Trade Smuggling Phenomenon in Cross Border Indonesia-Malasia in Sebatik Island, North Kalimantan

Abstract

This study examines the phenomenon of informal trade smuggling in the Sebatik Island, North Kalimantan province Indonesia. One third of the economic space in Sebatik Island is occupied by the informal economy. This world-minded phenomenon replaces the economic space left by the formal economy. In the border context, there has been enormous manipulation of resources, dynamic practices that take place in the legal formal economy or the informal economy which are considered illegal, yet have guaranteed jobs for the sustainable livelihood of the community. The early finding of this study indicates that the smuggling phenomenon arose due to the availability of space and economic opportunities that could be exploited in fulfill the economic needs of community groups at the border which eventually led to local integration in the nature of kinship relations between ethnic groups and ethnic relations that transcend regional boundaries. The contribution and interest of this research will provide a clear understanding of this activity through the concept of Daily-Defined interpretation of the phenomenon that occurs at the Indonesia-Malaysia border. In addition, findings through daily mapping will have implications for the government’s understanding in formulating new cross-border trade policies related to border security, social and economic interests. This research takes descriptive qualitative approach through key informant interviews, face-to-face questionnaires and field observations using the daily meaning analysis unit. This is coupled with secondary data documentation from journals, books, published or unpublished reports.

Presenters

Budi Setiyono
Lecturer, Political and Governmental Science , Universitas Diponegoro, Jawa Tengah, Indonesia

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

Social and Community Studies

KEYWORDS

TRADE SMUGGLING; STATE BORDERS; INFORMAL ECONOMY; POVERTY