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Fragmented Integration in the Singapore‐Indonesian Border Zone: Southeast Asia’s ‘Growth Triangle’ Against the Global Economy

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  • Carl Grundy‐Warr
  • Karen Peachey
  • Martin Perry

Abstract

Singapore‐Indonesian investment cooperation in the Riau islands forms the key part of an initiative in cross‐border cooperation including Indonesia, Malaysia and Singapore. Four flagship projects – Batamindo Industrial Park, Bintan Industrial Estate, Bintan Beach International Resort, and the Karimun marine and industrial complex – are a key test of the effectiveness of a development strategy that seeks to ‘fast track’ development by creating enclaves of investment, protected from the diseconomies and constraints of their surrounding environment. This paper evaluates the progress of the flagship investments and their interaction with their surrounding communities. It shows the constraints on securing enclaves of investment opportunity in the midst of poverty and high population growth. Lessons from the development experience are linked to the political processes affecting cross‐border cooperation in Southeast Asia. This discussion reveals the retention of interstate processes predicated on the continued existence of strong nation‐states, rather than trans‐state processes which permit the weakening of national sovereignty. The negotiating pitfalls and development dilemmas emerging in this political context are identified. — La coopération des investissements entre Singapour et l’Indonésie dans les îles de Riau forme la partie centrale d’une initiative de coopération trans‐frontalière qui comprend l’Indonésie, la Malaisie et Singapour. Quatre projets vedettes – Batamindo Industrial Park, Bintan Industrial Estate, Bintan Beach International Resort and the centre marin et industriel de Karimun – sont autant de tests de l’efficacité de la stratégie qui veut accélérer le développement en créant des enclaves d’investissement protégées des diséconomies et des contraintes de leur environnement proche. Cet article évalue le progrès des investissements vedettes et leur action mutuelle avec les communautés environnantes. Il démontre les difficultés que l’on rencontre pour obtenir des enclaves d’opportunités pour les investissements au coeur de la pauvreté et avec l’augmentation rapide de la population. Les le??ons tirées de cette expérience de développement sont liées aux processus politiques qui affectent la coopération trans‐frontalière en Asie du sud‐est. Cette discussion révèle une conservation des processus entre états organisés á partir de puissants états‐nations, plutôt que des processus entre états qui permettent un affaiblisement de la souveraineté nationale. Les pièges de la négociation et les problèmes de développement qui apparaissent dans ce contexte politique sont identifiés.

Suggested Citation

  • Carl Grundy‐Warr & Karen Peachey & Martin Perry, 1999. "Fragmented Integration in the Singapore‐Indonesian Border Zone: Southeast Asia’s ‘Growth Triangle’ Against the Global Economy," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 304-328, June.
  • Handle: RePEc:bla:ijurrs:v:23:y:1999:i:2:p:304-328
    DOI: 10.1111/1468-2427.00197
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    Citations

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    Cited by:

    1. Elisabetta Nadalutti, 2014. "What kind of governance does emerge in EU cross-border regions and Southeast Asia growth triangles? Italy-Slovenia and Indonesia-Malaysia-Singapore border zones revisited," Asia Europe Journal, Springer, vol. 12(4), pages 365-382, December.
    2. Tim Bunnell & Carl Grundy-Warr & James D. Sidaway & Matthew Sparke, 2011. "Geographies of Power in the Indonesia–Malaysia–Singapore Growth Triangle," Chapters, in: Ben Derudder & Michael Hoyler & Peter J. Taylor & Frank Witlox (ed.), International Handbook of Globalization and World Cities, chapter 43, Edward Elgar Publishing.
    3. N. A. Phelps, 2004. "Archetype for an archipelago? Batam as anti-model and model of industrialization in reformasi Indonesia," Progress in Development Studies, , vol. 4(3), pages 206-229, July.
    4. Alexius Pereira, 2005. "Singapore's Regionalization Strategy," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 10(3), pages 380-396.
    5. Baldacchino, Godfrey, 2006. "Innovative development strategies from Non-Sovereign Island jurisdictions? A global review of economic policy and governance practices," World Development, Elsevier, vol. 34(5), pages 852-867, May.
    6. Francis E. Hutchinson & Leo van Grunsven, 2018. "Industry dynamics in Growth Triangles: the E&E industry in SIJORI 25 years on," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(2), pages 42-63, November.
    7. Liu, Haiyue & Wang, Cangyu & Zhang, Qin & Wang, Yile, 2024. "The impact of Chinese overseas industrial parks on the productive capability of BRI host countries," China Economic Review, Elsevier, vol. 85(C).
    8. Jianfa Shen, 2014. "Urban development in Hong Kong and its regional integration with the Pearl River Delta, 1978-2009," Chapters, in: Pengfei Ni & Zheng Qiongjie (ed.), Urban Competitiveness and Innovation, chapter 11, pages 179-200, Edward Elgar Publishing.

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