Forging Maritime Cross-Border Connectivity in the South China Sea: A Case Study of Indonesia-Malaysia Initiatives

Abstract

This paper assesses the opportunities for improving cross-border trade and human mobility at the maritime border between Indonesia and Malaysia in the South China Sea, focusing on Serasan (Natuna, Riau Islands) and Sematan (Sarawak). Currently, there is no formal connectivity between Serasan and Sematan. Cross-border activities are largely informal, centred around trade and human mobility, which increases the risk of smuggling and human trafficking. Due to the limited population and economic activity in both maritime towns, there is a lack of detailed secondary information available and published. To address this gap, a SWOT analysis has been conducted. Thereby, this
study employed a qualitative and longitudinal approach to examine and assess the situation in Serasan and Sematan as a case study. The observations and findings were derived from the analysis and interpretation of data gathered from interviews with authorities and other reliable sources. The results show that geographical proximity and longstanding traditional economic relations through informal activities between the people of these regions provide a strong foundation for connectivity. However, this potential is hindered by significant weaknesses, including inadequate infrastructure development and a lack of alignment in priorities between the Indonesian and Malaysian governments. On the positive side, there are substantial opportunities in subregional cooperation and the growing sector of medical tourism. Nevertheless, illegal cross-border activities pose a serious threat to the stability and security of the region. These findings highlight the necessity for active involvement from various stakeholders and reciprocal efforts from both sides to achieve mutually beneficial outcomes. It is clear that maritime cross-border connectivity has unique features that differ from land borders, requiring a customized and context-specific approach.