Indonesia advances transport corridor linking with Malaysia, Brunei

Indonesia is moving forward with plans to establish a transport corridor linking it with Malaysia and Brunei, as part of the ASEAN Connectivity 2063 (ACTS) initiative. Scheduled to commence operations in 2027, the corridor aims to streamline transit times and lower transportation expenses by minimizing repetitive procedures at border crossings. A key aspect of ACTS is the application of a unified guarantee system for taxes and fees that may occur during transit.

A unique characteristic of ACTS is that approved transport vehicles can continue their journey across borders without the need to transfer goods to vehicles of the host country at each border crossing. Vehicles must meet specific technical standards and receive an ASEAN goods vehicle cross-border permit. Each member nation is allowed to issue a maximum of 500 permits to eligible vehicles.

Indonesia views the Kalimantan Corridor as particularly crucial, as Kalimantan, along with territories of Malaysia and Brunei on the island of Borneo, forms a continuous geographical region. Kalimantan accounts for the majority of Borneo's land area.

The development of the transport corridor under ACTS is anticipated to alleviate procedural obstacles and enhance road transport connectivity and the flow of goods among the three countries. ASEAN has endorsed pilot rail transport within the framework of ACTS and has encouraged Brunei and Indonesia to officially join the system along the Borneo Corridor.

ASEAN is also exploring the prospect of integrating ACTS with China in the future, which could broaden trade networks and enhance the economic benefits derived from regional transport routes.