Agustinus Da Costa, Kate Lamb, and Tom Allard

SYDNEY/JAKARTA – China ordered Indonesia not to drill for oil or in any maritime territory they claim as theirs in a standoff that lasted months in the South China Sea. The incident was reported by four persons familiar with the matter.

This unprecedented demand was not reported before and raised tensions between the countries over natural resources in an area of volatile global strategic economic and political importance.

According to Muhammad Farhan (an Indonesian lawmaker who is part of parliament’s security committee), a Chinese diplomat sent a letter to Indonesia instructing it to stop drilling on a temporary offshore platform because it was being done in Chinese territory.

Farhan said that he was firm in his response, stating that we will not stop drilling as it is our sovereign rights.

The spokesperson for Indonesia’s foreign ministry stated that diplomatic communications between the states are private and cannot be shared. He did not respond further.

The foreign ministry of China, the defence ministry of China and the embassy in Jakarta, Indonesia were not available for comment immediately.

According to three others, they confirmed that the letter existed. Zwei of these people claimed that China repeatedly demanded Indonesia cease drilling.

Southeast Asia’s largest country claims the South China Sea at the Southern End is it exclusive economic zone. This was according to the United Nations Convention on the Law of the Sea. The area was renamed the North Natuna Sea by 2017.

China protested the change in name and insisted the waterway was within China’s expansive South China Sea territorial claim. China marked the border with a U-shaped, “nine-dash” line. This boundary was found not legal by the Permanent Court of Arbitration (Hague) in 2016.

Farhan stated to Reuters that the letter “was a little threatening” because it was the first time China’s diplomats tried to push their nine-dashline agenda against rights under the Law of the Sea.

China is Indonesia’s largest trade partner, and the second-largest investor. This makes it an important part of Indonesia’s goal to be a world-class economy. Farhan, two other people speaking to Reuters and Farhan said that Indonesian leaders did not speak out about this matter to prevent conflict with China or a diplomatic spat.

Farhan stated that China also protested in separate letters against August’s predominantly land-based Garuda Shield military drills, which were held during the standoff.

Since 2009, the exercises have featured 4,500 soldiers from Indonesia and America. Farhan said that this was China’s first complaint against them. Farhan stated that “in their formal letter the Chinese government was expressing concern about security stability in this area.”

TENSIONS AT SEA

Ship movement data shows that a Chinese Coast Guard vessel appeared on the scene just days after the semi-submersible Noble Clyde Boudreaux semisubmersible rig arrived at the Tuna Block, Natuna Sea, to drill two appraisal holes. Soon after, an Indonesian Coast Guard vessel joined the fleet.

According to the analysis of ship identification data and satellite images by the Asia Maritime Transparency Initiative(AMTI), a U.S.-based Center for Strategic and International Studies project, over the course of the next four month, the ships of Indonesia and China shadowed each others around the oil and gaz field.

AMTI reviewed data and photos and found that a Chinese research vessel, Haiyang Dizhi 10, reached the area in August. It spent seven weeks in slow motion in a grid pattern at the D-Alpha Block. This block is an oil-and-gas reserve located in contested waters and valued at $500 million by Indonesian government estimates.

Jeremia Hulolong, a research assistant at the IOJI, stated, “Based upon the pattern of movement and nature of the vessel it seemed like it was performing a scientific survey on the D-Alpha reserve.”

The Tuna Block drilling platform was within seven nautical miles of USS Ronald Reagan, an American aircraft carrier. AMTI reported that “This was the first instance in which a U.S. air carrier operated in such close proximity of an ongoing standoff.” in the South China Sea.

According to local fishermen and the IOJI, four Chinese warships also arrived in the region.

The U.S. Navy’s Carrier Strike Group 5/Task Force 70 spokesperson declined to reveal the distance of the carrier from the rig.

‘NEVER SURRENDER’

China has been in discussions with 10 Southeast Asian nations, including Indonesia to develop a code on conduct for South China Sea. The waterway, rich in natural resource and carrying $3.4 trillion of annual trade, is a key route. After being halted by the pandemic, the ASEAN (Association of Southeast Asian Nations) has resumed the talks.

Four sources tell Reuters that Beijing has been taking an increasingly assertive stance towards the South China Sea, causing concern in Jakarta.

According to United Nations regulations, Indonesia has not claimed any areas in the South China Sea. However, it believes that the international law clearly defines the area of its waters.

Xi Jinping, the Chinese president, has attempted to reduce tensions with Southeast Asian countries. He stated last month at a China-ASEAN summit that China will “absolutely not seek hegemony” or “even less bully the smaller” states in the region.

Farhan said to Reuters that the Indonesian government had played down tensions during the standoff. He said that the leaders of Indonesia wanted to remain as silent as possible to avoid any leaks to media. This would cause a diplomatic crisis.

It was operational until Nov. 19, when it moved to Malaysian waters. Mahfud M.D., Indonesia’s security minister. He visited the Natuna River last week. Although he claimed that his visit was not related to China, he stated in public that Indonesia will “never give up an inch of territory.”

According to Harbour Energy (the operator of Tuna Block), the drilling was done on schedule. Vietnam stopped exploring in 2017 after a confrontation similar to that with China. Harbour Energy expects to release an update on drilling results by December 9.