KUALA LUMPUR: Malaysia will benefit from Indonesia’s decision to relocate its capital to East Kalimantan on Borneo island, Deputy Foreign Minister Datuk Marzuki Yahya told the Dewan Rakyat.

According to Marzuki, Indonesia’s decision to relocate its capital could see an increase in the population as well as economic activities in Borneo.

“This will give a lot of benefits to Malaysian states, particularly Sabah and Sarawak, and will also bring about new challenges.

“The relocation of the Indonesian capital will also stimulate the economy in Borneo, and Sabah as well as Sarawak will be able to benefit.”

Marzuki was responding to Larry Sng Wei Shien (PH-Julau), who asked the Foreign Affairs Minister about the government’s stand in regard to the relocation of the Indonesian capital to East Kalimantan.

At the same time, Marzuki also said the tourism sector in Sabah and Sarawak is expected to grow, given the close proximity between Kalimantan and the two states.

The relocation is also expected to open up many new opportunities to increase economic collaboration between Malaysian and Indonesia, he said.

“Particularly for the Borneo region with the involvement of developers and Malaysian contractors who can take part in development projects in East Kalimantan, ” he added.

Marzuki also said the government believes that Indonesia’s decision will not affect bilateral ties with Malaysia.

“Bilateral ties between Indonesia and Malaysia improve each day, ” he said, adding that the government will be holding negotiations to ensure that implications caused by the relocation of Indonesia’s capital will be beneficial for all.

He said that as a close neighbour of Indonesia, Malaysia is always ready to share its experience and expertise if needed, given its experience in relocating its administration from Kuala Lumpur to Putrajaya.

The Indonesian government intends to move to East Kalimantan by 2024, which would be the end of President Joko Widodo’s second five-year term in office.

Read more at https://www.thestar.com.my/news/nation/2019/10/14/malaysia-will-benefit-from-indonesia-relocating-its-capital-to-kalimantan