East Kalimantan, Sabah must work closely: Tan

Monday, November 12, 2012

Industrial Development Minister Datuk Raymond Tan

BALIKPAPAN: East Kalimantan, Indonesia and Sabah as well as other areas within the BIMP-EAGA should work closely together and find common solutions to face serious economic challenges in view of prevailing weak global economic conditions. 

 "We are so close to each other. It is imperative that we integrate and consolidate our production and marketing strategies. I am here to explore such possibilities," Industrial Development Minister Datuk Raymond Tan told Balikpapan Mayor Rizal Effendi. Tan called on Rizal Saturday to discuss and explore a number of areas on which closer business and industrial actions could be forged between East Kalimantan and Sabah. 

During the discussions, Tan found many areas of development in East Kalimantan that were experiencing a similar situation in Sabah, namely the development of port facilities and activities related to the oil and gas industry. 

"One of the top priorities of BIMP-EAGA is to improve connectivity and I see from our discussion here today that there are specific areas whereby this improvement could be made," said Tan. 

Both Tan and Rizal agreed, for instance, that airlines operating in this Borneo region should seriously consider re-establishing direct air links between the cities of Kota Kinabalu with Balikpapan, the second largest city in East Kalimantan. 

Tan, who is here on a two-day visit, also assured that his ministry would take this matter up and make a formal appeal to the airlines concerned for their attention. 

"We shall show the potentials of air travel volume for such a direct air link once it is in place, not only for tourism but for education, specialist medical care that is now available in the capital of Sabah and other purposes," he stressed.


Rizal said he supported the idea of direct air connectivity between the two Borneo cities and agreed to provide the necessary inputs from Balikpapan's point of view on the matter. 

Later, the Sabah delegation toured the Balikpapan Port Authority where they were given an opportunity to study how operations at the port and the shipment of products were being managed. 

The Sabah visitors were briefed at the port by Alex Hironimus, the ship service manager, who disclosed that like Kota Kinabalu, Balikpapan has developed a new container terminal about 27km away from the Balikpapan City centre. 

Known as the Kariangau Container Terminal, it occupies 72.5 hectares with a capacity of 250,000 twenty-foot equivalent units (TEUs). 

Shortly upon arrival here on Thursday, Tan also toured the Indonesia Oil and Gas Expo (IGEX) 2012 held at the International Sports and Convention Centre (Dome) organised by PT Fireworks Indonesia with over 100 exhibitors. 

Among several Malaysian pavilions he visited were that of Tekno Logam Sdn Bhd, a manufacturer of gaskets and seals and a supplier of fluid sealing products for industries, in particular O&G and power generation. 

On hand to accompany him on the tour of Malaysian booths was Nadzri Shamsudin, Trade Commissioner of Jakarta-based Malaysian External Trade Development Corporation (Matrade), the agency that facilitated Malaysian participation at the IGEX. 

Speaking to a reporter of a local TV station, Tan stressed that his mission here was to promote closer trade and industrial links and cooperation within the Borneo provinces and states, like East Kalimantan and Sabah, in the context of BIMP-EAGA. 

"It is my hope that industrialists here in East Kalimantan and Balikpapan will take a serious look at investment prospects in Sabah that is not far away from here," he said. 

There were many avenues open for industrial joint ventures and collaboration between the State of Sabah and East Kalimantan, especially in the oil and gas industry, he added. 

Among the officials accompanying Tan on his visit here were Haji Abdul Kadir, Chief Executive Officer of the Sipitang Oil & Gas Industrial Park (Sogip); Datuk Dr Pang Teck Wai, CEO of POIC Sabah Sdn Bhd; Dr Tarsiah T Z Taman, CEO of KKIP Sdn Bhd, and Harry Sow, Chief Operating Officer, KKIP project, Tan Chong Group. 


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