Kalimantan's ASEAN trade corridor: Capturing more local value

Jakarta (ANTARA) - The planned rollout of the ASEAN Customs Transit System (ACTS) along the Kalimantan Corridor from 2027 will deepen trade links between Indonesia and Malaysia.

The system is designed to allow goods to move across ASEAN borders under simpler and more coordinated customs transit procedures.

The Jagoi Babang-Serikin route in West Kalimantan will be one of the key links in an increasingly integrated cross-border trade network.

Indonesia's Deputy Trade Minister Dyah Roro Esti Widya Putri has highlighted the need for infrastructure, a legal framework, and procedures to support the Kalimantan ACTS corridor. All three will be critical when the system begins operating.

But once the route is ready, the bigger question will be how much economic activity it generates along the corridor.

Easier movement of goods will increase demand for collection, storage, packaging, financing, transport, and distribution. New business opportunities can emerge between production centers and markets.

Cross-border trade in West Kalimantan is already showing signs of that potential. The value of exports through the Jagoi Babang Border Crossing rose from Rp58.73 billion in 2023 to Rp75.39 billion in 2024 and Rp101.74 billion in 2025.

Through August 2026, exports had reached about Rp109.40 billion, with agricultural and fishery products accounting for much of the trade.

Capturing more value

The opportunity is particularly visible in fisheries. Fishery exports through the Jagoi Babang crossing totaled 676.96 metric tons, worth Rp16.09 billion, through August 2026.

Products included shrimp, crab, shellfish, pomfret, snapper, squid, Spanish mackerel, grouper, swimming crab, cuttlefish, salted fish, and other seafood. The trade involves both companies and micro, small, and medium-sized enterprises (MSMEs).

These products already have a market. The question is how much economic value the region can capture from that trade.

The value retained locally can differ significantly depending on whether products are sold raw or after going through cold storage, sorting, processing, packaging, and certification.

The same applies to agricultural products, which can command higher value after sorting, packaging, storage, and distribution.

Bengkayang illustrates how much room remains. Acting Head of the Bengkayang Industry and Trade Office Yakobus said only a limited number of local MSME products have reached the Malaysian market, including bidai woven mats and Anen cassava chips.

Vegetables, fruit, fish, meat, and other products also have potential in Malaysia, he said. But businesses still need stronger processing and packaging capacity, more consistent production, and certifications, including halal certification.

Market access does not automatically translate into sustained exports. Businesses need the capacity to produce consistently and meet the standards of the market they are trying to enter.

That gap between corridor readiness and local business capacity could determine who captures the economic gains from greater connectivity.

Roads and border facilities can speed up the movement of goods, while processing, storage, certification, financing, and distribution may still take place elsewhere.

Trade can grow without the local economy capturing a proportionate share of the additional value. Goods may leave the region faster while higher-value activities remain with businesses that have facilities, capital, or networks outside Kalimantan.

Capturing more of that value does not necessarily require large industrial facilities.

Farmers can move into sorting and packaging. Fisheries businesses can develop cold-chain services. MSMEs can expand production and meet cross-border standards. Local businesses can also enter warehousing, transport, trade finance, and distribution.

The more stages of the supply chain that are carried out near the source of the goods, the greater the share of trade value that can circulate within the local economy.

Preparing for the shift

Border modernization will change how businesses operate as well as how goods move.

The construction of a Customs, Immigration, Quarantine and Security (CIQS) complex in Serikin, Sarawak, Malaysia, directly across from Bengkayang, is targeted for completion in 2027 and is expected to begin operations in 2028.

Meanwhile, the Bengkayang administration and the central government are reviewing how trade patterns around Serikin could change as the border becomes more formally organized, while seeking to preserve existing traditional trade activity.

The transition will raise requirements for documentation, product standards, supply continuity, and supporting facilities.

Traders who have relied on traditional cross-border practices will need to adapt as cargo movements become more formalized and procedures more standardized. The ability to supply markets consistently will become increasingly important as trade access expands.

The timing of infrastructure development also matters.

On the Malaysian side, the Serikin CIQS facility is targeted for completion in 2027 and operation in 2028.

On the Indonesian side, an international freight terminal in Jagoi Babang, Bengkayang, has been included in the Transportation Ministry's strategic plan and is scheduled to begin construction in 2029.

That gap gives local businesses time to prepare. But it also creates a window in which demand for logistics and trade-support services could grow before the necessary infrastructure is available.

If trade volumes increase before local facilities are fully available, demand for storage, cargo consolidation, inspection, transportation, and distribution will rise. If those services are not available locally, businesses from outside the region will have an easier opportunity to fill the gap.

West Kalimantan already has a base from which to build. Exports through Jagoi Babang are rising, local products have established markets in Malaysia, and customs authorities are facilitating trade for businesses, including MSMEs.

The next stage is to make sure growth in cargo flows is matched by growth in local business activity.

For agriculture, collection, sorting, packaging, and storage can be strengthened. In fisheries, cold-chain infrastructure and processing can expand. For MSMEs, production capacity, certification, and access to financing will determine whether they can supply cross-border markets consistently.

The economic impact of the Kalimantan ACTS corridor will depend in large part on how much of this activity develops along the route.

Smoother transit can increase trade, but the share of economic value retained locally will depend on how many stages of the supply chain local businesses can capture before goods reach the market.

Greater connectivity with Malaysia and the wider ASEAN market gives West Kalimantan a broader commercial reach.

The opportunity is to turn that access into more processing, services, and business activity at home, allowing more of the value generated by cross-border trade to stay in the region.

*Martha Herlinawati Simanjuntak is a journalist at the ANTARA News Agency

Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of the ANTARA News Agency.

Related news: Indonesia, Malaysia agree to boost Entikong-Tebedu border trade

Related news: Indonesia, Malaysia ink Border Trade Agreement update