Southeast Asia is expected to be one of the fastest-growing regions in the world. However, this economic growth is threatened by the worsening impacts of climate change in ASEAN Member States. According to the latest IPCC report, rising temperatures increase the likelihood of heatwaves and floods in Southeast Asia. Three major cities in Southeast Asia—Jakarta, Kuala Lumpur, and Ho Chi Minh City—are at significant risk of flooding and sea level rise. Mitigating these climate change impacts is crucial for both national governments and ASEAN as a regional institution. Cutting carbon emissions through transitioning to clean energy should be a priority to mitigate climate change impacts in ASEAN. According to IRENA projection, to align with the Paris Agreement, the renewable energy share in ASEAN should reach around 65% by 2050. However, ASEAN needs to accelerate its renewable energy deployment since, in 2020, renewables only accounted for 14.2% of the total primary energy supply (ACE, 2022).
Raising climate and clean energy ambitions in ASEAN is not an easy task. Institutional challenges persist, such as the lack of effective cooperation between member states and difficulties in establishing a common language about decarbonization (ISEAS, 2022). The ISEAS Yusof Ishak Institute also conducted a survey among ASEAN citizens about their perceptions of the role of ASEAN, and 82.6% of respondents perceived ASEAN as starting to lose its relevance and effectiveness in its role as a regional institution. Addressing these challenges of the declining role of ASEAN, as well as how ASEAN as an institution can approach the issue of climate change with more urgency, now falls under the responsibility of Indonesia as its chairman.
During this year’s ASEAN Energy Cooperation, Indonesia proposed Sustainable Energy Security through Interconnectivity as the main theme. This proposal was also affirmed by the Chairman’s Statement of the 42nd ASEAN Summit, where ASEAN is committed to accelerating the energy transition and promoting energy cooperation between the member states. One of the outcomes initiated by Indonesia is the commencement of the Brunei-Indonesia-Malaysia-Philippines Power Integration Project (BIMP-PIP), the newest installation within the regional interconnectivity project, the ASEAN Power Grid (APG).
Traces of Indonesia’s proposal lead back to its G20 presidency agenda last year. Energy transition was one of the priority issues, and Indonesia successfully hosted the forum amidst the turmoil of the Ukrainian war. Now, under the baton of the ASEAN chairmanship, Indonesia has the opportunity to replicate last year’s success to further affirm its leadership in the region. The success of Indonesia is expected to increase the visibility and relevance of ASEAN as a regional institution. And just like last year, energy transition might be the key to unlocking this success.
As the largest economy in the region, as well as having the largest potential for renewable energy sources, Indonesia can leverage its position to advance a more ambitious plan for the acceleration of energy transition in ASEAN. For instance, last year’s G20 saw the launch of two landmark initiatives for energy transition: the Just Energy Transition Partnership and the ADB Energy Transition Mechanism (ETM) Country Platform. Indonesia’s drive to bring tangible outcomes within multilateral negotiations about climate change demonstrated its commitment to global energy transition efforts. With clean energy issues gaining traction in recent years, Indonesia should harness the momentum and use its diplomatic prowess to forge more strategic partnerships beneficial to the development of clean energy in Southeast Asia.
With the proposed theme of “ASEAN Matters: Epicentrum of Growth” Indonesia is committed to deliver sustainable economic growth to the region. The first semester of Indonesia’s ASEAN chairmanship is coming to a close, and it remains to be seen whether Indonesia can achieve another milestone for energy transition in the region. Nevertheless, there is still a window of opportunity for relevant stakeholders to keep tabs on the progress of Indonesia’s ASEAN chairmanship and to push for a more ambitious decarbonization agenda in Southeast Asia.
