The dispute began in 1969 and was largely resolved by the International Court of Justice (ICJ) in 2002, which opined that both of the islands belonged to Malaysia.
[1] Ligitan and Sipadan are two small islands located in the Celebes Sea off the southeastern coast of the Malaysian state of Sabah.
[6] However, a majority of people in the territory chose to become part of Malaysia in 1963 rather than the Philippines under a plebiscite organised by the United Nations.
However, the United Kingdom when it held sovereignty over Malaya, had significantly developed the islands unlike the Dutch East Indies, Indonesia's predecessor - Britain had demonstrated effective occupation.
[1][8] In addition, it is also acknowledged both of the islands were much closer to Malaysia than Indonesia as well with an earliest documentation from Malaysia over the British 1878 Agreement with the Sultanate of Sulu during which time they acquired the Sultanate area as part of the British Borneo, while the Indonesian claim is mostly based on an 1891 Boundary Treaty between Great Britain and the Netherlands.