INDONESIAN POLITICAL TENSIONS SURGE IN BORDER

C O N F I D E N T I A L JAKARTA 000974 SIPDIS DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP NSC FOR E. PHU E.O. 12958: DECL: 06/08/2019 TAGS: PREL PGOV MOPS PBTS MY ID SUBJECT: INDONESIAN POLITICAL TENSIONS SURGE IN BORDER DISPUTE WITH MALAYSIA REF: JAKARTA 929 Classified By: Pol/C Joseph L. Novak, reasons 1.4(b+d). ¶1. (C) SUMMARY: Indonesian government officials and parliamentarians are gearing up for a political tussle with Malaysia over a border dispute off the coast of Borneo. Six legislators plan to visit Kuala Lumpur to complain about what they consider to be Malaysian naval incursions into disputed waters located near the Indonesian island of Ambalat. The election timeframe is heating up the rhetoric (Indonesia's presidential elections take place on July 8). The prospect of oil and gas reserves also fuel tension over the disputed region. The GOI has underscored that it wants to resolve the matter peacefully. END SUMMARY. PARLIAMENT HAS MALAYSIA IN ITS SIGHTS ¶2. (SBU) Indonesian legislators are angry over what they consider to be Malaysian naval incursions into disputed waters located off of Borneo Island. Six of them are headed off to Kuala Lumpur this week to deliver a strong protest. Parliamentarian Djoko Susilo said their mission is to convey the government's message that "Indonesian sovereignty is non-negotiable" to their Malaysian counterparts. President Yudhoyono met the Indonesian Speaker of the House on June 4 to urge legislators to support efforts to resolve the matter through bilateral diplomatic and ASEAN channels. Bilateral talks are slated to begin again next month after being stalled for over a year. ¶3. (SBU) Upcoming presidential elections are stirring up nationalist feelings among politicians and the domestic press over the issue. Presidential hopeful Megawati Sukarnoputri said Indonesia's defense budget needs to be increased to prevent "future incursions on sovereign territory." Vice President Jusuf Kalla, who is also running against President Yudhoyono, has urged Indonesia "to defend its territory." The Indonesian Navy, in the meantime, is maintaining a presence in the region. LONG A SENSITIVE ISSUE ¶4. (SBU) Some members of the government appear concerned about "losing" territory to Malaysia--again. In 2002, international courts awarded Siputan and Ligitan (two other disputed islands) to Malaysia based on long-standing Malaysian activity in the region. Chandra Motik, public maritime lawyer and advisor to the Indonesian Navy, told poloff that the government does not want that to happen again. She is working through the National Association of Fishermen, a pseudo-government professional association, to increase fishing activity in the area. This, she hopes, will establish a strong record of activity there and reinforce Indonesian claims to the territory. ¶5. (SBU) There are economic interests at stake. The region is said to contain oil and gas, although there are no proven reserves. The Indonesian government awarded exploration concessions to Chevron and Italian company Eni SpA. Both companies were working in the area when the border dispute began to heat up, but have not reported problems. GOI WANTS ISSUE SETTLED PEACEFULLY ¶6. (C) The GOI clearly wants the dispute settled peacefully. That said, given the election timeframe, the government is under some pressure to make sure that Indonesia looks strong and willing to defend its territory. Indonesian relations with Malaysia continue to be largely positive, though there are blips like this that occasionally become controversies. Our guess is that the GOI will work toward a peaceful solution while perhaps making some remarks meant to assure the Indonesian public of its nationalist credentials. NORTH