RI, Vietnam to finalize sea border agreement

RI, Vietnam to finalize sea border agreement

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

After a quarter of a century Indonesia and Vietnam expect to
finalize details of their shared borders in the South China Sea
off Natuna island, which will allow Indonesia to secure some 2.8
million barrels of oil reserves.

Indonesian Minister of Foreign Affairs Hassan Wirayuda said on
Friday that President Megawati Soekarnoputri would sign the
agreement during her planned state-visit to Vietnam from June 18
to June 20.

"Technically both countries have agreed with the proposed
border, but the decision should be approved first by the
President," Hassan said after a meeting with Megawati.

Negotiations between the two countries regarding the issue
began in 1978 and has gone through 32 rounds of meetings.

Hassan called the process the longest negotiation Indonesia
had ever had with a neighboring country over borders.

"The main factor of the long dispute is the knowledge of both
sides regarding the natural resources beneath the sea, which is
suspected to contain around 2.8 billion barrels of oil reserves."

The minister said that with the dispute settled, the area
could be offered to investors for further exploration.

"We are open for cooperation to explore the border areas as
one of the sources that lie in the area should be explored
together with Vietnam," he said.

The Ministry of Energy and Natural Resources, in a statement
released Friday, said it was ready to open bids for investors
wishing to explore the area.

Three American-based mining companies used to operate in the
area, namely Marathon, Chevron and Amoseas.

The finalization of the agreement with Vietnam could serve as
a consolation after Indonesia lost Sipadan and Ligitan islands to
neighbor Malaysia late last year.

"We have learned a hard lesson and we will not let go of our
territorial rights easily in negotiations over borders in the
future," the minister said.

Currently, Indonesia is working on several border discussions
with the Philippines, Malaysia and Singapore.

Megawati will visit Vietnam as part of her planned mid-year
overseas trip, which will also take her to Bangladesh, Japan and
Mongolia. It will be her last bilateral trip this year, aside
from attending several summits in the region.