Prime Minister Datuk Seri Anwar Ibrahim on 4 February 2026 firmly denied allegations that Malaysia had surrendered territory to Indonesia along the Sabah–Kalimantan border, stressing that boundary determinations were guided strictly by long-standing international agreements rather than political bargaining or territorial trade-offs.
Speaking during a special briefing in Parliament, Anwar said ongoing negotiations with Jakarta were aimed at resolving unresolved boundary issues that dated back more than a century. He dismissed claims that Malaysia had transferred 5,207 hectares of land to Indonesia, explaining that the border alignment followed treaties signed in 1891 and 1915, as well as subsequent bilateral negotiations that began in 1977 and were concluded in phases.
According to Anwar, the most recent round of discussions commenced in 2019 and reached technical completion between 2022 and 2023, although formal ratification has yet to take place. He noted that Malaysia was keen to expedite the finalisation process to preserve strong diplomatic relations with Indonesia while remaining consistent with international conventions governing territorial boundaries.
The prime minister emphasised that the Sabah state government and all relevant local authorities were fully involved throughout the negotiation process. Any agreement reached, he said, reflected Sabah’s position before being finalised at the federal level and discussed with Indonesia.
The controversy emerged following a report by an Indonesian media outlet claiming that Sabah had agreed to relinquish 5,207 hectares of land in exchange for three villages—Kampung Kabulangalor, Kampung Lepaga, and Kampung Tetagas—located near Pulau Sebatik. The report prompted opposition lawmakers to demand clarification in Parliament over concerns related to national sovereignty.
Anwar rejected the idea that border negotiations were conducted on the basis of compensation or reciprocal land exchanges. He explained that boundary determinations were instead anchored in historical treaties and internationally recognised mapping principles.
He identified Pulau Sebatik and the Sungai Sinapad–Sungai Sesai area as two long-standing Outstanding Boundary Problems. In the case of Pulau Sebatik, Malaysia gained approximately five hectares following the signing of a memorandum of understanding. Meanwhile, negotiations concerning Sungai Sinapad–Sungai Sesai resulted in Malaysia securing an additional 780 hectares.
The total disputed area at Sungai Sinapad–Sungai Sesai spans 5,987 hectares. Anwar noted that, based on historical records and administrative practice since 1915, the majority of this land had long fallen under Indonesian administration, a situation that was never formally contested by either the British colonial authorities or the Malaysian government.
As for the three villages cited in the controversy, Anwar clarified that they had always been part of Sabah under the 1915 agreement. He said minor portions of these villages naturally fell within Malaysian territory based on the finalised boundary alignment, reinforcing that no land had been ceded and that Malaysia’s territorial integrity remained intact.
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