Jakarta. A Malaysian envoy recently said that his government was still negotiating with Indonesia on resolving the territorial standoff over the oil-rich Ambalat block.

This area lies over Borneo’s east coast, and its ownership has been a subject of dispute between the two neighbors.

The governments have been seeking mutually beneficial solutions, even more so after President Prabowo Subianto and Malaysian Prime Minister Anwar Ibrahim met last year.

Malaysian Embassy in Indonesia’s Chargé d'Affaires Farzamie Sarkawi confirmed on Tuesday night that the countries were still finding their way out of the dispute to this day.

“Our leaders did discuss about the block when they had their annual consultation in 2025. There are many things to discuss since then. Talks are still ongoing,” Farzamie told reporters on the sidelines of Malaysia’s National Day dinner.

According to Farzamie, another meeting is slated for next month. Asked whether the Ambalat block will be a topic of discussion, the diplomat only replied that the governments “were still working on the agenda.”

During Anwar’s Jakarta trip in June 2025, Prabowo revealed both countries wished to start jointly developing the block’s resources as they “work on the legal issues”. The statement quickly sparked speculation that it could lead to the state-owned energy firms — Indonesia’s Pertamina and Malaysia’s Petronas — teaming up.

The leaders reaffirmed their “determination to conclude the boundary issue” when they met again the following month.  

About a week later, the Malaysian Foreign Ministry clarified that the joint development remained “at the exploratory stage”, citing that both sides had not agreed on anything. Jakarta also chose to negotiate the matter, but doesn't plan on giving up its national interests.

Malaysia has also long refused to use the Indonesian term “Ambalat” and prefers to call it the Sulawesi Sea.

A government estimate quoted by the state news agency Antara showed that Ambalat could hold up to 1 billion barrels of oil reserves and over 40 trillion of cubic feet in gas potential, hence why the region becomes coveted. 

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