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The Administration of Small-Scale Economies in the Cross- Border Trade in Southeast Asia

Hadi Suratman, FX. Adji Samekto and Nanik Trihastuti

International Journal of Economics & Business Administration (IJEBA), 2020, vol. VIII, issue 2, 210-218

Abstract: Purpose: This research aims to reveal that the servitude for economic interest in cross border trade zone can be applied in Southeast Asian countries. This trade cooperation includes the right to carry out certain actions in a country's territory as a place of trade for their foreign citizens. Approach/Methodology/Design: This study was conducted by using the field research and analyzed with descriptive analysis regarding the establishment of inter-state trade zones in the border regions of Malaysia and Indonesia. Findings: The results showed that managing the border region it is required to be emphasized by using servitude for economic interest to establish special trade zone for the creation of social justice in the border region. The establishment of a Special Area of Cross Border Trade, as that in Serikin market in Serawak, Malaysia, can be administratively used an alternative in managing the socio-economic border relations between Indonesia and Malaysia. There are several issues that must be examined as the implications of the establishment of border trade zones. Practical Implications: It is necessary to make an agreement on a special cross-border trade area to complement BCA and the BTA, in form of the Border Area Agreement (BAA). Originality/value: The trade area in the Serawak border is part of the acculturation of border communities, which requires special consideration in terms of management, legal rights and national jurisdiction. In addition, this kind of trade area is not formed by the Border Cross Agreement (BCA) and the Border Trade Agreement (BTA).

Keywords: Servitude; sovereign rights; special trade zone; cross-border trade; Indonesia-Malaysia. (search for similar items in EconPapers)
JEL-codes: F18 (search for similar items in EconPapers)
Date: 2020
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Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:2:p:210-218