Indonesian Political, Business & Finance News

BNPP RI Receives Malaka DPRD Delegation, Discusses Border Free Trade Zone Development

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
BNPP RI Receives Malaka DPRD Delegation, Discusses Border Free Trade Zone Development
Image: MEDIA_INDONESIA

The Indonesian National Border Management Agency (BNPP RI) received an audience from the Malaka Regency Regional House of Representatives (DPRD) to discuss the proposal for a free trade zone in the border area between Malaka Regency and the Democratic Republic of Timor-Leste, on Thursday (11/06/2026).

Led by the Deputy for Border Area Potential Management of BNPP RI, Inspector General Pol. Edfrie R. Maith, the meeting served as a strategic forum to convey the aspirations of border regions regarding the acceleration of economic growth and the improvement of community welfare through the development of a free trade zone.

The discussion focused on the potential of the Malaka border area, which is considered to have significant opportunities for development as a hub for cross-border trade activities.

The Deputy Chairman of the Malaka Regency DPRD, Lambertus Bria, explained in his presentation that the idea for forming a free trade zone stems from an urgent need to stimulate the border economy, particularly since Malaka Regency was split from Belu Regency. He noted that, to date, cross-border economic activities in the Malumbara region still lag behind other border areas.

“Our goal is to encourage job creation, entrepreneurship, and economic equality in the border region. With a free trade zone, border communities can more optimally utilise cross-border economic opportunities,” said Lambertus.

He also highlighted the limited value of cross-border transactions at the Motamasin Integrated Border Post (PLBN) and the need for infrastructure and regulatory support to ensure sustainable trade growth.

Lambertus added that the East Nusa Tenggara Provincial Government has responded to this idea by preparing a plan for a free trade zone in the border area.

The Malaka DPRD hopes that support from BNPP RI can strengthen coordination across ministries and agencies so that these plans can be concretely implemented, including improving road access to Motamasin and reactivating border markets.

Responding to the proposal, Inspector General Pol. Maith stated that BNPP RI fundamentally supports efforts to improve the economy of border communities, including through free trade zone schemes. However, he emphasised that the realisation of such a policy requires comprehensive studies and bilateral agreements between countries.

“We have studied the practice of free trade zones in other national borders. Conceptually, it is very possible to implement, but it must begin with an inter-country cooperation agreement as it involves neutral territory and sovereignty,” explained Edfrie.

He mentioned that BNPP RI has developed an initial masterplan for the Motaain border area as a pilot project, given that this route is one of the busiest.

Inspector General Pol. Edfrie also emphasised 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 proceeds alongside regional security and order.

In addition to the free trade issue, the audience also discussed follow-up programmes for development in border areas, including central government support for renovating uninhabitable houses through the Self-Help Housing Stimulant Assistance (BSPS) programme, which has also been allocated for Malaka Regency.

Through this audience, BNPP RI and the Malaka Regency DPRD agreed to strengthen synergy and communication to promote the development of an inclusive and sustainable border area.

Moving forward, BNPP RI will collect and study regional proposals as material for cross-sector coordination, so that the Malaka border area is expected to grow as a developed, safe, and prosperous gateway for the nation.

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