There has been more than 20 years continuing tension arisen from the sovereign disputes between Indonesia and Malaysia over Pulau Ligitan and Pulau Sipadan which are offshore islands close to Sabah. On 7 Oct. in 1996, it was agreed by Mahathir Mohamad, Prime Minister of Malaysia, and Suharto, President of Indonesia at the time, to submit the dispute to the International Court of Justice by 31 May 1997 Special Agreement concluded between two States. In compliance with Article 36, paragraph 1 of the Statute of the International Court of Justice, the application was accepted by the Court and through thorough adjudication on the facts and applicable law, the judgment was decided on 17 Dec. in 2002. The article is aimed at discussing the claims and arguments made by both States from the perspective of international law and analyzing the legal effect of the succession, map and the effective administration generated from the sovereign dispute.