THE HAGUE - The World Court in The Hague announced yesterday that it will issue a ruling on Dec 17 on a territorial dispute between Indonesia and Malaysia over two resource-rich islands in the Sulawesi sea.

This is the first Southeast Asian territorial dispute to go to the ICJ, the supreme legal body of the United Nations.

Pulau Ligitan and Pulau Sipidan, small islands off Sabah that are known as a diver's paradise, are claimed by Indonesia and Malaysia which cover their their oil and natural gas reserves.

Pulau Sipadan drew international attention in April 2000 after a band of Muslim rebels - the Abu Sayyaf gang from neighbouring Philippines - raided the island and kidnapped 21 Malaysians and foreigners.

The dispute between Jakarta and Kuala Lumpur over the isles dates back to 1969 when the two countries, unable to agree on the boundaries, decided to maintain the status quo temporarily.