SIGNIFICANCE OF INFORMAL CROSS BORDER TRADE INDONESIA AND MALAYSIA FOR AGRICULTURAL COMMODITIES DEVELOPMENT IN NUNUKAN REGENCY, EAST KALIMANTAN

Abstract

The border region of Nunukan Regency with the City of Tawau, Sabah state, Malaysia has great potential to be developed as a center of agricultural production and raw material supplier. The research aims to: (a) Investigating the structure, the actors and the potency of agribusiness in the region, (b) Identification of informal cross border trade mechanisms in Nunukan-Tawau on agricultural commodities (c) Determine the strategy and policy improvements of ongoing trading system. The study shown Nunukan economic structure was still dominated by the potential of agricultural commodities, forest products, and cross-border trade activities through Sebatik Island. Lack of support infrastructure and accessibility of product flow causes agricultural commodities in the border region was inhibited. To improve the efficiency of the lucrative trade, and development of
agribusiness in the Nunukan border region, it is needed synergies between farmers, traders, businessmen and strong support from the government.