Malaysian Prime Minister Mahathir Mohamad said on November 7 Indonesia feels that bilateral problems between the republic and Malaysia can be resolved through negotiations.

This was stated by Indonesian President Abdurrahman Wahid in a meeting with him here Saturday, Mahathir told reporters at the Deepavali (festival) open house of Works Minister S. Samy Vellu here.

"We (Malaysia) found that in terms of bilateral relations, there are not many changes, except that they (Indonesia) feel that any problem between Malaysia and Indonesia can be resolved through negotiations without referring to third parties," he said.

The bilateral problems between the two countries include the overlapping claims over two small islands -- Ligitan and Sipadan.

Mahathir said his discussion with Abdurrahman was to touch base because Malaysia wanted to get to know the new Indonesian government better.

Abdurrahman left for Myanmar earlier Sunday after a two-day working visit to Malaysia.