Financial Times: Observer: Sabre-rattling in the neutral zone: “Ever since Malaysia last year granted Shell the rights to an oil concession in a disputed part of the Sulawesi Sea off north-eastern Borneo, things have been a tad prickly between Jakarta and Kuala Lumpur.”: “…word came from the Indonesian navy yesterday that it was launching a massive exercise - codenamed Great Armada XXY - that would converge off the eastern coast of Borneo…”: Wednesday 23 November 2005

Published: November 23 2005

Ever since Malaysia last year granted Shell the rights to an oil concession in a disputed part of the Sulawesi Sea off north-eastern Borneo, things have been a tad prickly between Jakarta and Kuala Lumpur.

But with the upcoming 11th summit of Association of Southeast Asian Nations due to take place in the Malaysian capital next month, it would seem that the two neighbours might set aside their territorial dispute, if only for the sake of appearances. They did help found the group, after all.

It was confrontation between the two countries over post-colonial control of Borneo that led to the creation of the grand old Asean.

But word came from the Indonesian navy yesterday that it was launching a massive exercise - codenamed Great Armada XXY - that would converge off the eastern coast of Borneo from December 8-14. (Interesting timing: the conference is scheduled for December 12-14.)

And, yes, it would include manoeuvres in the disputed waters. A navy spokesman told the AFP news agency that the exercise could not be interpreted as a "show of force". To prove it he quoted Indonesia's navy chief as saying: "That is our own backyard, what is wrong in us conducting an exercise in our own territory?"

Stay tuned. A test of Asean's "Zone of Peace, Freedom and Neutrality" may lie ahead

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