Informal cross-border trade Sarawak (Malaysia)-Kalimantan (Indonesia): A catalyst for border community's development

Abstract

Cross-border entrepreneurship activity plays an important role in the community economic development programs. The emergence of business groups and trade activities will generate employment, create wealth, contribute to tax revenue and stimulate the construction of infrastructures such as transportation. Indirectly, this will improve the standard of living in the border communities. The cross-border trade activities between Sarawak (Malaysia)-Kalimantan (Indonesia) continued to grow significantly. Although there is no formal cross-border route and Checkpoint of Immigration and Quarantine (CIQ) exists, Serikin as a small border town has developed as a Weekend Market focuses on informal trade. Indonesian traders and Malaysian consumers gathered on weekends to carry out transactions and this triggers local development. This article discusses the cross-border informal trade activities by focusing on the business participation factors and reasons for location selection, especially among Indonesian traders and spillover effects on the local communities.