2 - Reflections on Subregional Economic Cooperation in Indonesia, BIMP-EAGA

The challenge of regional imbalanced development is a significant concern for countries worldwide, including Indonesia, the 14th largest country and the fourth largest population in the world. The country consists of 38 provinces and 416 regencies. Java, home to 147 million people, dominates the economic landscape, constituting 60 percent of the nation's population. The capital city, Jakarta, also stands out with advanced economic, sociocultural, and infrastructural development, boasting a GDP 5 times higher than the national average and 14 times higher than that of impoverished regions like Nusa Tenggara in the west.

To counter the imbalances, Indonesia has pursued multilateral cooperation at the sub-regional level since the 1990s. Initiatives such as the 'Indonesia-Malaysia-Singapore Growth Triangle (1989),' 'Indonesia-Malaysia-Thailand Growth Triangle (1993),' and the 'Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area' (BIMP-EAGA, 1994) were established to foster development in specific areas, aiming to balance inter-regional disparities. Despite these efforts, significant progress has been elusive. Recent developments, including Indonesia's capital relocation to Kalimantan and collaborations with Malaysia and Brunei, have further widened the development gap, particularly in the western region.
This study delves into multilateralism in Indonesia, with a specific focus on BIMP-EAGA, aiming to comprehend the challenges and opportunities it presents. Through an in-depth analysis of the current state and future prospects of these regions, the study provides valuable insights into the effectiveness of sub-regional cooperation in Indonesia. It seeks perspectives on how Indonesia can harness its potential to address uneven development, exploring the implications of subregional cooperation.