President Prabowo Subianto has opted for a peaceful settlement in response to Malaysia’s recent move to label the contested East Ambalat area as part of the Sulawesi Sea, emphasizing that both Indonesia and Malaysia are expected to find a constructive resolution to the ongoing territorial issue.

The former elite army commander hinted that there may be parties attempting to disrupt harmony between the two neighboring nations. "Essentially, we want a good resolution to the Ambalat Block dispute," Prabowo said on Thursday, August 7, 2025 after attending the 2025 Indonesian Convention on Science, Technology, and Industry.

Malaysian Foreign Minister Mohamad bin Hasan earlier said that referring to the area as the Sulawesi Sea aligns with Malaysia's 1979 New Map. According to him, "Ambalat Block" is a term used by the Indonesian government to refer to the disputed region. He also noted that the 2002 International Court of Justice (ICJ) ruling, which granted Malaysia sovereignty over Sipadan and Ligitan Islands, strengthens the country’s legal stance over the broader contested zone.

"The government will continue working closely with all relevant stakeholders, including the Sabah state government, to ensure Malaysia’s interests are protected," Mohamad said in a statement on Tuesday, August 5, 2025.

Geologically, the East Ambalat Block lies in the Tarakan Basin off the deep waters of North Kalimantan, around 80 kilometers east of Tarakan City. The area spans roughly 4,735 square kilometers, with a sea depth of up to 2,000 meters. It is believed to hold significant oil and gas reserves that could last for up to 30 years.

Earlier, Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, acknowledged that both countries are still in the process of evaluating how the East Ambalat oil and gas working area (WK) should be managed. The discussions, he said, are still taking place at a high diplomatic level, and he has been directly involved in the process.

Currently, Indonesia is drafting a management concept for the East Ambalat Block. Politically, both nations are laying claims to the area, which has complicated operational efforts.

The ESDM ministry previously reported that East Ambalat is operated by Pertamina Hulu Energi (PHE) East Ambalat. However, the block’s boundaries as defined by Indonesia overlap with Malaysia's Shell-operated block. Although PHE East Ambalat has held the rights since 2016, political tensions have prevented any exploration activities from taking place.

"Honestly, there is considerable oil and gas potential there. One of the topics we are discussing is how this area could be jointly managed for the benefit of both parties. Because if it remains undeveloped by either country, no one stands to gain," Bahlil said on July 30, 2025.