Malaysia Rejects Reports of Ceding 5,000 Hectares to Indonesia

Malaysia has rejected claims that it handed over more than 5,000 hectares of territory to Indonesia as “compensation” in a border issue, with Prime Minister Anwar Ibrahim calling the reports false and misleading.

Anwar Ibrahim. Photo: Instagram/malaysiapmo

KUALA LUMPUR— The issue concerns a stretch of the border between Sabah and Indonesia’s North Kalimantan province. Reports had alleged that Kuala Lumpur ceded land to settle jurisdiction over three villages in Indonesia’s Nunukan district.

“The claim that Malaysia handed over 5,207 hectares as compensation for three villages in Nunukan is untrue. It is misinformation, even if not made with malicious intent,” Anwar told Parliament on Wednesday.

Speaking in the Dewan Rakyat, Anwar said the matter was not a land swap, but the result of technical demarcation based on colonial-era treaties between the British and Dutch.

He cited the 1891 Boundary Convention, the 1915 Boundary Agreement and the 1928 Hague Convention as the legal basis of the border.

The areas along the Sinapat and Sesai rivers are classified as “Outstanding Boundary Problems” (OBPs), zones whose status had never been formally settled. Efforts to resolve them began in 1977 through joint verification.

“The status of these boundaries had never been finalized. The 1891 and 1915 treaties set the border at 4°20’ North, based on the river mouths,” he said.

Recent joint surveys found differences between historical maps and current geographical features.

Under the latest survey, Malaysia gained a net 780 hectares in the sector, while 5,987 hectares remained under Indonesian administration — a situation that has existed since 1915.

Anwar also confirmed that small portions of three villages — Kampung Kabungalor, Kampung Lepaga and Kampung Tetagas — now fall within Malaysian territory following the realignment.

“This is border standardization under international law, not a land transfer,” he said.

While the Sabah–North Kalimantan segment is largely resolved, Anwar said negotiations are ongoing in other sectors, including tidal areas in Sabah and four zones along the Sarawak–West Kalimantan border.

Any agreement, he added, would still require approval from state legislatures and the Conference of Rulers.

Anwar urged politicians not to politicize the issue, saying Malaysia’s relations with Jakarta remain “cordial and strong.”

Earlier this week, Malaysia’s Ministry of Natural Resources and Environmental Sustainability also denied inaccurate reports circulating in Indonesian media about the alleged land transfer.