Brunei , officially the Nation of Brunei, the Abode of Peace, is a sovereign state located on the north coast of the island of Borneo in Southeast Asia. Apart from its coastline with the South China Sea, the country is completely surrounded by the state of Sarawak,Malaysia. It is separated into two parts by the Sarawak district of Limbang. Brunei is the only sovereign state completely on the island of Borneo; the remainder of the island's territory is divided between the nations of Malaysia and Indonesia. Brunei's population was 408,786 in July 2012.