Understanding the Ambalat Dispute between Malaysia and Indonesia, and the Path to Resolution

By former state assemblyman Datuk James Ligunjang

Introduction

KOTA KINABALU: The Ambalat Block is a strategically significant maritime area situated in the Straits of Sulawesi, where Malaysia and Indonesia are engaged in a territorial dispute.

The core issues revolve around sovereignty, resource rights, and the legal frameworks governing maritime boundaries. This dispute has substantial implications for both nations. While diplomatic negotiations and legal processes are ongoing, their resolution may take years or even decades.

In the meantime, Indonesia and Malaysia have agreed to collaboratively develop the contested area for mutual benefit, balancing sovereignty concerns with practical cooperation.

Key Issues in the Ambalat Dispute

1. Sovereignty and Claims

• Indonesia asserts that Ambalat is part of its maritime territory.
• Malaysia, particularly the state of Sabah, claims that Ambalat falls within its maritime boundaries, asserting rights over its continental shelf and exclusive economic zone (EEZ).

1. Legal Framework

• In Malaysia, offshore resource management is primarily governed by federal law:
  • The Petroleum Development Act of 1974 empowers PETRONAS to explore and exploit oil and gas resources beyond 3 nautical miles.
  • The Territorial Sea Act of 2012 delineates Malaysia’s territorial waters, emphasizing federal jurisdiction over offshore resources.
• The dispute area presents a complex intersection of these laws and international legal principles.

1. Consultation and Federal Authority

• Although the Territorial Sea Act does not explicitly prohibit consultation with Sabah, the federal government generally holds overarching authority over offshore resources beyond 3 nautical miles.
• In disputed zones like Ambalat, this central authority can complicate local or state involvement, underscoring the need for coordinated decision-making.

Resolution and Legal Principles

1. International Law

• Principles such as sovereignty, territorial integrity, and the peaceful settlement of disputes form the basis of efforts to resolve the Ambalat issue.
• The United Nations Charter advocates for resolving territorial disputes through dialogue, negotiation, and adherence to peaceful means, discouraging unilateral actions or the use of force.

1. Dispute Resolution Mechanisms

• Legal avenues include adjudication at the International Court of Justice (ICJ) or arbitration processes focusing on historical titles, effective control, and existing treaties.
• Diplomatic dialogue and negotiation are vital to achieving a peaceful and sustainable resolution.

Next Steps and Considerations

• Strengthening legal frameworks to recognize Sabah’s rights within Malaysia’s federal structure is essential.
• Promoting bilateral dialogue between Malaysia and Indonesia can facilitate peaceful resolutions and mutual understanding.
• Clarifying jurisdictional boundaries and involving Sabah in resource management decisions could enhance cooperation and reduce tensions, potentially leading to amendments or the abolition of the TSA 2012.

Conclusion

Resolving the Ambalat dispute requires an appreciation of both international legal principles and Malaysia’s domestic governance structures. Although complex, progress is possible through establishing clear legal frameworks, maintaining respectful diplomatic engagement, and adhering to international norms. A conducive approach can pave the way toward a peaceful and sustainable resolution, contributing to regional stability and cooperation.