Malaysian Prime Minister Najib Razak and Indonesian President Joko Widodo agreed to appoint special envoys in a bid to settle decades-long territorial disputes, plaguing bilateral relation.
Both countries claim the Sipadan and Ligitan islands in the Celebes Sea, as well as the Ambalat area of the continental shelf off the coast of Borneo, believed to be rich in oil.
The announcement comes as Indonesia continues its new policy of blowing up foreign vessels, caught illegally fishing in its waters.