Indonesia: Sea Toll Road Expected to Reduce Malaysian Products

• May 16, 2017

TEMPO.CO, Jakarta – The government of Nunukan Regency, North Kalimantan, hopes that the distribution of basic necessities via the sea toll program will reduce Malaysian products in the region.

“We hope that the distribution of staple foods through the sea toll program will reduce Malaysian products in Nunukan Regency,” Herry Ageng Santoso, head of foreign trade division at the Nunukan Regency administration, said yesterday.

According to Herry, Malaysian products have been supplied to Nunukan for decades. However, Herry believes that domestic basic necessities would be dominant in the regency upon smooth distributions.

He added that Malaysian products penetrated the market in Nunukan due to lacks of domestic product supplies to the regency. Therefore, Herry suggested that the solution to meet demands on basic necessities in the border between Indonesia and Malaysia is to import the products from Malaysia.

Herry pointed out that smooth distribution of domestic products could lower basic necessity prices. All this time, he revealed, Malaysian producers seem to have the freedom to fix prices due to lack of competitors.

“The sea toll program that supplies domestic products can at least lower Malaysian product prices,” Herry said.

Source: https://en.tempo.co/read/news/2017/05/16/056875730/Sea-Toll-Road-Expected-to-Reduce-Malaysian-Products