Indonesia–Malaysia confrontation become self-governing in 1959). In May 1961, the UK and Malayan governments proposed a larger federation called Malaysia, encompassing the states of Malaya, North Borneo, Sarawak, Brunei, and Singapore. Initially, Indonesia was mildly supportive of the proposed Malaysia, although the PKI (Partai Komunis Indonesia — Indonesian Communist Party) was strongly opposed to it. In Brunei, it was unclear whether the Sultan Omar Ali Saifuddien III would support Brunei joining the proposed Malaysian state because of the implied reduction of his political office, and Brunei's oil revenues ensured Brunei's financial viability were it to choose independence. Furthermore, a Brunei politician, Dr.
Brunei–Indonesia relations Indonesia established diplomatic relations with Brunei Darussalam on 1 January 1984. Brunei Darussalam was recognised by Jakarta on independence in 1984, with Indonesia dropping any claims on the Sultanate in the process. Indonesia also supported Brunei membership to ASEAN in 1984. Brunei has been a popular destination for Indonesian workers. As per 31 August 2012, there is around 58,000 Indonesian citizens are staying and working in Brunei. Bilateral trade volume in 2011 reached around US$1.1 billion, coupled with around 3,500 Indonesian products in Brunei's market. In line with Brunei's economic diversication policy, the two countries are seeking to enhance co-operation