THE HAGUE - The world court in The Hague ruled today that two tiny resource-rich islands in the Sulawesi Sea belong to Malaysia, ending a longstanding territorial dispute between Kuala Lumpur and Jakarta.

"The court, by 16 votes to one, finds that sovereignty over Pulau Ligitan and Pulau Sipadan belongs to Malaysia," presiding judge Gilbert Guillaume said.

Foreign Minister Syed Hamid Albar welcomed the decision, telling journalists here: "Malaysia has never doubted that the islands belong to us."

He added: "This will not affect our relations with Indonesia. We have shown that we can settle disputes peacefully, as neighbours."

In its ruling the International Court of Justice (ICJ) rejected claims by both countries that they had sovereignty over Ligitan and Sipadan based on treaties signed in the late 19th century by their respective colonial powers, Britain and the Netherlands.

Instead the world court said Kuala Lumpur had shown that it had asserted authority over the islands, notably in the 1930s with several environmental regulations, while Indonesia did not protest Malaysia's actions until 1969.

Assertions of authority

Both islands are said to be rich in natural resources, while Sipadan is a major tourist destination, known as one of Southeast Asia's best diving spots, once described by world-famous French diver and filmmaker Jacques Cousteau as "an untouched piece of art".

Sipadan grabbed international headlines in April 2000, when members of the Philippines' Abu Sayyaf militant group raided and kidnapped 21 Malaysians and foreigners on the island.

Guillaume, explaining the ICJ's ruling in favour of Malaysia, said Tuesday: "The court is of the opinion that both the measures taken to regulate and control the collecting of turtle eggs (in 1917) and the establishment of a bird reserve (in 1933) must be seen as regulatory and administrative assertions of authority."

The question of sovereignty over the two small islands off the coast of Malaysia's Sabah state and Indonesia's East Kalimantan province has been a minor irritant in bilateral relations since Jakarta laid claim to them in 1969.

The two countries agreed in May 1997 to refer the sovereignty row to the international court in the Netherlands after bilateral negotiations failed.

They signed an accord allowing the ICJ to resolve the dispute "in the spirit of friendly relations," adding that they would accept the court's decision as "final and binding upon them".

Rulings by the ICJ, the supreme legal body of the United Nations, cannot be appealed.

While awaiting the ruling, Malaysia has allowed five tourism companies to continue operations on the two islands but has ordered a halt to new projects. — AFP