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PRIME MINISTER Datuk Seri Anwar Ibrahim on Wednesday firmly rejected claims that Malaysia had handed over 5,207 hectares of land to Indonesia as compensation for three villages in Nunukan, near the Sabah–Kalimantan border, describing the allegation as untrue and misleading.
Citing his speech during a Special Parliamentary Briefing on the Malaysia–Indonesia border alignment at the Dewan Rakyat, Anwar said reports published on Jan 22, 2026 alleging that Malaysia had surrendered territory in exchange for Kampung Kabungalor, Kampung Lepaga and Kampung Tetagas were not grounded in fact or law.
“Fundamentally, Mr Speaker, the position of the government is clear and is strictly subject to the laws, treaties and conventions in force,” he said.
He stressed that Malaysia respects mutual agreements with Indonesia as a friendly nation and that all border determinations are based on established international instruments rather than political bargaining or territorial compensation.
“I wish to emphasise that the determination of borders is not based on principles of compensation, reciprocity or profit and loss as alleged. Instead, border determination between Malaysia and Indonesia is based on conventions and agreements as I have explained,” he said.
Anwar explained that the land boundary between Malaysia and Indonesia is governed by two conventions and one agreement inherited from the colonial period. For Sabah and Sarawak as a whole, the Boundary Convention of 1891 between the British and Dutch governments applies, while Sabah is additionally governed by the Boundary Agreement of 1915. For a small sector in Sarawak, the Boundary Convention of 1928 signed in The Hague also applies.
He said the current dispute centred on the Outstanding Boundary Problem involving the Sinapat River and Sesai River was resolved strictly according to the 1891 Convention and the 1915 Agreement.
Under these instruments, the determining principle is the position of the river mouths in relation to latitude 4 degrees 20 minutes north. Areas north of that latitude fall under British North Borneo, now Sabah, while areas to the south belong to the former Dutch East Indies, now Indonesia.
Joint boundary works between Malaysia and Indonesia began in 1977. Based on maps attached to the 1915 agreement, the mouths of the Sinapat and Sesai rivers were initially thought to lie south of the latitude line. However, subsequent joint measurements found that the Sinapat River in fact flows north of latitude 4 degrees 20 minutes north.
“As Malaysia sees it, all river basins that flow north of latitude 4 degrees 20 minutes north belong to Malaysia, and I have also presented the maps so that this can be clearly understood,” he said.
Anwar explained that Outstanding Boundary Problem areas were previously considered no man’s land, as they had not been conclusively determined by either country and remained under negotiation for decades.
He said Malaysia and Indonesia concluded the final measurements after 47 years of negotiations, which began in 1977 and were resolved in stages in the interest of preserving strong bilateral relations.
For Pulau Sebatik, joint investigations and re-measurements conducted between February and November 2019 established a final boundary distance of 23.842 kilometres. For the Sinapat–Sesai sector, joint surveying and demarcation carried out up to August 2022 and October 2023 established a final boundary length of 11.545 kilometres.
Anwar said that following the conclusion of negotiations, the matter was referred to the 45th Malaysia–Indonesia Joint Committee Meeting on Feb 18, 2025.
Under the agreed memorandum, Malaysia gained additional territory in both sectors. In Pulau Sebatik, Malaysia obtained 0.05 square kilometres, equivalent to five hectares, while in the Sinapat–Sesai sector, Malaysia acquired an additional 7.8 square kilometres, equivalent to 780 hectares.
He clarified that the total disputed area in the Sinapat–Sesai Outstanding Boundary Problem, amounting to 5,987 hectares, lies within Indonesian administrative territory and has been under Indonesian control since 1915.
“Although the agreement was not signed at the time, and therefore not finalised, the area has been owned and administered by the Indonesian government since 1915,” he said.
He stressed that Malaysia’s acquisition of 780 hectares represented an increase in its territory, not a loss, while the remaining 5,987 hectares rightfully remained with Indonesia.
As a result of the final demarcation, small portions of Kampung Kabungalor, Kampung Lepaga and Kampung Tetagas now fall within Sabah.
“Therefore, claims that Malaysia surrendered 5,207 hectares to Indonesia as compensation for three villages in the Nunukan area are not true and amount to deception, if not outright bad faith,” he said.
Anwar cautioned that several border issues remain unresolved, including five land boundary areas and intertidal zones in the Sabah–North Kalimantan sector, as well as four Outstanding Boundary Problem areas in the Sarawak–West Kalimantan sector, all of which are still under negotiation.
He urged all parties to exercise restraint in public statements, warning against exploiting sensitive border issues for narrow political gain.
“In negotiations such as these, there are matters that are sensitive. Statements must therefore be careful and measured. This is not the time to sacrifice Malaysia’s interests or damage good relations between two countries for short-term political advantage,” he said.
Addressing criticism from opposition lawmakers, Anwar said allegations that he had betrayed the nation were unfounded and irresponsible.
“I have heard statements that are insulting and accusations that I have betrayed the country. These are the things we must correct,” he said.
“If you do not know, then ask. If you do not know, ask questions. If you do not know, do not hurl insults.”
He also paid tribute to Malaysian officials and security personnel involved in the arduous demarcation process, saying they had ventured deep into difficult terrain to finalise boundary maps.
He concluded by urging Parliament to maintain decorum and perspective when discussing national interests.
“We must safeguard our relationship with Indonesia, which has been very good since 1974. Negotiations continue at all levels, from officers on the ground to ministers and prime ministers, and cooperation between both governments has always been strong,” he said.
“We may differ in opinion, but we must not pass judgment or offend the feelings of our friends in Indonesia who are striving to maintain close and amicable relations between our two countries.” - February 4, 2026