ASIA PACIFIC UPDATES
Press Releases of PJCI
The 42nd ASEAN Summit in 2023 in Labuan Bajo, East Nusa Tenggara, was held on 10-11 May 2023. The results of the 42nd ASEAN Summit have resulted in several agreements regarding various issues discussed and conveyed by President Joko Widodo. The 2023 ASEAN Summit agreement points related to the energy sector is :
Electric Vehicle Ecosystem Development
The 2023 ASEAN Summit agreed on the use of electric vehicles to reduce greenhouse gas emissions, accelerate the energy transition, decarbonize the land transportation sector in the Southeast Asia region, achieve Net Zero Emissions, and increase energy security in each ASEAN member country. Representatives of ASEAN countries have the same commitment to developing a regional electric vehicle ecosystem by involving all ASEAN members. The Association of Southeast Asian Nations is working to boost the electric vehicle industry and make ASEAN a global production hub.
The 56th ASEAN Foreign Ministers’ Meeting (AMM) was held on 11-12 July 2023 in Jakarta, Republic of
Indonesia. The Meeting was chaired by Indonesia under the theme “ASEAN Matters: Epicentrum of Growth.” We reaffirmed ASEAN’s commitment to strengthen ASEAN as an organization that is robust and agile, and equipped with strengthened capacity and institutional effectiveness to address today’s challenges and to remain credible and relevant for its people, the region, and the world while continuing to serve as the region'sepi center of growth and prosperity. POINT 37: We noted with appreciation the work of the ASEAN Connectivity Coordinating Committee (ACCC), Lead Implementing Bodies and relevant ASEAN Sectoral Bodies, as well as the MPAC 2025 National Coordinators, National Focal Points and relevant national agencies in advancing the implementation of MPAC 2025 and the AOIP. In this regard, we welcomed the launch of the ASEAN 8 Sustainable Urbanisation Report in December2022 as well as the endorsement of the Framework on ASEAN Supply Chain Efficiency and Resilience and the Report on Supply Chain Analysis on 10 Specific Product Groups in March 2023. We therefore looked forward to the follow-on development of the implementation plan for the Framework and the additional supply chain analysis covering food security and energy resilience. We also expressed our appreciation to our Dialogue Partners and other external partners for their continued support to the MPAC 2025 as well as the growing interest in developing stronger cooperation on connectivity through the Connecting the Connectivities Initiative. POINT 63 We expressed our commitment to support the timely realization of Indonesia's Priority Economic Deliverables (PEDs) under the ASEAN Economic Community (AEC) pillar, which is anchored on the three strategic thrusts of (i) Recovery and Rebuilding, (ii) Digital Economy, and (iii) Sustainability. These PEDs aim to address the immediate challenges in ensuring the region’s postCOVID-19 pandemic recovery and rebuilding, and further the momentum for ASEAN as an epicenter of growth through inclusive digital economy integration, sustainable economic development, strengthening financial stability, energy security, and food security, as well as accelerating the implementation of the AOIP. POINT 65: We emphasized the importance of accelerating energy transition and enhancing interconnectivity to achieve sustainable energy security, while ensuring energy resilience and accessibility, through among others, initiatives such as the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), and the implementation of the ASEAN Power Grid (APG) and Trans ASEAN Gas Pipeline (TAGP).We looked forward to the adoption of Joint Declaration on Sustainable Energy Security Through Interconnectivity and the initiation of the Brunei Darussalam-Indonesia-Malaysia-the Philippines Power Integration Project (BIMP-PIP) at the 41st ASEAN Ministers on Energy Meeting and its Associated Meetings (AMEM-41) in August 2023 in Bali, Indonesia.
The 41st AMEMIN INDONESIA 2023
The 41st AMEM this year was attended by 11 ASEAN member countries where Timor Leste acted as observer, 8 state dialogue partners and a number of international organizations that support ASEAN energy cooperation. The ASEAN Ministers on Energy Meeting (AMEM) aims to establish intensive cooperation in developing energy resource potential in the ASEAN region, attracting private sector participation and investment in the ASEAN energy sector.
The 41st AMEM will be held on 22 August – 26 August 2023 in Bali, Indonesia. This event has the target of encouraging further development of cross-border energy infrastructure projects among AMS countries to achieve sustainable energy security through interconnectivity. The event will also reaffirm ASEAN's commitment to reducing carbon emissions and accelerating a just and inclusive energy transition in the region.
Previously, the Senior Officials Meeting on Energy ASEAN (The 41st ASEAN SOME) was held at the ASEAN Secretariat Jakarta on 19-23 June 2023. In this event, the Minister of Energy and Mineral Resources invited all ASEAN countries to collaborate together in accelerating the energy transition toward sustainable energy. cleaner.
