Frontier Markets

Security in border areas can be created through prosperity. The role of markets and traders, therefore, are seen to be vital and strategic. Small-scale economic activities in Indonesia’s boundaries are flourishing at Skow, in Papua province, across from Papua New Guinea; at Mota’ain between East Nusa Tenggara (NTT) province and Timor Leste; and Sebatik town in Kalimantan, which shares a boundary with Malaysia. Yet, these commercial centers are fraught with problems, among them an ongoing consumer goods price war and a foreign currency black market. They have caught the government’s attention, which plans to include them in its overall market revitalization plan. Tempo English Edition reports from Papua, Kalimantan and NTT.

April 13, 2011

THERE are many ways of spelling Skow—Skowe, Skou, Sku—a town on the boundary between Papua province and the Republic of Papua New Guinea (PNG). It is a reflection of the many different languages spoken by the diverse local population, consisting of more than 10 different Papuan tribes and outer-island migrants.

Over recent years, Skow has grown from a sleepy border settlement to a bustling trading center, drawing visitors from PNG to not on

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