Indonesia, Malaysia Reach Deal on Joint Management of Ambalat Block

TEMPO.CO, Jakarta - Indonesia and Malaysia have reached an agreement to resolve their long-standing border dispute and jointly manage the Ambalat Block.

The announcement came after a bilateral meeting between Indonesian President Prabowo Subianto and Malaysian Prime Minister Anwar Ibrahim at the Presidential Palace in Jakarta on Friday, June 27, 2025.

President Prabowo said both countries had reached a consensus to move forward on the matter, including cooperation in the Ambalat region. "While the legal resolution is still in process, we have agreed to begin economic collaboration through a joint development framework," Prabowo stated during the joint press briefing.

He also underscored the commitment to sharing natural resources found in the disputed maritime area. "Whatever resources are discovered at sea, we will manage and utilize them together," he said.

The Ambalat dispute centers on overlapping claims between Indonesia and Malaysia over a block in the Sulawesi Sea believed to hold significant oil and gas reserves. The area lies near the maritime boundary between Indonesia's North Kalimantan province and Malaysia's Sabah state.

Indonesia asserts that the Ambalat region has been part of its sovereign territory since 1980, citing the Djuanda Declaration of 1957 as the legal basis. Malaysia, however, recently reclassified the area under the designations ND6 and ND7 in its own maritime zoning.

Malaysia’s claim draws support from the International Court of Justice’s 2002 ruling that awarded the nearby Sipadan and Ligitan islands to Malaysia. These islands had previously been disputed by both nations.

Relying on the ICJ verdict and a 1979 map, Malaysia argues that the Ambalat Block lies within its maritime boundary. However, the 1979 map has sparked regional backlash.

Several ASEAN countries, including the Philippines, Singapore, and Brunei, have strongly objected to the map for overlapping with their own claimed territories. China has also raised concerns. Malaysia’s position is based on the continental shelf extending toward Karang Unarang Island.

Arif A. Kuswardono, Yophiandi, and Agus Supriyanto contributed to this article.

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