Deputy Prime Minister Najib Abdul Razak today urged the naval forces of Malaysia and Indonesia to exercise restraint in order to avoid conflict.

He said the presence of the naval forces of in the overlapping border area in the Sulawesi Sea should not result in any form of provocative action that can lead to conflict.

Any untoward incident, he added, could be averted if the two sides maintained restraint and adhered to the rules of engagement.

"Although (the naval forces of) both sides are there, we hope that there will not be any action of a provocative nature that can escalate the situation into something that can undermine the relations between Malaysia and Indonesia," he was quoted as saying in Bernama.

The agreement reached between the top leaders of both countries to resolve the overlapping maritime border issue through negotiations should be respected, he stressed.

Najib, who is also defence minister, was commenting on the incident in the disputed Sulawesi Sea area two days ago where a Royal Malaysian Navy vessel KD Rencong and an Indonesian navy vessel KRI Tedung Naga brushed against each other.

Oil concessions

According to a report in Indonesia's Kompas newspaper, the two ships brushed against each other at least three times on Friday, damaging the port side of the Indonesian ship and the bows of the Malaysian vessel.

The Eastern Fleet Taskforce Commander, First Admiral Suparno, told Kompas the Indonesian vessel had warned the Malaysian ship against approaching the lighthouse being built by Indonesia on Unarang reef.

Tensions between the two country erupted after Malaysia's state-owned oil giant Petronas awarded oil concessions to Shell in the disputed area.

The Indonesian government objected, claiming that the area did not belong to Malaysia.

As leaders from both countries vowed to settle the matter diplomatically, there were widespread protests in Indonesia over the matter which also saw the torching of Malaysian flags.

Last month officials from both sides began negotiations to settle the dispute. They are to meet again in May.

Show restraint

Meanwhile AFP reports that the two countries have agreed to prevent a repeat of last week's incident warships incident.

Indonesian Defence Minister Yuwono Sudarsono said after talks with President Susilo Bambang Yudhoyono and the head of the country's intelligence agency, that both sides needed to show restraint to prevent an escalation of tensions.

"The president only said that there is already an agreement with (Malaysian) Prime Minister (Abdullah) Badawi that what is important is that it should not be repeated again and that no war of words at the diplomatic level breaks out.

"What is important is that both sides show restraint," he said.

He also said that according to reports, there were now fewer Malaysian military ships in the disputed area off the coast of Borneo island where Indonesian and Malaysian navy vessels brushed sides several times on Friday.

Indonesia is currently building a lighthouse in the area, where warships from both countries have come into close contact several times since Feb 16 when Malaysia granted the oil concession to Shell.