KASTAM DIRAJA MALAYSIA, TAWAU

The Border Trade Agreement (BTA) between Malaysia and Indonesia

Indonesia and Malaysia signed the BTA in 1970. Under the agreement, both countries can only bring in RM600 (US$190) worth of goods for every border-pass holder per month.

The agreement also determines the type of commodities that can be traded.

Indonesians : can only bring in agricultural products to Malaysia, while

Malaysians : only allowed to bring in household goods other than electronics into Indonesia.

The agreement also aims to facilitate trade between people living in the border areas, such as the villagers of Nunukan in East Kalimantan who trade with villagers in Tawau in Malaysia's Sabah state.

Critics have said that with such restrictions, not much trading occurs.

In 2009, the trading of goods such as garments and food items between Tawau and Nunukan was recorded at about RM1.6 million.

Between 2004 and 2009, Malaysia invested $1.5 billion in Indonesia, the second-highest country-to-country investment among Southeast Asian states. Most of the investment focused on :

plantations
telecommunications
banking
oil and gas sectors