STRATEGY FOR DEVELOPMENT OF BORDER REGION:

SPURRING ECONOMIC GROWTH OF ENTIKONG DISTRICT,

SANGGAU WEST KALIMANTAN PROVINCE

Eka Hidayat Taufik, Amran, Widy Tiawarman

Universitas Pasundan, Indonesia,ekahidayat01@yahoo.com, amranbks@gmail.com,
widytiawarman@gmail.com

ABSTRACT. The border region is now entering a new paradigm of regional development.
As a region due to globalization and decentralization policies, the security paradigm transforms
into prosperity and identity. Different characteristics from other regions (immobility factors of
production, transaction costs and delay, a different economic system, institutional issues, the
establishment of zoning and the role of the informal sector) encourage economic function in the
region internally and externally. Economic perspective in the border regions tends to increase
as the paradigm changed. From the previous background, Entikong is a border area with the
highest economic activities along the land border (West Kalimantan-Sarawak). Formal access of
this area opened in 1991 with the dynamics of economic activities proved by the increase in flow
movement (people and goods). From literature perspective, this region has a chance in the
economic growth, but so far, it has not shown any developments in the context of developing an
inter-state border region from an economic perspective that can support Entikong functions as a
growth center.

The main question is: “How is the border development strategy in spurring economic growth in
Entikong?”. To answer that question, the paper proposes a review of spatial and economic
aspects of the region as well as the best practice development of border areas that can help to
resolve the problem in Entikong.

The findings of this study show the economic growth occurred in Entikong. The Economic
growth has opportunities in the development of border area because this area has significant
capital equity in the development of border areas, i.e. cultural, institutional framework, private
sector interest, infrastructure, and policies approaches. The border development strategy is base
on the problems arisen from the above analysis. These strategies are encouraging a conducive
and operational regulatory, organizing road map of effective spatial planning and operations,
improvising on hard & soft infrastructure development that responds to the needs of
development, increasing the role of leading sector and encouraging other sectors in growth,
increasing attention to the sustainability of development and human resource development,
facilitating of internal and external trade.

KEYWORDS: border regions, economic growth, development strategy

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INTRODUCTION
Attention to interstate border areas and their implications for economic growth
tends to increase along with the function of this region as a resource boundary. The
economic opportunity arises because of the use of resources in the two adjacent territories
and their spatial proximity (Van Well, 2005; Niebuhr and Stiller, 2001). In addition,
increased economic growth opportunities are influenced by changes in the conditions of
the two countries towards cooperation which tends to increase the potential for movement
with the motive of economic opportunities (companies and individuals) due to the high
market potential in accommodating the various resources owned by the two regions
(Akaha and Vassilieva, 2005 : 1).

Entikong has the opportunity for economic growth in the border region. This area
is the border region with the highest economic activity along West Kalimantan – Sarawak
(Kompas, 2003). These economic activities are mostly the trade sector that grew due to the
opening of the formal border crossing between Entikong-Tebedu (Sarawak) since 1991. As
a cross-border gate, this area serves as the entrance and exit point for trade flows that occur
between regions, as well as being a location which is strategic for economic activity.

Entikong Subdistrict is one of 22 subdistricts which are administratively included

in the Sanggau Regency region with the following boundaries :

- The North is bordered by Sarawak (East Malaysia)

- The South is bordered by Landak Regency

- The East is bordered by the District Sekayam

- Westside is bordered by Seluas District, Bengkayang Regency

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 Entikong's strategic position and the presence of formal access to the border caused
the movement of commodity and human commodities to increase. The increase occurred
in the inflow and outflow. In terms of human movement, it tends to show an increase from
year to year with an average inflow higher than the outflow. The increase in movement is
caused by changes in the function of border crossing posts that are not only traversed by
traditional crossers but are also caused by non-traditional crossers.

