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Indonesia–Malaysia connectivity: Sabah and North Kalimantan maritime connectivity to boost economic cooperation post covid-19
Border area has an important role in bilateral trade between countries. The proximity of border areas has established strong border communities’ relationships not only social but also economic. Therefore, Indonesia and Malaysia have signed Border Trade Agreement 1970 which have the purpose to facilitate people at the border area to fulfil their basic need through direct trade with their neighboring country, which limited to RM600.00. In its development, trade at the border area is not only for meeting basic needs but also for international trade. The main problem at the border is the lack of logistic infrastructure for delivering goods. Due to BTA 1970 only focus on fulfilment of basic needs, the transportation provided only passenger ferry for people to bring the goods by hand carry. Hence, the trade between both region is far beyond the basic needs fulfilment. The lack of logistic transportation at the border has caused the border citizen prefer the activities of illegal trading and smuggling. Illegal trading and smuggling become common activities at the border due to no logistic infrastructure for international trade. In this connection, the maritime connectivity at the border of Sabah and North Kalimantan shall be the answer to reduce illegal trading and smuggling.
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