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–Malaysia border their boundary issues and demarcate their common border according to the five historical agreements, of which the two directly concern Limbang, namely the 1920 agreement establishing the Pandaruan River as the Brunei-Sarawak border to the east of Limbang, and the 1933 agreement establishing the Brunei-Sarawak border to the west of Limbang. The two countries also agreed to use the watershed principle to fill in the gaps. This essentially reaffirms the current de facto boundary without major deviation. This led Malaysia to declare that the Limbang Question has been settled with Malaysia having unequivocal ownership over Limbang. Brunei however immediately denied