Another focus on economic growth at the border besides economic

complementarity is market potential. Niebuhr and Stiller (2001) argue that the growth of
market potential in integrated border regions has a positive impact on increasing regional
income and increasing employment, which leads to economic growth in the border region.
In the context of the Entikong border region, various economic development potentials
have long been owned, but these conditions have not yet developed as an area that has
advantages (as an important point of geographical proximity to neighboring countries, this
region is a National Strategic Area regulated according to Government Regulation No. 26
2008 concerning National Spatial Planning and Border Development Center in accordance
with RTRW of West Kalimantan Province in 2004, although spatial proximity and
neighboring regional markets support the development of the area. Some examples of
cases inland border areas show that the impact of opening up border areas between
countries has potential in economic development in the two adjoining regions.

The role of opening formal access to Entikong-Tebedu (Sarawak) since 1991, is an

important step in economic growth at the border. The inauguration of the Cross-border
Checkpoint (CBCP) from the original Cross-border Checkpoint (PLB), made Entikong the
international and international gateway for Indonesia. These conditions change the role of

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an Entikong border region as the main door in connection with neighboring countries that
were previously traditionally carried out and aimed at improving the standard of living of
people in the border region.

The condition of the change in border status has an impact on the emergence of
economic activity both carried out by the border-specific community as well which is
outside the border. Contrasting with Sarawak who is able to develop the border area well,
the existence of Entikong as a border area does not seem ready in anticipating the
dynamics of a border region with economic potential and spatial proximity that should be
utilized.

"In the case of Entikong, what happens is a very high dependency with the
Malaysian side, because there is no solution to make products that can be
exported, while before the border is opened until after opening, people are
always oriented to shop across (for reasons of price, quality, procedures,
better bureaucracy) "(MSL / PU-06/01/04).

The Entikong border region has economic potential, strategic location, and formal
access support that should be able to develop like some of the other border areas
exemplified above. The development of a border area based on the potential can be done in
the context of economic growth in the development of a border region that is beneficial to
both parties (Wu, 2001). By looking at the urgency of handling a border area (such as
Entikong) that has a variety of economic potential, the perspective of economic growth at
the border is needed in formulating effective strategies in achieving the functions of the
border region, one of which is creating prosperity by spurring economic growth in the
region.

GOALS

Some goals to be achieved the objectives of this study are:

1. Identifying and analyzing the spatial border area of Entikong in terms of land use,
spatial structure and population;

2. Identifying and analyzing the economy of the Entikong border region;

3. Analyzing economic growth and developing border areas;

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4. Formulate a border development strategy based on the perspective of economic
development.

CONCEPTUAL FRAMEWORK

The purpose of this study is to formulate a development strategy for the Entikong
border region in encouraging economic growth. Development in border areas has different
regional characteristics from other regions. According to Wu (2001), there are several
fundamental criteria that are different from the conventional regional development
literature, namely: immobility of the factors of production, the existence of transaction
costs and delays, different economic systems, institutional issues, regional determination,
and the role of the informal sector. The economic dimension greatly influences the nature
of the border region, whether that possibility becomes an advantage or a loss from the
border region is highly depends on locality and the role of the government as a
policymaker (Wu, 2001).

Economic growth in the border region has an impact on economic integration

followed by changes in land use on the condition that there is an appropriate economic
climate (Niebuhr and Stiller, 2001). The development of the market potential as well as its
limitations, as well as the impact on the development of the region, is very instrumental in
the development of the border region. For this reason, a comprehensive study of the spatial
and economic aspects of understanding the context of the border region, especially for
border regions between countries and the economy as the main concern (Berg and Ehin,
2006; Niebuhr and Stiller, 2001; Gottmann, 1980).

In their review of border development policies in Europe, Berg and Ehin (2006)
propose an initial framework that focuses on three characteristics in border areas, namely:
1) the type of border attribute function, 2) the mode of government, and 3) the degree of
openness, where border development policies that are fit for certain conditions need to
consider all three aspects in their formulation.

In relation to the concept of boundary development policy, according to Wu (2001),

there are five key policy elements namely economic complementarity, private sector
interest, government intervention, the ability of institutional frameworks, and cultural
factors that have implications for border development.

