Dispute Resolution through Third Party Mediation: Malaysia and Indonesia

Abstract

Abstract: Since independence, Malaysia has been involved in territorial disputes and overlapping maritime claims with almost all its neighbours. Some of these disputes were resolved through bilateral and multilateral treaties. However, Malaysia and Indonesia settled the dispute over Sipadan-Ligitan islands by referring the issue to the International Court of Justice (ICJ). This high sense of civility shown by the two countries need to be analysed and appreciated. Documentary analysis shows that the consideration of the geopolitical conditions, the state of bilateral relations the disputing countries were enjoying, security problems, the lack of progress in settling disputes through the bilateral efforts and the weaknesses inherent in ASEAN’s dispute settlement mechanism made the two parties to refer their dispute to the ICJ rather than to the ASEAN High Council (AHC). The ICJ’s decision, delivered in 2002, was accepted by the two parties as stipulated in the referral agreement.