The Ambalat Block dispute between Indonesia and Malaysia is a prolonged
maritime conflict, triggered by differences in interpretation of maritime boundaries
and overlapping claims to areas rich in natural resources. The resolution of this
dispute is urgent for the economic, political, and sovereign interests of both
countries, as well as the regional stability of Southeast Asia and the international
community. Legal uncertainty hampers oil and gas investment, harms the economy,
and has the potential to trigger an escalation of military conflict. This study uses a
normative method by examining legal and academic materials, such as UNCLOS
1982 and ICJ decisions, as well as related journals and scientific works. Qualitative
data analysis was carried out using a deductive approach. In international law,
Indonesia has a strong position based on the principle of an archipelagic state, the
Djuanda Declaration of 1957, and evidence of active control through exploration
concessions. Various peaceful resolution mechanisms can be taken, including
negotiation, mediation, conciliation, arbitration, and judicial settlement through
the ICJ or ITLOS. Although ASEAN has the potential to play a role, the principle
of non-intervention is often a challenge. Bilateral negotiations have not reached a
final agreement due to differences in interests and legal interpretations. Therefore,
mediation and conciliation by a neutral third party, as well as international
arbitration, need to be explored to the fullest. If diplomatic channels fail,
international judicial settlement through ITLOS or ICJ is highly recommended for
binding legal certainty. Settlement of the dispute will strengthen bilateral relations,
open up opportunities for economic cooperation, and set a positive precedent for
other maritime disputes.