Four people familiar with the matter told Reuters that China ordered Indonesia to stop drilling for oil and natural gas in maritime territory that both countries claimed earlier this year.
Natural resources were in high demand between the two countries, which has never been reported before, in a volatile part of the world of global strategic and economic importance.
According to Muhammad Farhan, a lawmaker on the national security committee of Indonesian parliament, a letter from Chinese diplomats to Indonesia’s foreign ministry stated the drilling was taking place in Chinese territory, which prompted Indonesia to halt it.
A key part of Indonesia’s ambition to become a top-tier economy is its trade relationship with China, which is Indonesia’s biggest partner and its second largest source of investment. According to Farhan and two other people who spoke with Reuters, Indonesian leaders kept quiet about the matter in order to avoid conflict or a diplomatic spat with China.
