| Summary: | The social and economic relations between Indonesian and
Malaysian citizen who live in the border part of their state have been
existing far before they know the idea of a nation-state. The Indonesia
citizens who live along the border area, especially in Entikong, were used
to conduct cross border trade with Malaysia citizens. The Indonesian
citizens in Entikong sell their agricultural commodities to Malaysia and
buy their daily needs such as sugar, gasoline or fuel, clothes, soft drink,
salt, meat, cooking oil and some other goods that could not supplied
traders from Pontianak.
Both Indonesia and Malaysia governments considered that they
need to make an agreement to regulate and control the trade activity along
the border area. Therefore, on 24 August 1970, the Indonesia and Malaysia
governments signed an agreement called Border Trade Agreement. The
agreement regulates about the goods from Indonesia that are allowed to be
sold to Malaysia and the goods that are allowed to be bought from
Malaysia by Indonesia citizens along the border area. It also regulates the
value of goods that are allowed to be bought from Malaysia and the goods
that are allowed to be sold to Malaysia. Those who own the Cross Border
Identity Card (Kartu Identitas Lintas Batas, KILB) will not imposed a
custom duty as they conducted cross border trade activity, but the value of
goods is limited to RM 600.
As the Legal Entry Point was constructed in Entikong, the
economic activities were increasing in that area. The Indonesia citizens
who live in the Entikong asked the Indonesia governments to revise the
Border Trade Agreement by raising the cross border transaction value
from RM 600 /month to US$ 1.500/month. They argue that the BTA 1970
was not appropriate to support the economic activity and fulfill their daily
need in that area. However, the Fiscal Policy Committee as the policy
maker has not agreed yet to raise the cross border transaction value.
This thesis will discuss about the impacts of Border Trade
Agreement on the cross border trade in Entikong. The writer will discuss
the interest of group of people who require the Indonesia government to
revise the Border Trade Agreement 1970. The factors that influence the
Border Trade Agreement 1970 remains unchanged also would be
discussed in this thesis.
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