Indonesia, one of the neighboring state of South China Sea where conflicts are blowing upwhich involves both island and maritime claim among the neighboring sovereign states.Among the several islands, Indonesia supposes to have tensions only in Natuna Islands overthe last 18 months. Indonesian foreign policy centers on a policy of peace that will guaranteethe country’s freedom. Being a young state with lack of military strength to defend the islandlarge and small constituting in its territory, it seeks to safe guard the independence. Thus, dueto sense of insecurity, Indonesia has renamed the Northern reaches of its EEZ in South ChinaSea as Natuna Sea which believes to be a political and diplomatic step to state its sovereignty.The dispute over the South China Sea region has not only disturbed the world peace but alsothe stability and peace of the neighboring countries. Tensions over the sovereignty claimshave disturbed and exacerbated threat over the world. Indonesia seeks for a peaceful solutionby promoting dialogues. Indonesia braces it is time for the world community to focus on andbuild powerful coalitions necessary to counter the threat to peace due to dispute.Indonesia proposes following solutions on the way to sustaining peace in the world:-? As a member of ASEAN, Indonesia finds it relevant to form ASEAN-China forumwhich could act as platform for continuous discussion and negotiation on the dispute.? Indonesia believes that dispute will only be settled when bordering countries changetheir mindsets from one sovereignty, sole ownership of resource and seeking fencesto co-operation among the countries and co-operative management of resources.? Indonesia finds it proper to implement joint management of resource, fisheries,scientific research as well as preservation and protection on maritime environment.? Indonesia realizes the importance of formation of the new South China Seacommission which would comprise 15 regional and international membersconstituting all claimant states and non claimant states.? Indonesia finds it reasonable to follow one track approach where all involved partieswill discuss the dispute in bilateral or multilateral level? Indonesia believes that Confidence Building Measures to promote understandingbetween claimants will ensure peace and stability in region. These CBM may includeworkshop approach, joint projects in disputed areas and co-operation in energyexploration.? When the threat of loss of economy and political risk outweighs the military gain, thestate will act rationally to avoid conflict. Thus, peace is established.To conclude with the government of Indonesia calls upon the world community tothink big if we want to solve this internationalized dispute. Only then this optimisticplan outlined today will have its development. And the approach that we adopt mustbe based on open minded and respectful towards all neighboring sovereign state.