PETALING JAYA: Economists have given Sarawak the thumbs up for its participation in Indonesia’s Mentarang hydroelectric dam, saying the state is headed in the right direction with this foray into Kalimantan.
Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the move would strengthen Sarawak’s position as the regional powerhouse in hydropower development while contributing to the Asean Power Grid initiative.
He told FMT that Sarawak also stood to continue supplying surplus electricity regionally.
Academy of Sciences Malaysia fellow Madeline Berma agreed with Lee, saying Sarawak’s heavy investments in renewable energy would make it the centre of alternative energy in Asean.
She said this endeavour would create new economic and business opportunities for both Sarawak and Sabah, while strengthening business relationships.
“For example, Sarawak has been exporting electricity to Kalimantan. With Nusantara to officially become Indonesia’s new capital next year, it will provide Sarawak with opportunities to be involved in building more hydroelectric dams in Indonesia,” she said.
Through Sarawak Energy Berhad (SEB), the Sarawak government has 25% equity in the Mentarang dam project’s holding company, along with PT Adaro Energy Indonesia Tbk, which has 50% equity, and PT Kayan Patria Pratama.
The US$2.6 billion project’s groundbreaking ceremony was attended by Sarawak premier Abang Johari Openg and Indonesian President Joko Widodo on March 1.
Lee said Sarawak and Indonesia should improve their respective cross-border accessibilities through seamless exit and entry checkpoints, more accessible transportation modes and an integrated Customs, Immigration, Quarantine and Security (CIQS) facility.
He also said Sarawak should leverage on its competitive advantage in resource-based industries, including oil and gas, to establish bilateral cooperation with Indonesia.
“There will be mutual benefits between Sarawak and Indonesia in trade, economic, business and investment if both sides work together at the government and private sector levels to forge strong bilateral economic relations with each other,” he said.
He also said Sarawak’s construction and services industries were expected to see strong growth during the construction of the new Indonesian capital.
Madeline said Sarawak should look into investing even more in Kalimantan as there were plenty of business opportunities available with the capital shift to Nusantara.
She said if Sarawak can provide Jakarta with what it needs for the shift- from building materials, labour and machinery to food, services, transport and accommodation – it would greatly benefit the state.
“Also, culturally, Sarawak and Sabah share many things in common with Kalimantan, making it easier to conduct business,” she said.
Madeline also said Sarawak should build more higher education institutions to attract Indonesians to study there.
Source: https://www.freemalaysiatoday.com/category/nation/2023/03/07/sarawak-headed-in-right-direction-with-kalimantan-dam-project-say-economists/