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BIMP-EAGA to Ease Border Rules
Putri Prameshwari | June 25, 2009

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Manado. Indonesia and three neighboring nations agreed at a meeting in North Sulawesi on Thursday to further ease cross-border transportation of goods and passengers.

Indonesian Transportation Minister Jusman Syafii Djamal said the four countries — meeting as the already established Brunei, Malaysia, Indonesia and Phillippines East Asean Growth Area (BIMP-EAGA) — gave particular attention to cargo handling.

BIMP-EAGA covers Brunei, the Indonesian provinces and Malaysian states of Sabah and Sarawak on Borneo Island, Sulawesi, Maluku and Papua, and Sulu and Mindanao in the southern Philippines.

The current focus of the group concerns the subregion of Borneo, Sulawesi and the southern Philippines. “One major outcome of the meeting was the signing of a memorandum of understanding on transit and the interstate transport of goods,” Jusman said.

Under this arrangement, cargo transportation within the four countries would be given more freedom, which Jusman said would be detailed in a proposed framework to be discussed in the near future.

“The main aim is to ensure easier access for the cross-border transportation of goods,” he said, adding that the framework would include easier access into each country for registered cars, cross-border permits and a certification process.

The framework would also increase transportation incentives within the four countries.

As an example, Jusman said aircraft and vessels from the four countries would be given concessions on airport and seaport fees at designated cities. It was the group’s fourth ministerial level meeting.

Tri Sunoko, the director of air traffic at the Indonesian Transportation Ministry, said the group added one Indonesian city to the existing list.

“Makassar is now included in the destination list,” he said. “Malaysia also added Sandakan as a new entry point.”

Under the agreement, airlines are free to open any routes between the designated cities.

However, Tri said that because of the relatively short distances involved, there were snags over demand and load factors.

“Airlines could operate smaller aircraft with 30 people on board rather than a 140-seater Boeing 737,” he said.

He said that for the open-sky deal between the four countries to work as intended, the load factor need to be more than 80 percent.

In sea transportation, there will be a trial run of a ferry service between Muara in Brunei and Menumbok in Malaysia, starting next month.




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