Kuala Lumpur — Prime Minister Anwar Ibrahim confronted parliament on February 4 to deny territorial concessions to Indonesia, dismissing claims that Malaysia would surrender 5,207 hectares as "a lie."
The dispute centers on boundary demarcation along the 2,060-kilometer land border the two nations share on Borneo, where colonial-era conventions meet modern sovereignty assertions in a test of ASEAN's consensus-building ethos.
The Contested Territory
Indonesian officials in Nunukan regency, North Kalimantan, claimed that portions of three villages — Kabungolor, Lipaga, and Tetagas — would become Malaysian territory. In exchange, Jakarta would allegedly receive 5,207 hectares "in compensation" for developing border posts and a free-trade zone.
Anwar rejected this framing entirely. "The border is set according to conventions and agreements that have been formally established," he told lawmakers, citing three colonial agreements: the British-Dutch Convention of 1891, a 1915 boundary agreement covering Sabah, and the 1928 convention relating to Sarawak.
There is no "compensation logic," the prime minister insisted, only technical resolution of "outstanding boundary problems" — areas along rivers where shifting watercourses have created ambiguity.
The Numbers Behind the Diplomacy
Nine "outstanding boundary problems" remain unresolved: five sites along the Sabah-North Kalimantan border and four in Sarawak-West Kalimantan. Upon finalization, Malaysia would gain 780 hectares in the Sinapad-Sesai sector, while 5,987 hectares in contested zones would remain under Indonesian administration.
These are not trivial adjustments. The disputed zones affect fishing rights, resource extraction, and cross-border trade corridors worth billions in annual commerce. The Nunukan area alone serves as a critical gateway for Indonesian workers traveling to Sabah's palm oil plantations and Malaysian traders accessing Kalimantan's timber markets.
ASEAN Consensus Under Strain
The flare-up highlights a paradox at the heart of ASEAN diplomacy. Malaysia and Indonesia are founding members of the bloc, share Malay cultural heritage, and routinely coordinate on South China Sea strategy. Yet even these consensus-driven neighbors struggle when colonial cartography collides with national pride.
Anwar's language was carefully calibrated. He emphasized legal frameworks while avoiding inflammatory rhetoric — a stark contrast to the more assertive postures Jakarta and Kuala Lumpur adopt when confronting extra-regional powers.
The stakes extend beyond land. As ASEAN attempts to negotiate a Code of Conduct in the South China Sea and position itself in U.S.-China competition, intra-bloc territorial disputes undermine the region's ability to speak with one voice.
Ten countries, 700 million people, one region — and even the closest neighbors can't agree where one ends and the other begins.
