IndonesiaMalaysia

Indonesia–Malaysia describes the bilateral relationship between Indonesia and Malaysia, two neighboring Southeast Asian states with deep historical and cultural ties in the Malay world. The pairing encompasses diplomacy, trade, security cooperation, and people-to-people links across a shared maritime region and overlapping diasporas.

Geographically, Indonesia is the world’s largest archipelagic country, with thousands of islands, while Malaysia comprises Peninsular Malaysia and East Malaysia on the island of Borneo. They maintain maritime borders in the Malacca Strait and share land borders on the Indonesian side of Borneo with Malaysian states Sabah and Sarawak.

Historically connected through shared Malay culture and language, both countries emerged from colonial rule in the mid-20th century—Indonesia in the 1940s and Malaysia in 1957—with later evolution through regional developments in the 1960s. The Malay language variants spoken in both nations are mutually intelligible, and Islam is a major religious influence.

Economically, bilateral ties are substantial, with trade in commodities such as palm oil and natural resources, and manufacturing, electronics, and services constituting major exchanges. Malaysia is a significant investor in Indonesia, and Indonesian workers and students contribute to cross-border mobility. Both are active members of ASEAN and participate in broader regional trade arrangements.

Cooperation covers security, maritime safety, fisheries, and border management, alongside cultural and educational exchanges. While overall pragmatic and cooperative, the relationship occasionally involves disputes over fishing rights, navigation, or boundary issues, which are addressed through diplomatic channels and multilateral fora.