BIMP EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area) is an economic cooperation program involving four countries, namely Brunei Darussalam, Indonesia, Malaysia and the Philippines. The aim of this program is to enhance cooperation in trade, investment, tourism and infrastructure between the four countries. BIMP EAGA was first launched in 1994 with the hope of accelerating the development of areas in the eastern part of Indonesia and the southern part of the Philippines which are still underdeveloped. This program is expected to increase economic growth, create jobs, and improve people’s welfare in these areas. Some of the projects that have been implemented within the BIMP EAGA framework include port and airport development, road construction, tourism development, and human resource capacity building. The program has also facilitated the exchange of information and technology between the four countries, as well as promoting trade and investment between the regions involved.
Positive impact on the countries involved
BIMP EAGA has had a positive impact on the countries involved, especially for areas that are still underdeveloped in eastern Indonesia and the southern Philippines. This program has increased connectivity between these areas and opened up access to new markets. In addition, BIMP EAGA has also created opportunities for entrepreneurs and investors to invest in the areas involved. Even so, there are still many challenges that must be faced in implementing BIMP EAGA, such as differences in culture, language, and regulations that apply in each country. However, the four countries continue to be committed to addressing these challenges and strengthening reinforcement within the BIMP EAGA framework. In order to increase the success of this program, it is necessary to have support from the government, employers, and the community in each of the countries involved. Apart from that, good coordination and synergy between the four countries is also needed so that this program can continue to run successfully and have a positive impact on the regions involved.
Over time, BIMP EAGA has expanded cooperation in various sectors, such as renewable energy, agriculture, fisheries and health. In 2019, the four countries agreed to enhance cooperation in the tourism sector, including the development of sustainable tourism and the promotion of cross-border tourism. This is in line with BIMP EAGA’s vision to become a leading tourist destination in Southeast Asia. In terms of infrastructure development, BIMP EAGA continues to promote the construction of highways, ports and airports that can facilitate trade and investment between the regions involved. In 2017, Indonesia and the Philippines signed a cooperation agreement on the construction of a transnational highway connecting South Sulawesi and Mindanao. This is expected to improve connectivity between the two regions and open access to new markets.
Strengthened cooperation in the health sector
In addition, BIMP EAGA has also strengthened cooperation in the health sector, especially in dealing with the COVID-19 pandemic. In 2020, the four countries agreed to increase cooperation in handling the COVID-19 pandemic, including exchanging information and technology, developing vaccines, and promoting safe tourism in the midst of a pandemic. In promoting trade between the regions involved, BIMP EAGA has also facilitated various trade fairs and business forums. In 2019, the Philippines hosted the BIMP EAGA Business and Investment Forum which was attended by entrepreneurs and investors from the four countries. The forum discussed investment opportunities and business cooperation in the BIMP EAGA region. Overall, BIMP EAGA has had a positive impact on the four countries involved, especially for the underdeveloped regions in eastern Indonesia and southern Philippines. This program has increased connectivity between these areas and opened up access to new markets. In addition, BIMP EAGA has also created opportunities for entrepreneurs and investors to invest in the areas involved.
In facing the existing challenges, BIMP EAGA continues to be committed to increasing cooperation between the four countries and strengthening the synergies between them. This is expected to accelerate the development of the areas involved and improve the welfare of the people in these areas.
Main Priority
The main priority of this investment cooperation is infrastructure projects that can connect production and supply chains so as to provide opportunities for small and medium enterprises to develop. Where the infrastructure projects being implemented have adopted clean and green technology.
It is intended that the implemented infrastructure projects not only produce balanced economic growth, but are also environmentally friendly and socially inclusive. Because the focus of the BIMP-EAGA agenda is to spur development in remote and less developed areas in the four participating Southeast Asian countries.
With the existence of infrastructure projects, it is hoped that it will be able to overcome existing infrastructure gaps in remote and less developed areas, thereby addressing the basic problems of growth areas, such as lack of adequate transportation, electricity and ICT infrastructure, to pave the way for investment and private sector activities.
One of the transportation infrastructure projects offered by Indonesia to the BIMP-EAGA country is the Makassar-Parepare Railway Project. Where the rail project is a means of transportation that aims to increase the flow of goods and passenger traffic in South Sulawesi. In addition, the railroad line will also connect the ports in Parepare and Makassar.
The construction of the Makassar-Parepare railway line is the first railroad project in Sulawesi, so it is expected to increase economic growth in South Sulawesi and national connectivity. Thus, it can be said that BIMP-EAGA is a form of inter-regional economic cooperation in four geographically adjacent countries.
Where the focus of the economic cooperation of the four participating countries is investment in infrastructure projects that aim to complement each other and promote sustainable and socially inclusive economic growth.
