Indonesia advances transport corridor linking with Malaysia, Brunei

Indonesia is preparing infrastructure and finalizing the legal framework and procedures for the Kalimantan Corridor under the ASEAN Customs Transit System (ACTS), thereby promoting freight transport connectivity among Indonesia, Malaysia, and Brunei on the island of Borneo.

The corridor is expected to begin operations in 2027.

According to the official portal of the Association of Southeast Asian Nations (ASEAN), ACTS aims to shorten transit times and reduce transportation costs while limiting repetitive procedures at border crossings.

The mechanism also allows for the application of a common guarantee system for taxes and fees that may arise during transit.

A general view of the city skyline of Jakarta, the capital city of Indonesia, Aug. 5, 2021. Photo by Reuters

A notable feature of ACTS is that licensed transport vehicles can continue their journey across borders without having to transfer goods to vehicles of the host country at each border crossing. Participating vehicles must meet technical requirements and be granted an ASEAN goods vehicle cross-border permit. Each member country can issue a maximum of 500 permits to eligible vehicles.

For Indonesia, preparations for the Kalimantan Corridor are of significant importance because the territories of Indonesia, Malaysia, and Brunei on the island of Borneo form a contiguous geographical area. Kalimantan occupies the majority of the island's territory.

The formation of the transport corridor under ACTS is expected to help reduce procedural bottlenecks and strengthen road transport connectivity and the flow of goods among the three countries.

ASEAN has welcomed pilot rail transport within the framework of ACTS and encouraged Brunei and Indonesia to officially participate in the operation of the system along the Borneo Corridor. It is also considering the possibility of connecting ACTS with China in the future, thereby expanding the trade network and economic benefits generated by regional transport routes.