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Approach to Border Area Development

According to Wu (2001), there are many approaches in developing border areas,

but there are three important factors in relation to the further development of the region,
namely: a development that is preceded by infrastructure planning and development (prior
to economic development activities), investment development in the private sector, and
policy program development.

a. Infrastructure Led- Development. This approach usually involves the government

and planning agents so that development can have a significant economic impact,
this approach is usually done on the grounds of remote locations, political and
security reasons. Examples are The Tumen River Development Zone and Hong
Kong – Shenzhen Special Economic Zone (SEZ) development.
b. Investment-Led Development. The concept of development based on investment is
mostly done in the border region, although this concept is usually preceded by the
dominance of the small and medium private sector (SMEs), some of the best
practices of this base development are found in Poland-East Germany, Thai-China
and Burma and Laos (TCBL) and China-Vietnam in Donxing and Mong Cai.
c. Policy-Led Development. In this connection, the European Union case is a
development based on monetary policy and borderless policy. The two policies are
supported by specific programs and financial assistance, some of the existing large
industrial developing zones such as the Upper Rhine, Baden Wuttenberg, and
Emilia-Romagna were built in the border region in the framework of integrated
development.

Related to regional development, according to Branch (1998), there are several

factors that influence regional development, including: physical form (land use and spatial
structure), regional function (function economy, trade and industry) which are affected by
the activities of the population, the nature of the community (culture and beliefs, social and
lifestyle), the availability of common elements (road networks, clean water, etc.). Some of
these factors play an important role in the development of the border region. The growth of
economic activity can be characterized by changes in spatial, social and infrastructure
aspects that develop.

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 The development of economic activities at the border is inseparable from the
market potential it has. By reviewing the location model and consideration of marketing
areas in an area, the border area can be seen as an area that is less profitable for developing
market potential. These considerations are based on some of the obstacles that normally
occur (tariffs, policies, and other obstacles) in the border region that cause the potential for
economic growth to not occur optimally due to reduced marketing coverage areas (Niebuhr
& Stiller, 2001).

DISCUSSION

The length of the Kalimantan region which borders directly with the State of
Sarawak (Malaysia) is around 1200 km. The borderline length of 70.58% is in the Province
of West Kalimantan (847.3 km) and crosses five districts, namely Sambas, Bengkayang,
Sanggau, Sintang, and Kapuas Hulu Regencies, covering 14 sub-districts.

West Kalimantan Province which borders directly with the state of Sarawak
(Malaysia) is more advanced than the border area in East Kalimantan Province (Ishak,
2003). In the border region of West Kalimantan, the first official Cross-Border Check
Point (CBCP) (Entikong-Tebedu) in Sanggau District was built in 1991 and the second
was built in Nanga Badau-Lubuk Antu located in Kapuas Hulu Regency. The CBCP is part
of six CBCP agreed with Sarawak to be opened at the border of West Kalimantan-Sarawak
(Paloh, Sajingan Besar, Jagoibabang, Entikong, Jasa Karangas Kagau, and Nanga Badau).

Land use in the study area is generally divided into built and non-developed areas.
A built area is an area where land use is dominated by intensive or productive urban
buildings, while an undeveloped area is an area whose natural form is still very dominant.

The spatial use pattern in Entikong District is still dominated by protected areas and
production forests (2003-2007). The protected area is divided into two groups, namely
conservation and river border. The total area of the conservation area reaches ± 80% of the
total area of the sub-district, not all parts of the area are planned to support cultivation
activities because of the conservation function.

Existing, relatively rapid city development and growth occur in the primary /
national arterial road corridor. Starting from the Entikong City bridge up to the border
between countries, the direction of development tends to lead to a linear pattern (ribbon

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development). This is a logical consequence of the growth of formal and informal
economic activities in the area around the border (West Kalimantan Provincial Public
Works Office, 2009).

Entikong Subdistrict is an area of an economic center that is relatively fast

developing. This area has excellent potential resources to be developed. Although it has
not been optimally excavated, the diversity of resources possessed to date has been able to
encourage local economic activities and encourage the activities of regional economic
units.

Another potential is the region's strategic position that allows this sub-district to
have direct access with Sarawak (Malaysia). The strategic position as a border area that has
direct access to neighboring countries is a push factor for the economic development of the
Entikong Region.

