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East Kalimantan–Sarawak Explore Strategic Partnership in Palm Oil Downstreaming and Energy



Doc. InfoSAWIT/Ilustration of Crude Palm OIl (CPO).
East Kalimantan–Sarawak Explore Strategic Partnership in Palm Oil Downstreaming and Energy

InfoSAWIT, SAMARINDA — The Government of Sarawak, Malaysia, has expressed interest in forming a strategic partnership with East Kalimantan (Kaltim), particularly in palm oil downstreaming and renewable energy development. This potential collaboration was discussed during a courtesy visit by Sarawak Deputy Premier Datuk Amar Haji Awang Tengah bin Ali Hasan, who was received by Kaltim Deputy Governor Seno Aji on Sunday (27 July 2025) in Samarinda.

“Business opportunities in Kaltim are vast. We welcome Sarawak’s initiative and are ready to follow up with real cooperation,” said Seno Aji during the meeting, as quoted by Antara.

Also present was the Head of Kaltim’s Investment and One-Stop Services Agency, Fahmi Prima Laksana. The Sarawak delegation expressed strong interest in positioning Borneo as a new economic growth hub in Southeast Asia.

Geographical proximity, shared cultural heritage, and the presence of the new capital Nusantara (IKN) were highlighted as ideal factors for enhancing regional economic integration.

Sarawak particularly emphasized the downstreaming of Kaltim’s palm oil industry, which holds high potential for high-value derivative products. This collaboration is expected to boost FFB prices for farmers and create new jobs.

Beyond palm oil, discussions extended to other sectors like health, education, cross-border trade, and investment.

One notable proposal was to establish a regional distribution corridor connecting East Kalimantan, North Kalimantan, Sarawak, and Brunei Darussalam. This would reduce logistics costs and accelerate the flow of goods and economic mobility.

“The visit reaffirms Kaltim’s strategic position—not only as an investment gateway to IKN but also as a sub-regional cooperation engine under the BIMP-EAGA framework,” said Seno Aji, referring to the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area.

The Kaltim government committed to facilitating and monitoring the implementation of these collaborations to bring tangible benefits to the people of both regions.
(T2)

 


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