Search

Begin New Search Political Geography Indo-Pacific Publishing Institution Center for Strategic and International Studies

1. Fuel Competition in the Expanding Power Market Renewable Energy in Southeast Asia

Author:
Stephen Naimoli and Jane Nakano
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
This report provides a summary of the discussion from a CSIS roundtable held on April 13, 2018, as part of the CSIS-Pertamina Energy Initiative. The discussion brought together government, industry, and policy experts to explore the outlook for the region’s energy mix out to 2040, the state of renewable energy in Southeast Asia, and its role in the region’s energy priorities. This was the first in a series of events that will be convened this year to examine the role of renewable energy in Southeast Asia and its security, economic, and political importance in the Indo-Pacific. Southeast Asia is one of the fastest-growing regions in the world. The region’s gross domestic product (GDP) grew 66 percent from 2006 to 2015, and if all 10 countries were one economy, it would be the seventh-largest in the world. This growth is projected to increase, averaging just over 5 percent annually from 2018 to 2022. With economic growth comes demand for energy. From 2000 to 2016, economic growth in Southeast Asia drove a 70 percent increase in primary energy demand. Governments in Southeast Asia have implemented a range of policies and incentives to ensure they meet their energy demand. Renewable energy (wind, solar, geothermal, and sometimes hydro and biomass) is capturing an increasing, although not dominant, amount of attention from policymakers, investors, and the private sector as an important part of meeting this demand. Renewable energy’s share of the electric power mix is driven by a range of factors—the economics of power generation, efforts to reduce greenhouse gas emissions, energy security concerns, and concerns over local air pollution. While renewable energy is set to grow as a share of the region’s energy mix, there are indications that its potential contribution is much higher than is currently on track to be realized. Renewable energy increasingly competes on an economic basis in many countries against all fuels except coal, but sometimes political and socioeconomic factors stand in the way of improving their competitiveness in specific markets. The region is also attracting a great deal of outside investor interest. Countries from around the region and ever farther afield are investing in Southeast Asia’s energy sector because of the rapid growth experienced over the last decade and half, and their investment priorities, along with economics, shape their investment decisions in Southeast Asia. Energy policy and investment decisions are also being driven by the shifting nature of supply-and-demand balances in each country and the shifting domestic realities that come from becoming a net importer of specific fuels, such as in Indonesia. Many Southeast Asian countries have integrated low- or zero-carbon renewable energy into their energy planning efforts, and this report examines the dynamics of the power sector in Southeast Asia and how renewable energy competes with fossil fuel sources of electricity.
Topic:
Security, Energy Policy, Oil, Governance, Gas, Electricity, Renewable Energy, and Industry
Political Geography:
Indonesia, Asia, Southeast Asia, and Indo-Pacific

2. Enhancing the U.S.-Indonesia Strategic Partnership

Author:
Brian Harding and Andreyka Natalegawa
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The United States and Indonesia are natural partners. Despite our geographic distance, we have striking similarities. We are large, diverse, and democratic societies. We both seek an international order in the Indo-Pacific region based on rules that enable all countries to have a voice. Our shores each span two oceans, imbuing our countries with a deep maritime heritage and culture that shapes how we approach the world. When each plays its natural role as a leader in regional affairs, both parties benefit. In recognition of the great mutual benefit that a close U.S.-Indonesia partnership could bring, Presidents Barack Obama and Susilo Bambang Yudhoyono launched a comprehensive partnership in 2010 to build closer government-government, economic, and people-people ties between our two countries. Critically, the agreement created a framework for collaboration across a multitude of government departments and ministries under a joint commission co-chaired by the U.S. secretary of state and the Indonesian minister of foreign affairs. In 2016, under President Joko Widodo (Jokowi), the comprehensive partnership was elevated into a strategic partnership, further signaling the relationship’s importance to both countries. Yet despite having many common interests and recent high-level efforts to push the relationship forward, U.S.-Indonesia relations are not meeting their potential. Bilateral economic interaction is limited compared to the size of our economies. Official interaction is often bureaucratic and rarely strategic. And people-people relations, including of education exchanges, are minuscule considering that Indonesia and the United States are the third- and fourth-most-populated countries in the world. President Donald Trump’s political ascent has also created additional headwinds for U.S.-Indonesia relations. Candidate-Trump’s statements regarding the Muslim world caused unease in Indonesia and his policies as president toward Israel and Palestine have damaged Indonesian views of the United States. In Asia, the Trump administration’s framing of great-power competition with China and the administration’s nontraditional economic statecraft have created uncertainty in Jakarta. From Washington’s perspective, the Jokowi administration’s relative disinterest in playing a leading role in the Association of Southeast Asian Nations (ASEAN) and in the broader Indo-Pacific region has dampened enthusiasm in some quarters for investing in the relationship. Recognizing the importance of both the U.S.-Indonesia relationship and its continued underperformance, on May 3, 2018, the CSIS Southeast Asia Program convened a first annual bilateral, track 1.5 strategic dialogue in Washington, D.C., to inject new momentum into the relationship and to begin building deeper connectivity between policy experts in the two countries. This report outlines conclusions and recommendations that surfaced during the dialogue. However, the report reflects the opinions of the authors, and does not necessarily reflect those of the dialogue participants.
Topic:
International Cooperation, Culture, Maritime, and Economic Cooperation
Political Geography:
United States, Indonesia, North America, and Indo-Pacific