A maritime dispute is brewing between Southeast Asia’s largest economy, Indonesia and the world’s second largest economy China. Both countries are claiming sovereignty over waters off the resource rich Natuna islands. It’s a dispute that could potentially turn into a new flashpoint in the region. China claims that it has historic rights to most parts of the waters off Natuna. Indonesia on the other hand says that the Natuna sea falls within 200 nautical miles of Indonesia’s coastline, making it part of its exclusive economic zone or EEZ.

But can Indonesia afford to set limits to China’s maritime ambition in the South China sea? And given its dependence on China for investments and trade, will it stand to gain or lose more from its maritime dispute with a global superpower?

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