KUALA LUMPUR, March 16 — Defence Minister Datuk Seri Hishammuddin Hussein today said that Indonesia’s new capital, Nusantara, in East Kalimantan will help boost the economies of both Malaysia and the republic.

However, he also cautioned that its establishment could lead to a rise in transboundary crimes in the area.

The Sembrong MP was responding to a question from Sibuti MP, Lukanisman Awang Sauni, who had asked if the Indonesian capital’s relocation from Jakarta to Kalimantan would have any effect on the nation’s security.

"For your information, the relocation of Indonesia’s capital city to Kalimantan is expected to have a positive impact and contribute to the economic growth of both nations, especially along the Sarawak-Kalimantan border.

"However, despite the positive impact on the economy, it still could have a negative impact on security, especially in terms of transboundary crimes, such as the entry of undocumented migrants, human trafficking, and the smuggling of controlled items. For now, based on the reports that we have received, the relocation will not be happening anytime soon.

"So far, it is still in the early stages. The relocation process will also involve several phases. The first phase is expected to start this year and last until 2024. This gives enough time for the ministry to put together a comprehensive plan in terms of the level of preparedness and capability of the Malaysian Armed Forces (ATM) at the borders of Sabah and Sarawak,” he added.

However, Hishammuddin said that several initiatives were already in the pipeline, including the construction of 14 ATM control posts along the Sarawak-Kalimantan border and five ATM control posts along the Sabah-Kalimantan border by year-end, as well as boosting border monitoring and surveillance operational capabilities, especially with high-tech assets.

This, he said, was to reduce the dependency on conventional surveillance methods, which is done physically and is less effective, due to the natural landscape of the Sarawak-Kalimantan border.

In January, the Indonesian Parliament approved a Bill to relocate the country’s capital from Jakarta to a site in Kalimantan on Borneo island.

The initial relocation will start from between 2022 and 2024, with roads and ports prioritised to enable access, with some projects operating as public private partnerships, the finance ministry said.

President Joko Widodo first announced his plan in 2019, but progress was delayed by Covid-19.