LSN News › Vietnam

World · Vietnam Bureau

Indonesia pushes ahead with Borneo transport corridor linking Malaysia, Brunei

Indonesia is accelerating development of cross-border infrastructure and legal frameworks to establish a major transport corridor connecting the three nations on the island of Borneo, leveraging ASEAN's customs transit system to streamline regional freight movement.

LSN Vietnam · 25 September 2026

Indonesia pushes ahead with Borneo transport corridor linking Malaysia, Brunei

Indonesia is advancing preparations for the Kalimantan Corridor, a strategic transport initiative designed to enhance logistics connectivity across Borneo among Indonesia, Malaysia, and Brunei. The project represents a significant step toward deepening regional trade integration in Southeast Asia's second-largest island.

The Indonesian government is simultaneously preparing infrastructure development and finalizing the necessary legal frameworks and operational procedures required for the corridor's implementation. The initiative operates under the ASEAN Customs Transit System (ACTS), a multilateral agreement that simplifies cross-border freight movement by streamlining customs processes and reducing bureaucratic delays.

By establishing the Kalimantan Corridor, the three nations aim to create a seamless transport route that reduces transit times and logistics costs for goods moving between their territories. The corridor is expected to facilitate increased trade volumes and strengthen economic ties among the participating countries while boosting regional competitiveness in broader Southeast Asian supply chains.

The development underscores Indonesia's commitment to implementing ASEAN connectivity initiatives that support the bloc's economic integration objectives. As infrastructure and regulatory preparations progress, the corridor is positioned to become a key conduit for intra-Borneo commerce in the coming years.