Heat up oil in a pot. Brown the chicken pieces for about 3-5 minutes. Add water, coconut milk, soy sauce, vinegar, garlic, pickled ginger, black pepper, and the bay leaves. Stir everything together. Cover and simmer in medium heat.
Stir occasionally and check how tender the chicken pieces are. Once the sauce has reduced (there should be about less than a half left), add the potatoes. Stir and cover the pot again. Let the potatoes cook until fork-tender. Open it once to stir.