Officials from the two countries have been in talks for some time to launch the initiative amid gradually improving COVID-19 conditions in the wider Southeast Asia region.

President Joko “Jokowi” Widodo hosted Malaysia’s new Prime Minister Ismail Sabri Yaakob at the Bogor Palace in West Java on Wednesday.

It was Sabri’s first meeting with Jokowi since taking office in August, following the political turmoil that forced the hand of Malaysia’s king to appoint him to replace ousted premier Muhyiddin Yassin.

In a statement issued after their meeting, Jokowi said they spoke “very openly and friendly” about various bilateral issues, specifically the protection of Indonesian migrant workers in Malaysia, economic cooperation and border negotiations, as well as regional issues, including the situation in Myanmar and the South China Sea.

The President said the neighbors had seen a significant year-on-year increase in trade this year, up to 49 percent in the January-August period.

The value of two-way trade for the entirety of 2020 reached US$15.67 billion, according to official records.

“In order to support economic recovery, we have agreed to have a travel corridor arrangement that we will gradually open one by one,” Jokowi said.

In separate remarks, Ismail Sabri said the arrangement, called a vaccinated travel lane (VTL), would eventually connect Kuala Lumpur with Jakarta and Kuala Lumpur and Bali, with other low-risk destinations to be added later.

However, the premier insisted that the travel corridor would only serve certain groups beginning early next year, while tourists would still need to undergo quarantine in accordance with prevailing regulations.

“It will give priority to those who have been fully vaccinated, for the category of travelers for official, business, medical and humanitarian purposes,” Ismail Sabri said in a statement issued on Wednesday.

“Reopening borders in a safe manner is important in balancing between the need to open up and redevelop the economy and maintain aspects of public health security.”

Confirming the specifics of the deal, the Indonesian Foreign Ministry's director for Southeast Asia, Mirza Nurhidayat, said the arrangement would prioritize essential business travel, while regular travelers must still follow the latest national COVID-19 task force regulations.

Last year, Indonesia already set up a number of essential business travel arrangements with countries like the United Arab Emirates, China, South Korea and Singapore.

Unlike last year, however, the forthcoming arrangement will also involve joint recognition of COVID-19 vaccination certificates and the results of polymerase chain reaction (PCR) screening tests issued by the respective countries.

After a surprising recovery from the widespread transmission of the Delta variant of the coronavirus, Indonesia is now keen to fast-track its economic recovery, including by facilitating cross-border travel.

Earlier this week, Malaysia announced it was opening a VTL with Singapore that would link Changi Airport and Kuala Lumpur International Airport, to be opened in late November. Indonesia, Thailand, Brunei and the Philippines have also been planning to set up similar schemes with the two countries and among each other.

As neighbors that share land and sea boundaries and whose populations frequently move across the border, officials on both sides have set their sights on a more coordinated approach to the pandemic response.

During the meeting, Jokowi once again reiterated the government's longstanding concerns over the protection of Indonesia’s migrant workers. The President repeated previous appeals to conclude an extension of a now-expired memorandum of understanding (MoU) on the placement and protection of Indonesian domestic workers in Malaysia.

Furthermore, Jokowi said Indonesia wanted Malaysia to give its permission to establish community learning centers for Indonesian children residing in the Malay peninsula, in accordance with the right to education.

Indonesia has already opened dozens of community learning centers in Malaysia’s Sabah and Sarawak regions, allowing the children of Indonesian migrants working in Malaysia’s plantations access to basic education.

In response, Ismail Sabri said his government was working to guarantee the welfare of Indonesian workers, such as ensuring their housing and accommodation and providing a platform to report the late payment of salaries through the Malaysian human resources ministry.

“The President and I took note of the progress of the process to finalize the MoU on the recruitment and placement of Indonesian domestic workers in Malaysia between the Ministry of Human Resources and the Ministry of Manpower and I have assured the President that we will expedite the signing of the MoU,” he said.

The Malaysian leader also requested that Jokowi allow Malaysian businesses to be more involved in his ambitious plan to develop Kalimantan, including in the establishment of the new capital city.

“Malaysia believes Indonesia’s plan to relocate its capital from Jakarta to East Kalimantan is the right decision, just like what Malaysia did 25 years ago [...] Malaysia is ready to share its experience, and Malaysian companies are ready to participate in this megaproject,” he said.

Additionally, the leaders discussed progress on land and maritime border negotiations and cultural cooperation.

PM Ismail Sabri is headed to Bandung, West Java, to visit a defense industry facility on the last day of his three-day visit.