Translating BIMP-EAGA Initiatives into Local Action

When BIMP-EAGA was formed 30 years ago, Brunei Darussalam, Indonesia, Malaysia, and the Philippines agreed on a common goal: spur growth in remote and less developed areas of the subregion. Today, increased transport and trade links have improved the quality of life in these areas, created jobs, and opened more opportunities for local economies.

Though a cooperation initiative of national governments, BIMP-EAGA counts on the active support and participation of districts, states, and provinces covered by the subregion. Leaders at the 15th BIMP-EAGA Summit on 11 May 2023 in Labuan Bajo, East Nusa Tenggara, Indonesia acknowledged efforts to revive and strengthen participation of these local jurisdictions in the subregion’s programs and initiatives.

In November 2022 during the 25th BIMP-EAGA Ministerial Meeting in Pontianak, West Kalimantan, Indonesia, BIMP-EAGA revived and institutionalized an annual forum that encourages subnational governments to mainstream the subregion’s development agenda in their policies, plans, and initiatives. The Chief Ministers, Governors, and Local Governments Forum (CMGLF) serves as a venue for discussing the common development agenda and for promoting commitment and ownership at the highest political level. The initial cooperation agenda for CMGLF focuses on economic corridor development, green cities development, and cross-border trade.

At this year’s 6th CMGLF held on 16 October in Kota Kinabalu, Malaysia, chief ministers, governors, and local government officials recognized that the forum is a key platform representing the interests, aspirations, and development priorities of state, provincial, and local governments.

The forum was chaired by Datuk Seri Panglima Joachim Gunsalam, Deputy Chief Minister II and State Minister of Housing and Local Government of Sabah, Malaysia. It was attended by Sharinah binti Haji Awang Suhaimi, Acting Chairman of Bandar Seri Begawan Municipality, Ministry of Home Affairs, Brunei Darussalam; Ir. Mohammad Rudy Salahuddin, Acting Governor, Gorontalo Province, Indonesia; and Rodrigo Giducos Director IV, Investment Promotions and Public Affairs Office, Mindanao Development Authority, Philippines.

The forum was held at the sidelines of the 27th BIMP-EAGA Ministerial Meeting in Kota Kinabalu, where ministers said they were pleased with the representation of BIMP-EAGA states, provinces, and local governments during the meeting. The ministers also urged CMGLF’s continued support and initiatives to promote trade, tourism, investment, and other cross-border activities in the subregion.

Attracting investments

Although subnational governments have limited power to undertake policy and regulatory reforms, they play a crucial role in creating a conducive business environment in their areas, where they can, for example, top up national investment incentives with local incentives. The strong support of local leadership, particularly in economic corridor development, is key in attracting investors.

Economic and industrial zones hosted by different areas in BIMP-EAGA have become ideal locations for processing and manufacturing as they offer tax and non-tax incentives. Thanks to such incentives, BIMP-EAGA saw domestic investments grow to $12.4 billion in 2023 from $9.5 billion in 2022, while foreign direct investments amounted to $19.5 billion in 2023.

BIMP-EAGA currently has three economic corridors: the West Borneo Economic Corridor, or the oil and gas corridor; the Greater Sulu-Sulawesi Seas Economic Corridor, also known as the maritime corridor; and the East Borneo Economic Corridor, which is in the development stage and includes East and North Kalimantan and Sabah and Sarawak. It will pass through Indonesia’s new capital Nusantara in East Kalimantan.

Subnational governments are poised to study plans to reconfigure and expand these economic corridors and create a fourth corridor. Results of an assessment made by the Asian Development Bank (ADB) show the need for the subregion to transition from “transport-centric” corridors to its original concept of spatial or area-based corridors to spread the benefits of development to marginalized areas and contribute to sustainable and inclusive growth. 

Spurring tourism

Tourism is another area where local leadership shone. It has bounced back from the COVID-19 pandemic, with arrivals increasing to 126.4 million in 2023 from 114.8 million in 2022.

BIMP-EAGA considers tourism a development pillar and subnational governments have, in turn, strived to improve land, sea, and air connectivity for seamless movement, not just of people, but also of goods, and to connect economic activities. This entailed improving customs, immigration, quarantine, and security systems at the local level.

Local leaders have also worked with the private sector to establish new transport links within BIMP-EAGA and to revive routes that were cancelled because of the pandemic. These include direct flights between Kota Kinabalu and Manado and between Kuching and Jakarta. There will be flights linking Kuching and Balikpapan as well as Kota Kinabalu and Bandar Seri Begawan. There are also efforts to revive the Davao–Manado air route as well as Kuching–Singkawang and Kuching/Lubok Antu–Putussibau bus routes. Last year, fastcraft or ferry services were introduced in new routes, such as between Lahad Datu Port (Tawau, Sabah) and Tanjung Silopo Port (Polewali Mandar, West Sulawesi) and between Bongao (Tawi-Tawi, Mindanao) and Tawau (Sabah).

Building green cities

Subnational governments have made some headway in establishing a network of green cities in the subregion to support BIMP-EAGA’s vision of sustainable urban development.

The BIMP-EAGA Green Cities Initiative helps build smart, green, and livable cities. It seeks to enhance city management’s capacity in integrated planning and management of urban infrastructure. It provides a framework for preparing a green city action plan, which details specific and localized plans for green development and investment. This integrated action plan is prepared by and for the city to realize its green vision.

So far, Kota Kinabalu, Kendari, and General Santos City have launched their Green City Action Plans (GCAP). The GCAP for Kuching in Malaysia is being finalized and plans are underway to develop a GCAP for Pontianak City .

These green city plans represent a cities’ prioritized, time-scaled green development and investment plan, combined with an urban management and implementation plan, a financing plan, and performance monitoring indicators.

Addressing future challenges

While BIMP-EAGA has seen growth over the years, challenges remain, which local officials recognized during their October meeting. They stressed the importance of continued cooperation and collaboration among the four countries and of addressing challenges together that hinder development in the subregion. They committed to increase engagement, noting that active involvement of local leadership will remain a critical factor to catalyze growth, trade, and investment as well as to strengthen the role of subnational governments in BIMP-EAGA. There was also a proposal to initiate a mechanism for sharing best practices and experiences.

A mid-term review last year of BIMP-EAGA’s economic and development agenda found that the role of subnational levels of government must have more prominence in delivering on the Sustainable Development Goals (SDGs). “With less than 10 years left to the deadline of the 2030 Agenda, the BIMP-EAGA program should be leveraged to redouble local action on the SDGs, whose successful and coherent implementation strongly relies on the participation, contribution, and collaboration of all government levels.” This supports the long-term vision of a resilient, inclusive, sustainable, and economically competitive BIMP-EAGA.