The decision by Indonesia and Malaysia to jointly develop the resource-rich Ambalat sea block signals a pragmatic step towards defusing a decades-old territorial stand-off, even as legal uncertainties over sovereignty remain unresolved.
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The agreement was announced last week during Malaysian Prime Minister Anwar Ibrahim’s visit to Indonesia, where he met with Indonesian President Prabowo Subianto to discuss maritime and land border disputes, investment, and regional conflicts, among others.
Prabowo said he and Anwar had agreed to “seek mutually beneficial solutions” over Ambalat. Located east of Borneo, Ambalat is believed to hold vast oil and gas reserves.
“While we resolve the legal aspects, we will begin economic cooperation under what we call joint development,” Prabowo said in the presidential palace in Jakarta on Friday.
“Whatever potential is found in these waters, we will exploit it together fairly,” he added.
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Anwar said there was “no obstacle” for Indonesia and Malaysia to start their economic cooperation in Ambalat, including by setting up “a joint development authority” to manage the block.