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Pre-Feasibility Study on Sarawak (Malaysia) and West Kalimantan (Indonesia) Cross-Border Value Chains
Pre-feasibility study on industry-specific activities between Sarawak and West Kalimantan in medical tourism, higher education & TVET, tourism, rubber, wood products, palm oil, fisheries, alumina and bauxite, and ship building. It offers a practical and implementable program to develop the Sarawak-West Kalimantan border area (within a broad geographic context), based on specific industry value chains. The study identifies concrete and high-impact projects that will advance implementation of an integrated border area development program for West Kalimantan. It maps the optimal configuration of Sarawak-West Kalimantan cross-border trade and investment in goods and services; and, concurrently, provides the design of a border area development plan for the two territories.
-- For Sarawak, the economic internal rate of return (EIRR) ranges from 16% to 22% for natural rubber, palm oil, medical tourism, TVET and higher education. The economic net present value (ENPV) are highest for medical tourism (nearly US$ 183 million) and palm oil (US$ 83 million). The economic benefits-cost ratios (EBCRs) range from 1.3 to 2.1.
-- For West Kalimantan’s projects, the EIRR ranges from 18% to 21% for wood products, palm oil, and natural rubber. The ENPV is highest for palm oil (US$ 250 million). The EBCRs range from 1.8 to 2.2.