PALMOILMAGAZINE, SAMARINDA — The State Government of Sarawak, Malaysia, has expressed strong interest in forging a strategic partnership with East Kalimantan (Kaltim), Indonesia, particularly in the areas of palm oil downstream development and renewable energy expansion. The potential collaboration was discussed during an official visit by Sarawak Deputy Premier Datuk Amar Haji Awang Tengah bin Ali Hasan, who was welcomed by East Kalimantan Deputy Governor Seno Aji in Samarinda on Sunday (July 27, 2025).
“There are tremendous business opportunities in East Kalimantan. We welcome Sarawak’s initiative and are ready to move forward with real cooperation,” said Seno Aji, as quoted by Antara during the meeting.
Also attending the discussion was Fahmi Prima Laksana, Head of East Kalimantan’s Investment and One-Stop Services Agency (DPMPTSP). The Sarawak delegation emphasized their ambition to position Borneo Island as a new economic growth center in Southeast Asia.
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The geographical proximity, shared cultural roots, and the ongoing development of Indonesia’s new capital (IKN) were highlighted as key factors supporting deeper regional economic integration between the two Bornean territories.
Sarawak showed a particular interest in East Kalimantan’s palm oil downstream program, which holds great potential for developing value-added palm derivatives. The collaboration is expected to increase the value of fresh fruit bunches (FFB) from local farmers while also generating new employment opportunities in the region.
Beyond palm oil, the strategic dialogue covered other potential sectors, including healthcare, education, trade, and cross-border investment.
One concrete proposal raised during the meeting was the creation of a regional distribution route connecting East Kalimantan, North Kalimantan, Sarawak, and even Brunei Darussalam. This corridor is aimed at reducing logistics costs and boosting the flow of goods and economic mobility across the sub-region.
“The visit from Sarawak reaffirms East Kalimantan’s strategic role—not only as an investment gateway to IKN, but also as a driver of subregional cooperation within the BIMP-EAGA framework,” said Seno Aji, referring to the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area initiative.
The East Kalimantan provincial government, he added, is committed to facilitating and ensuring the implementation of these partnership opportunities to deliver tangible benefits for communities on both sides.
This effort aligns with East Kalimantan’s long-term strategy to expand international collaboration networks and accelerate green and sustainable economic transformation. (P2)
