Indonesia-Malaysia: Rising Tensions in the South China Sea - A
Special Press Summary:
Executive Summary
1. Assessment: Following several days of gunboat diplomacy over
long disputed offshore oil and gas reserves in the South China Sea,
Indonesia and Malaysia have agreed to stand down, in an effort to
ease escalating tensions. Since the crisis began mid-February, both
the government and public - mainly from Indonesia - have released
increasingly aggressive statements in favor of guarding territorial
integrity. Already riled by Kuala Lumpurs recent expulsion of
Indonesian migrant workers, Indonesians appear unaffected by
Jakartas tempering of the situation. Moreover, Malaysia has
accused the Indonesian media of unnecessarily intensifying the
issue, with some reports suggesting this as a tactic to distract
from other unpopular domestic issues such as the recent fuel price
hikes. However, despite both governments assurance for a
diplomatic solution, and Indonesias withdrawal of several warships
from the area, the initial swift military response continues to be
a cause for concern to regional stability.
2. Summary: In late night talks [Wednesday, 9 March] in Jakarta,
the foreign ministers of both nations agreed to stand down
following a military escalation which erupted after Malaysia last
month granted an oil exploration concession in disputed waters. A
joint statement issued by Indonesia's Foreign Minister Hassan
Wirayuda and his Malaysian counterpart Syer Hamid Albar said the
two sides would "take necessary steps" to ease the recent tensions.
According to the statement, the two sides would organize a
"technical team" with representatives from both sides to discuss
the problem on a regular basis beginning 22 March. Indonesian navy
spokesman Rear Admiral Malik Yusuf said Wednesday that five of its
vessels had pulled out of the disputed region but could be
redeployed again if necessary. Tensions flared on 16 February 2005
when Malaysian oil company Petronas awarded production-sharing
contract to two units of the Anglo-Dutch giant, Royal Dutch/Shell
Group, and to the local oil company, Petronas Carigali for
deepwater oil and gas exploration in the disputed area off the east
coast of Borneo Island. This latest military buildup came after a
report last Thursday that a Malaysian Navy Beechcraft had
apparently breached Indonesian airspace over the Sulawesi Seathe
fifth such incident in less than two week. Jakarta had sent seven
warships, and four F-16 Fighter Falcon fighter planes to the area.
The Royal Malaysian Navy deployed two warships as well. On Monday,
the Indonesian Navy maintained that it will not let an inch of
[Indonesias] land or a drop or [Indonesias] ocean fall into the
hands of foreigners. On Monday, [7 Mar] about 50 demonstrators
held a protest - chanting Crush Malaysia - outside the Malaysian
Embassy in Jakarta. In Makassar, South Sulawesi, protestors torched
Malaysian flags. Indonesian hackers also launched attacks on
Malaysian government websites, defacing Internet pages with defiant
slogans and Indonesian flags. In Jakarta, the Speaker of the House
of Representatives (DPR) has urged stern action on Indonesias
part, including the use of military force to solve the dispute.
Separately, a request has been made to recall Indonesias
ambassador to Kuala Lumpur. The dispute centers on overlapping
claims to waters surrounding the Sipadan and Ligitan Islands, off
the east coast of Borneo Island. After agreeing to international
arbitration, Indonesia was bitterly disappointed when the
International Court of Justice ruled in 2002 that the islands
belonged to Malaysia. According to Jakarta, the Malaysian claim is
erroneous, as it is based on a self-made and outdated 1979 map of
the area that is not recognized by the Indonesian government or
most other Southeast Asian countries
3. Prepared by: Virtual Information Center; (80
477-3661 ext. 2900 on 9 March 2005
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