Malaysia PM Anwar denies ceding over 5,000ha of land to Indonesia amid border compensation claims

KUALA LUMPUR – Prime Minister Anwar Ibrahim on Feb 4 rejected allegations that Malaysia ceded about 5,207ha of land to Indonesia as compensation for three villages near the Sabah-Kalimantan border, calling the claims “untrue” and “lies”.

Speaking during a special briefing on the Malaysia-Indonesia border issue in Parliament, he stressed that both countries remain bound by agreements dating back to 1915.

“That is why we must adhere strictly to the agreement. The disputed area, as I see on the map, has been clearly defined since the 1915 agreement in all our records,” he noted.

The controversy follows reports and political debate surrounding the resolution of several Outstanding Border Problems (OBPs) between Malaysia and Indonesia, particularly around Sebatik Island, which is divided between the two countries.

Parts of Kampung Kabulangalor, Kampung Lepaga and Kampung Tetagas in Nunukan, North Kalimantan, are now recorded as falling within Malaysian territory following joint remeasurement and redemarcation work with Indonesia, Datuk Seri Anwar said, adding that several areas remain unresolved.

He said five intertidal areas in the Sabah-North Kalimantan sector and four OBPs in the Sarawak-West Kalimantan sector are under discussion and have yet to be finalised.

Mr Anwar also chided Opposition lawmakers for their accusations, warning that it is not the time to seek political gain at the expense of Malaysia’s interests or bilateral relations.

“As with previous accusations that Malaysia ceded Ambalat, which has not yet been finalised, the Opposition alleged the land had already been handed over.

“We must refer to data and figures… Matters of national interest, including borders, must be discussed responsibly. I welcome questions from the Opposition, but I strongly reject allegations of betrayal of the country,” Mr Anwar added.

The issue gained renewed attention after Indonesia’s National Border Management Agency briefed Commission II of the Indonesian House of Representatives.

Its secretary, Police Commissioner Makhruzi Rahman, was quoted as saying that several OBPs had been resolved through a memorandum of understanding signed during the 45th Indonesia-Malaysia Joint Meeting held on Sebatik Island on Feb 18, 2025.

According to Indonesian parliamentary briefings, while parts of the three villages are now recorded to be within Malaysian territory, Indonesia has also gained approximately 5,207ha of land previously considered Malaysian.

Mr Makhruzi added that the area is earmarked for border development, including a border post and a planned free trade zone.

Indonesia has also downplayed claims of a sudden territorial loss, emphasising that the issue stems from long-running negotiations and will be resolved through field checks and inter-agency coordination.

Indonesian State Secretary Prasetyo Hadi told reporters on Jan 26 that the government is working towards a resolution.

“We will look for a solution. We will check directly in the field,” he said.

Mr Prasetyo stressed that any decisions would be made carefully and in consultation with the relevant ministries and agencies.

Officials from both countries have described the OBP framework as a longstanding technical and diplomatic process involving surveys, field verification and negotiations to clarify precise territorial lines.

North Kalimantan Border Management Agency head Ferdy Manurun Tanduklangi said the boundary settlement is a gradual process.

“The process has been carried out for years and in stages, not abruptly,” he told reporters on Jan 27.