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.