Malaysia Denies Giving 5,207 Acres to Indonesia 'Barter' 3 Villages in Nunukan

JAKARTA - The Malaysian government has expressed its commitment to sovereignty and prosperity with Indonesia, following reports in various media related to the borders of the two countries in Sabah-Kalimantan.

The Malaysian government has confirmed that media reports stating that 'Malaysia has given 5,207 hectares of land to Indonesia as compensation for the entry of three villages in the Nunukan area as part of Malaysia, near the Sabah-Kalimantan border', are not true or not appropriate.

Minister of Natural Resources and Environmental Sustainability (NRES) Dato' Sri Arthur Joseph Kurup stated that negotiations regarding marking and measurement in the Outstanding Boundary Problem (OBP) area were carried out harmoniously between the two countries, and were not based on the principle of reciprocity, compensation, or profit-loss calculation.

The finalization of this land border measurement was carried out through the signing of a Memorandum of Understanding (MoU) between the two countries on February 18, 2025, after going through a comprehensive and transparent technical negotiation process for more than 45 years.

He conveyed the commitment of Malaysia and Indonesia to accelerate the resolution of land border issues in the Sabah-North Kalimantan (Kaltara) sector was agreed upon during the state visit of the former President of the Republic of Indonesia, Joko Widodo, to Malaysia on June 8, 2023.

"The negotiation process also involves the active participation of representatives of the State Government of Sabah as part of the Malaysian delegation," said Arthur.

According to him, based on the agreement between the two countries, a scientific measurement has been carried out based on previously signed agreements to determine a clear border line.

The decision was reached through a long technical process involving experts from the Department of Surveying and Mapping Malaysia (JUPEM) and security agencies.

"Every adjustment is made based on international law, namely the Boundary Convention 1891, the Boundary Agreement 1915, and the Boundary Convention 1928, as well as accurate geospatial coordinates, and not based on political concessions," he explained.

Malaysia emphasizes that the long-term benefits for national sovereignty are considered more strategic for Malaysia, by having borders that are fully recognized by neighboring countries and the international community.

The recognition is considered much more significant than maintaining a disputed area that has no legal validity.

He said the final determination of the border would strengthen the country's legal position at the international level and close the door to larger territorial claims in the future.

According to him, the two countries have also put forward a diplomatic approach through continuous negotiations to resolve various issues and disputes in the OBP region, based on the spirit of friendship and solidarity, as well as ensuring harmony and preventing conflicts in the field.

Previously, the National Border Management Agency (BNPP) in a working meeting with Commission II of the DPR conveyed that there was an Outstanding Boundary Problem (OBP) that had been agreed between Indonesia and Malaysia at the Joint Indonesia-Malaysiake-45, February last year.

Then BNPP said there were three villages in Nunukan Regency, North Kalimantan, which are currently in the Malaysian territory, namely Kabungalor Village, Lipaga Village, Tetagas Village.

However, on the other hand, it is mentioned that there is also an area of Malaysia that is part of Indonesia with an area of approximately 5,207 hectares, for the development of a free trade zone.

This is what was then clarified and explained by the Malaysian Ministry of Natural Resources and Environmental Sustainability (NRES).