ABSTRACT
Effective decentralization is determined mainly by local government capacity in managing local development. In the case of archipelago countries like Indonesia, local government capacity in managing national border issues such as fishery conflict between countries is vital to prevent and solve any disputes among actors between nations. In this study, we aim to explore issues of fishery conflicts between Indonesia and Malaysia in Sebatik Island as well as the capacity of Nunukan local government to solve the conflict. A single case study was used to explore and to identify the main issues of the fishery conflict and key local government capacities to manage the conflict. Observation and interviews with key informants were conducted in August 2017. The findings show three issues of fishery conflict between Indonesia and Malaysia at Sebatik: illegal fishing, fisherman robbery, and the dependence of Sebatik fisherman on Tawau (Malaysia) market. All issues are related to the low capacity of local government in terms of resources and structure capacity in managing the fishery conflicts. The findings suggest that despite the minimum authority that they have in managing fishery conflicts, local governments still need to enhance their capacity in managing fishery conflict, due to the geographical condition of the border closer to the local government in the regency, so they are more aware of the cause of the problem at the conflict site.
