious in developing the new capital. When we were here last July, it was still covered with forests and oil palm plantations. Now it has been transformed with buildings and infrastructure facilities,” he said.
According to Liew, the potential business areas for Sabah entrepreneurs to explore in Nusantara and Balikpapan are hardware and tourism, two industries that will help bring development to Sabah.
“People from other countries will come to Sabah before coming to Nusantara as our state is the transport hub. Now they have to go to Jakarta or Kuala Lumpur and take a connecting flight to Balikpapan before coming to Nusantara.
“With direct flight in the future, it will be easier and nearer to come to Nusantara, bringing economy development to Sabah and Nunsantara.
“Tourists and entrepreneurs from China who want to go to Balikpalan and Nusantara can use Sabah as a gateway instead of flying to Jakarta and Kuala Lumpur. They can also spend a few days in Sabah,” he added.
The distance by road from Kota Kinabalu to Balikpapan (the city closer to Nusantara) is about 800 kilometres.
Phoong (third left) and the Sabah business delegation posing in front of the presidential palace at Nusantara.
Phoong was the first minister from Sabah invited by the Indonesian Consulate General in Kota Kinabalu to visit the new capital on November 28 after it is open to visitors.
The minister forsees Borneo as the future growth centre and Borneo will become the most important development centre in the whole east Asean.
Honorary advisor of SCCC, Dato Soh Poh Soon, said getting to the new capital will be faster and easier after the transport network system has been upgraded from Balikpapan.
“Nusantara now has a VVIP airport. The Indonesian authorities are planning to develop it into a commercial airport and build a highway and a railway network from Balikpapan to Nusantara, he said.
Now it takes around one to two hours to reach Nusantara from Balikpapan through a narrow and winding road.
Soh urged the government to give priority to the building of Immigration, Customs, Quarantine, and Security (CIQS) at the Sabah-Kalimantan border as it is an important point of entry.
“We should take advantage of the 3.5 million population in East Kalimatan for trading of goods.
“Instant noodles, crackers and daily products like flour, sugar and rice from Malaysia are in high demand in Kalimantan as they are cheaper,” he disclosed.
He also said Sabah has many direct flights to China, Korea and other countries. It is also cheaper to fly from Sabah as domestic airfares are more expensive in Indonesia.
“Flying from Balikpapan to Kota Kinabalu will be cheaper than from Jakarta when there is a direct flight in the future,” he said.
SCCC deputy president Brett Chua concurred that the movement of people between Sabah and Kalimantan would be easier with the opening of CIQS and direct flight in the future.
AirAsia has not announced any plan yet to launch the Kota Kinabalu-Balikpapan sector but will start flying from Kuching next year.
Connie Chong
However, MASwings is considering a direct flight from Kota Kinabalu, according to Connie Chong, the managing director of Fun Holiday Tours and Travel.
She said Nusantara is a good start to bring further development to the tourism sector in Sabah and the Borneo region.
“Nusantara will attract more investors, entrepreneurs and tourists,” said Connie who also brought a group of entrepreneurs from Sabah to Nusantara to witness its development and to seek business prospects.
Nusantara opened to visitors in August this year. Visits have to be arranged through travel agents.
Albert Lim, Director of Nasajo Sdn Bhd, saw the potential of developing his marble tiles business in East Kalimantan.
The Sabah businessman stressed that the building of a highway from Tawau to Indonesia would bring development to Sabah.
“Road, water and electricity infrastructure are very important to the development of Sabah,” he pointed out.
Lim also agreed that the border area at the CIQS would be booming when it is developed.
“Sabah must get ready within five years or we will miss the opportunities,” he said.
Asik Emor
Keningau village chief Asik Emor said that Sabah should grab the opportunities provided by Nusantara before they are taken by other people.
The 69-year-old retired civil servant from Kampung Limbawan Keningau who also joined the familiarization visit organised by the Indonesian Consulate General in Kota Kinabalu, encouraged more people to come and see what Nusantara can offer to the people on Borneo.
KJ Tan
Institution of Engineers, Malaysia (IEM), Sabah Vice Chairman Ir. Ts. KJ Tan, JP agrees with Phoong on the immense potential of Borneo as a future growth center, especially with Nusantara’s development.
He said this complements the Sabah Maju Jaya Development Plan’s (SMJDP) emphasis on enhancing Sabah’s economic positioning through strategic regional cooperation and infrastructure development.
Tan also said the building of the Serudong-Tawau highway and CIQS aligns with the SMJDP’s infrastructure focus, particularly in improving connectivity within Sabah and with neighboring regions to promote trade and investment.
“Positioning Kota Kinabalu as a connectivity hub leverages Sabah’s geographic advantage, aligning with SMJDP’s goals to increase international connectivity and attract foreign investments,” he added.
During the visit to Balikpapan on November 27, SCCC signed a memorandum of understanding (MoU) with Kamar Dagang dan Industri (Kadin) Kalimantan Timur to strengthen mutual cooperation to enhance and promote bilateral trade and relations between Sabah, Malaysia and East Kalimantan, and to advance the economic growth and development of both countries.
Tan, who is also SCCC Secretary General, said the MoU underscores efforts to strengthen regional collaboration.
“This ties directly to SMJDP’s goal of enhancing trade and fostering economic partnerships with neighboring regions,” he said.
Spread over an expansive 322,429 hectares, Nusantara is envisioned as a sustainable and futuristic capital that balances urbanization with environmental conservation.
This US$30 billion project, divided into four phases, represents one of Southeast Asia’s most ambitious urbanization projects, with far-reaching implications for regional economic growth and investment.
For Sabah’s investors and businessmen, Nusantara presents a golden opportunity to engage in diverse sectors ranging from infrastructure to green energy, real estate and technology.
Construction for the grand city began in July 2022. When it is completed in 2045, Nusantara aims to be a green and smart city complete with flying taxis, autonomous vehicles, logistical drones and robots.
By the end of 2024, development on phases one and two has reached over 80 per cent. This is despite earlier reports that it was facing significant delays and funding issues.
President-elect Prabowo Subianto has pledged to continue construction after Joko Widodo or Jokowi steps down, but there are questions whether Nusantara will be one of his priorities.
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