As a border area, Entikong's economy has progressed since the CBCP was opened.
Land access directly to Sarawak (Malaysia) has an impact on economic and socio-cultural
activities. The neighboring country is a potential market, not only for the interests of local
producers in the Entikong region but internally it can be utilized by producers in Sanggau
and West Kalimantan or even by national producers. Thus, the existence of CBCP besides
providing significant changes to the economic development of the Entikong Region, also
makes the regional and regional economic productivity will increase as a whole.

The border area between Entikong and Sarawak has direct links. The relatively
more advanced condition of Sarawak is an attraction and influences the socio-economic
orientation of the Entikong region in particular and West Kalimantan in general. This
linkage gives a real chance to the economy of the Entikong Region. The opening of the
Entikong CBCP makes the flow of goods and services to Sarawak smoother. Production
and distribution activities develop and make trade a business activity that the community
operates in this area.

Trading activities at the Entikong Tent Market are one of the activities at the
border. Its development is intended to facilitate and accommodate the development of
micro-scale trading businesses. As an embodiment of economic activity in the scope of
sub-districts, the market represents economic activities that combine production and
distribution, although not yet fully market-oriented. The goods traded in the Tent Market

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are very diverse, including a number of agricultural commodities, agricultural and
plantation products, groceries, and food and beverages, as well as clothing and other
household needs.

Entikong District continues to experience development. Its strategic location

because it is a border area (there is a Cross-border Checkpoint Gate), has an impact on
increasingly intensive movements and continues to increase, as well as the need for space
to accommodate various activities of the population is also increasing. This can be shown
by the emergence of the built-up area along the primary arterial road, even to the south of
the Sekayam River there appears to be a fairly dense built-up area (reaching 500 meters on
the right and left of the road). The topography of Entikong Subdistrict which tends to be
bumpy causes the built area to form clusters or small clusters along the arterial road.

The built area in Entikong Subdistrict has so far been dominated by settlements that
are no longer close to the river but instead follow the main road direction. The existence of
transmigration activities is one of the activities of the population which encourages the
rapid development of the region's settlements, this is because the Entikong District is a
border area that has a large area of land available.

The development of the spatial structure of Entikong District is shown by the

development of activities and land use in the district. The land-use change that appears is
in the capital of Entikong sub-district, namely in Entikong Village and can then be
developed to the nearest villages namely Nekan and Semanget. For inns as a transit facility
Sports facilities in the area Quite dense settlements on the banks of the Sekayan River
Mixed settlement One example is the clustering / settlement cluster along arterial roads the
development of spatial structures to other regions cannot yet be carried out because there
are limiting factors namely natural topography and some definitions of the function of the
area for protected forests so that the development of community activities is currently only
centered in Entikong Village.

The role of policies that are very sensitive to economic growth at the Entikong
border is a barrier that limits growth itself. Economic growth The Entikong border region
is highly dependent on central policy and bilateral policy (without involving the center),
namely the Malindo Social and Political Forum. Thus a conducive climate is needed for

9
economic growth, including the preparation of policies that are fit to the border conditions
and their development.

According to Niebuhr and Stiller (2001), a border region has uniqueness in seeing
its market potential, marketing reach is very likely to be distorted due to policies and
regulations on the border (as shown in Figure 4.12). The Entikong condition included in
the typology of the border region1, characterizes conditions that have not yet led to the
condition of the border region with favorable economic relations and the lack of market
distortion to the bordering region (transborder region). For this reason, existing policies
should support both parties, especially Entikong with high potential connectivity with
Sarawak (indicated by the development of the tertiary sector as a priority sector:
transportation and communication, services) to develop its economy and be able to develop
itself as a center of growth.

According to Kearney (2004), differences in economic conditions (Malaysia-

Indonesia) enable the flow of resources from economically lower regions to more
advanced regions through semi-permeable membranes, namely the existing boundaries
(Figure 4.13). These conditions occur at the Entikong border, differences in existing
conditions cause Malaysia to enjoy all the benefits, because practically from all aspects
more advanced and able to provide supply for the Entikong community.

This border development strategy resulted from various analysis findings that have
been carried out previously. The focus of the strategy on developing borders in an
economic perspective is done to give meaning to the problems of economic growth that
occur in areas that have not yet demonstrated the role of the region in pushing the
surrounding area, this is reflected in the lack of infrastructure that connects between
regions and the concentration of development only at certain locations (Desa Entikong )
Which is the location of the Cross-border Checkpoint (CBCP).

