Indonesia and Malaysia today said they would seek a diplomatic end to a border and oil dispute even as a military-backed visit by Indonesia's president to the contested region risked stoking tensions.

As anti-Malaysian protests flared in Jakarta and fighter jets, warships and troops were deployed, Indonesia's President Susilo Bambang Yudhoyono and Malaysian Premier Abdullah Ahmad Badawi agreed to a foreign ministers' meeting.

"We want to settle this in a good manner ... It should be settled well without falling into the trap of confrontation, especially armed confrontation," Susilo said.

Claims by both countries to an area of the Sulawesi sea, near the land border between Indonesia's East Kalimantan province and Malaysia's Sabah were recently unbalanced by Kuala Lumpur's granting of oil exploration rights.

Warships from both countries have come into close contact in the area several times since Feb 16 when energy giant Shell was given a concession in the area by Malaysia's state oil company Petronas.

Both sides have accused each other's boats and airplanes of incursions into their territories.

On Sunday, Indonesia said it was beefing up its security presence in the area, sending four F-16 fighter planes and at least seven navy ships to the region, while placing troop reinforcements in nearby North Sulawesi province.

The Royal Malaysian Navy has reportedly stationed two warships in the disputed waters to monitor the situation.

Diplomatic solution

Susilo was on Monday touring East Kalimantan province and was later due to visit Sebatik, an island split between Malaysia and Indonesia that is home to military garrisons belonging to both countries.

Abdullah confirmed he and his Indonesian counterpart had decided in a telephone conversation early Monday to assign their foreign ministers to end the row.

"To prevent any undesirable incidents which may create tension in the relationship between Indonesia and Malaysia, both of us agreed for the matter to be discussed at the diplomatic level," he said, according to Bernama news agency.

"Hopefully, in this way, any problem faced will, God willing, be resolved in a cordial manner," he said, adding that ties between the two countries remained strong.

Susilo is expected to visit oil operations in East Kalimantan and temporary holding centres for returning Indonesian migrant workers who fled Malaysia as a government amnesty for illegal migrant workers expired last week.

Kuala Lumpur's action against migrants has been another source of contention between the two nations. On Monday, Malaysia urged its neighbour to accelerate efforts to repatriate the migrants.

Loud protests

As tensions have increased, anti-Malaysian sentiments have also been on the rise, with demonstrations staged in several major cities, including Jakarta and Makassar on the island of Sulawesi.

In Makassar on Monday, thousands of people held a protest outside a provincial parliament building to urge the government to take a firm line against Malaysia.

In Jakarta, some 200 members of activist group Study Forum for Democratic Actions held noisy demonstrations at a busy city centre roundabout and outside the Malaysian embassy, waving placards and yelling: "Crush Malaysia"

Indonesia and Malaysia previously disputed the ownership of two small islands east of Sebatik. But in December 2002, the International Court of Justice ruled that the islands - Ligitan and Sipadan - belong to Malaysia.