BNPP Discusses Free Trade Zone Development at Malaka Border

The National Border Management Agency (BNPP) of the Republic of Indonesia received an audience from the Regional People’s Representative Council (DPRD) of Malaka Regency to discuss the proposal for a free trade zone in the border area between Malaka Regency and the Democratic Republic of Timor-Leste (RDTL). Deputy Chairman of the Malaka Regency DPRD, Lambertus Bria, stated that the idea for establishing a free trade zone arose from the urgent need to stimulate the border economy, particularly after Malaka Regency was separated from Belu Regency. “Our goal is to encourage increased employment, entrepreneurship, and economic equality in the border region. With a free trade zone, border communities can more optimally utilise cross-border economic opportunities,” Lambertus said in a statement in Jakarta on Friday. Lambertus assessed that cross-border economic activity in the Malaka region still lags behind other border areas. He also highlighted the limited value of cross-border transactions at the Motamasin Integrated Cross-Border Post (PLBN) and the need for infrastructure and regulatory support so that trade activities can grow sustainably. He added that the Provincial Government of East Nusa Tenggara has responded to the idea by drafting a plan for a free trade zone in the border area. The Malaka Regency DPRD hopes that BNPP’s support can strengthen cross-ministry and institutional coordination so that the plan can be followed up concretely, including improving road access to Motamasin and reactivating the border market. In response, BNPP Deputy for Potential Border Area Management Edfrie R. Maith conveyed that BNPP in principle supports efforts to improve the economy of border communities, including through a free trade zone scheme. However, he emphasised that the realisation of such a policy requires a comprehensive study and a bilateral agreement between the two countries. “We have previously studied free trade zone practices at the borders of other countries. Conceptually, it is very feasible, but it must begin with a cooperation agreement between nations because it involves neutral territory and sovereignty,” said Edfrie. He mentioned that BNPP has prepared an initial masterplan for the Motaain border area as a pilot location, considering it is one of the busiest routes. Edfrie also stressed the importance of strengthening supervision and law enforcement in border areas to prevent smuggling practices that could harm the state. According to him, optimising the role of security forces and coordination with local governments is key to ensuring that the development of border economic zones goes hand in hand with regional security and order. Besides the free trade zone issue, the audience also discussed follow-up development programmes in the border area, including central government support for the renovation of uninhabitable houses through the Self-Help Housing Stimulus Assistance Programme (BSPS), which is also allocated for Malaka Regency. Through this audience, BNPP and the Malaka Regency DPRD agreed to strengthen synergy and communication in promoting inclusive and sustainable border area development. Going forward, BNPP will accommodate and review regional proposals as material for cross-sector coordination, with the hope that the Malaka border area can grow into a leading, safe, and prosperous front porch of the nation.