CONCLUSION

This section will discuss the conclusions and recommendations about the development
strategy of the Entikong border region in spurring economic growth.

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The economic growth that occurred in Entikong has not led to the development of a border
region in relation to its economic potential. However, several important elements in the
development of a border area are already owned by Entikong. The resulting strategy
provides perspective solutions to problems that arise in the development of border areas.
More conclusions that can be described related to various discussions in the previous
section are:

1. Entikong Border Area is the initial phase in the development of a border area. This
is reflected in the typology of the border region which has the characteristics of at
least economic relations that occur, bottleneck infrastructure, development of non-
primary sectors, and a policy framework that has not been integrated. As an initial
phase of the development of the border region, the problem that arises is that
economic growth has not yet led to the development of the border region. These
findings indicate the urgency of economic development strategies based on the
economy, taking into account existing strategies in the study area.
2. A review of spatial aspects shows relatively small changes in terms of land use for
the growth of economic activity. The polarization of the population and the spatial
structure formed is more due to the condition of the topography and the
infrastructure of the built road, especially the main road leading to the border gate.
This condition requires attention, related to the role of Entikong as the National
Strategic Activity Center (NSAC) which functions as an economy while
maintaining the protection function in the border area. Efforts in spurring economic
growth must be faced with the aspect of environmental conservation with the
function of protecting the area. The principle of sustainable regional development
(social-economic environment) is very important to apply in this context.
3. Economic growth can be seen from the average rate of economic growth (5.88%),
compared to the population growth rate (1.18%). In addition, on an economic basis,
almost all sectors are basic sectors except agriculture, manufacturing, and trade.
The economic basis review shows the existence of economic growth because the
base sector can encourage the economic progress of the border region. This
potential can develop better, of course with the support of multi-sector and
conducive policies, this condition is an important initial capital for the development
of the border region which is expected to be a motor of growth for the surrounding
area.
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4. A review of economic performance shows that the electricity, gas and drinking
water sector, the transportation and communication sector, and the service sector
are sectors that are performing well. This is related to the function of the border
region with economic activities that begin to shift the role of agriculture in the
regional economy. The dynamics of the development of the border region have
implications for developing sectors, including the development of secondary and
tertiary sectors which are expected to be able to spur economic growth even better.
5. An important aspect that needs to be considered is the condition of the border
region that allows market distortions and the osmotic phenomenon in economic
flows. In market distortion, Entikong is hampered by policies that limit trade that
occurs so that market reach is not optimal. Meanwhile, if seen from the osmosis
phenomenon, Entikong with various infrastructure limitations causes the flow of
goods products to flow to Malaysia through non-formal roads, this has an impact on
the economic disparity between Entikong and Sarawak because the added value of
these products is obtained by Sarawak. Both of these phenomena (distortion and
osmosis) are indicative of the need improvement of the provision of infrastructure
and effective regulation so that the existing disparity conditions can be minimized.
6. Entikong has opportunities in the development of interstate land border areas. This
can be seen from the existence of several important elements in the development of
the border area between Entikong-Sarawak. These elements include culture,
institutional frameworks, private sector interests, infrastructure approaches and
policies. Some of these elements are important capital in underlying future steps,
especially in preparing Entikong as a center of economic activity, as well as an
international gateway that has comparative and competitive advantages so that it
can carry out its function as a national strategic area.
7. The strategy of developing the Entikong border region is related to efforts to spur
economic growth. The strategy is supportive of existing policies and includes
planning strategies in the medium and long term. These strategies include:
encouraging conducive regulations and operational areas of economic development
in the border region, compiling road maps for effective and operational spatial
planning, improvising infrastructure development that is responsive to the needs
(hard & soft infrastructure), increasing the role of leading sectors and encouraging
the sector others in growth, increasing attention to the sustainability of development

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 and the development of Human Resources, trade facilitation that is both internal
and external. Some of these strategies are expected to become directions in the
development of the Entikong border region with border characteristics whose
economic activities are the main concern.

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