KUALA LUMPUR – The Natural Resources and Environment Sustainability Ministry (NRES) has dismissed recent media reports suggesting that Malaysia handed over 5,207 hectares of land to Indonesia as compensation for three villages in the Nunukan area near the Sabah-Kalimantan border.
Its minister Datuk Seri Arthur Joseph Kurup, refuted these claims, emphasising that the settlement of the land boundary issue between Malaysia and Indonesia was reached without principles of reciprocity, compensation, or “profit and loss”, Bernama reported.
He explained that negotiations on marking and measuring the Outstanding Boundary Problem (OBP) areas were conducted amicably between the two countries, in line with international law and existing boundary agreements.
“The resolution of this issue was not based on political compromises but on scientific measurements and international legal agreements,” Kurup stated. “The finalisation of the boundary was achieved through a Memorandum of Understanding (MoU) signed on February 18, 2025, after over 45 years of transparent and comprehensive technical discussions.”
He further highlighted that the determination of the boundary line was based on precise geospatial coordinates and in compliance with the Boundary Convention of 1891 and the Boundary Agreement of 1928, rather than being driven by political considerations.
“The final demarcation of the border strengthens Malaysia’s legal position internationally and eliminates the potential for future territorial claims,” Kurup explained.
Kurup also reiterated that the decision to settle the border dispute was a strategic move to ensure Malaysia’s sovereignty is recognised both by its neighbours and the global community. This approach prioritises long-term interests over maintaining disputed areas that lack a legal foundation.
The Minister added that both countries continue to adopt a diplomatic approach, with ongoing discussions aimed at resolving any outstanding issues in the OBP areas, fostering goodwill, and preventing conflicts.
Recently, media outlets reported that three villages in Nunukan, North Kalimantan, were now part of Malaysia, and that Indonesia had gained an additional 5,207 hectares from Malaysia. However, Kurup clarified that the boundary dispute over the Pulau Sebatik area remains unresolved. – January 23, 2026