Informal Cross-Border Trade Sarawak (Malaysia)-Kalimantan (Indonesia): A Catalyst for Border Community’s Development

Abstract

Cross-border entrepreneurship activity plays an important role in the community economic development programs. The emergence of business groups and trade activities will generate employment, create wealth, contribute to tax revenue and stimulate the construction of infrastructures such as transportation. Indirectly, this will improve the standard of living in the border communities. The cross-border trade activities between Sarawak (Malaysia)-Kalimantan (Indonesia) continued to grow significantly. Although there is no formal cross-border route and Checkpoint of Immigration and Quarantine (CIQ) exists, Serikin as a small border town has developed as a Weekend Market focuses on informal trade. Indonesian traders and Malaysian consumers gathered on weekends to carry out transactions and this triggers local development. This article discusses the cross-border informal trade activities by focusing on the business participation factors and reasons for location selection, especially among Indonesian traders and spillover effects on the local communities.

Exploring Contemporary Security Issues Near Sarawak-Kalimantan Border

“…For example, due to the porous borderline between these two states, economic activities flourish near the border, allowing transnational transactional activities between people of Sarawak and Kalimantan. People living near Sarawak and Kalimantan borders have lived in peace through cultural sharing and active economic activities (Bariyah, Lau, & Mansor, 2012;Awang, Sulehan, Bakar, Abdullah, & Liu, 2013). Due to the proximity of both states, people on both sides of the borders have had blood, and social ties since long before modern geopolitical boundaries were established (Ardhana, Langub, & Chew, 2004).…”

Cross-Border Entrepreneurship: A Preliminary Study On Informal Entrepreneurs In Sebatik Island

“…It is a joint initiative involving several partners representing entrepreneurs, non-government agencies and government agencies, aimed to build economic cooperation between border regions. Nevertheless, often, small entrepreneurs in remote border villages do not register their businesses on the other side of the border, though they sell goods or buy raw materials to (or from) neighbouring region (Awang et al, 2013;Smallbone & Welter, 2012). Cross-border entrepreneurship is often proposed by governments as an incentive for economic growth.…”

“…In fact, in many developing regions, cross-border entrepreneurship, including cross-border informal trade, has been regarded as one of the mechanisms to develop economic growth of the local community (Aralas et al, 2017;Bariyah et al, 2012). Nevertheless, many previous researches highlighted several common strategic issues pertaining cross-border entrepreneurship in Malaysia, including socioeconomic vulnerability, security, ethnic relations, and business practice differences (Awang et al, 2013;Sunarya & Sudaryono, 2016;Thai & Turkina, 2014). For example, the Malaysia-Indonesia border in the Sarawak-Kalimantan region, faced myriad of issues, and became socio-politically vulnerable, that led to border conflicts between Malaysia and Indonesia.…”

“…In Malaysia, entrepreneurship activity in the cross border plays a significant role in the socio-economic development in the country. The emergence of crossborder trade, including the informal sector will generate employment, create wealth and indirectly will stimulate the construction of better infrastructures (Awang et al, 2013) and eventually improve the standard of living in the border communities. It is found that research on entrepreneurship in border community, especially between countries sharing their borders are not being explored sufficiently, particularly in rural areas.…”

The Administration of Small-Scale Economies in the Cross- Border Trade in Southeast Asia

“…However, the presence of Serikin market is not through bilateral agreements, nor is it a region with servitude for Indonesia, but the area is deemed to be like the servitude intended for Indonesia. In relation to its strategic location, cross-border trade in Serikin, and its implications for bilateral relations, security and border politics, has become a special study in Southeast Asian studies (Awang et al, 2013;Djafar et al, 2016;Hutasuhut et al, 2018;Abao, 2020;Awang et al, 2017;Sulehan et al, 2013;Hsia, 2019;Azmi et al, 2017). However, much of the focus of previous studies has only been on relations between border populations and informal trade relations, and does not specifically address the existence of such regions in terms of international law and regional economics at large.…”