TOPIC 1
MOU SIGNING: ASEANCOLLABORATION TO STRENGTHEN ENERGY SECURITY
Southeast Asia remains an economic growth region that requires collaboration. This collaboration was marked by the signing of an MoU witnessed by the Indonesian Minister of Energy and Mineral Resources (ESDM)and other ASEAN Energy Ministers.
This collaboration is an implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II 2021–2025. One of these cooperatives is ASEAN Power Grid (APG). "The signing of this MoU reaffirms our joint commitment to increasing the interconnectivity of electric power transmission. "Apart from that, the signing of the MoU also shows that the ASEAN Power Grid continues to be the main priority for energy cooperation under APAEC," explained Head of Communications, Public Information Services and Cooperation Bureau of the Ministry of Energy and Mineral Resources Agung Pribadi,in Bali on Friday (25/8/2023) . The area of cooperation in the signed APG is the Indonesia-Malaysia Cross-Border Electricity Interconnection. Currently, the ASEAN Interconnection Masterplan Study (AIMS) III identifies 18 potential interconnections with a cumulative capacity of 33 gigawatts in 2040. Agung added that two MoUs had already been signed. The first is the MoU between the ASEAN Center for Energy (ACE), PT PLN (Persero), and Bahan Nasional Berhad (TNB) regarding cooperation in working on the potential for interconnection between Sumatra Island and the Peninsula. "This will be the first underwater cross-border interconnection in the region," he explained. There was also the signing of an MoU between ACE, PT PLN (Persero), and Sabah Electricity Sdn Bdn (SESB) in the provinces of Kalimantan and Sabah. This collaboration creates interconnectivity for sustainable energy security in Brunei Darussalam, Indonesia, Malaysia and the Philippines (BIMP). In the future, cooperation between power generation companies can be increased not only between BIMP but also all ASEAN member countries. "The cooperation signed today will certainly strengthen and increase our efforts to achieve sustainable energy security and accelerate the energy transition," concluded Agung. Apart from signing the MoU, a number of agreements were also made between strategic partners to emphasize ACE's commitment to encouraging positive change in the energy sector in Southeast Asia.
TOPIC 2 ENERGY INFRASTRUCTURE INTERCONNECTIVITY, THE KEY TO STRENGTHENING ENERGY SECURITY IN THE SOUTHEASTASIA REGION
ENERGY INFRASTRUCTURE INTERCONNECTIVITY, THE KEY TO STRENGTHENING ENERGYSECURITY IN THE SOUTHEAST ASIA REGION Secretary General of the Ministry of Energy and Mineral Resources (ESDM), Dadan Kusdiana, stated that energy infrastructure interconnectivity is a key strategy for strengthening energy security in the Association of Southeast Asian Nations (ASEAN) region and the transition towards new, renewable energy. through efficient distribution of resources. Dadan conveyed this at the 2023 ASEAN Energy Business Forum (AEBF) press conference in Nusa Dua, Bali on Thursday (24/8). "Developing interconnectivity in the ASEAN region, especially through the ASEAN Power Grid (APG) and Trans ASEAN Gas Pipelines (TAGP), is important to optimize energy potential, including renewable energy and natural gas as a balancing energy system," said Dadan. . Dadan further explained that the goals of ASEAN cooperation to increase renewable energy by 23%, increase the installed capacity of renewable energy by 35%, and reduce energy intensity by 32% by 2025 can be increased through progressive development of interconnectivity. "Collaboration between stakeholders is needed to achieve ASEAN interconnectivity growth, as well as overcome climate change,resource scarcity and technological development," said Dadan. In line with Dadan, Andy Tirta, Manager of Corporate Affairs, ACE, and Chairman of AEBF 2023, stated that the AEBF event had invited various parties to support the chairmanship of Indonesia and the ASEAN energy sector,including the government, academics, private industry players. , researchers, and international organizations.
AEBF 2023 is one of a number of initiatives of the 41st ASEAN Energy Ministers' Meeting (AMEM-41). Carrying the theme "Accelerating Energy Connectivity to Achieve Sustainable Growth of ASEAN", this event will be held on 24-26 August 2023 in Nusa Dua, Bali.
AMEM-41 CALLS FOR THE IMPORTANCE OF ENERGY SUSTAINABILITY, SECURITY AND INTERCONNECTIVITY
AMEM-41 CALLS FOR THE IMPORTANCE OF ENERGY SUSTAINABILITY, SECURITY AND INTERCONNECTIVITY
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif stated that during Indonesia's Chairmanship of ASEAN in 2023, Indonesia will concentrate and encourage at least three energy-related initiatives.
First and foremost, the importance of ASEAN as a growth region must be emphasized. ASEAN's role as the Epicenter of Growth is characterized by economic growth of 4.6 percent in 2023, as predicted by the Asian Development Bank (ADB), and an increase in average annual energy demand of 3 percent, as projected by the International Energy Agency (IEA ). ).
"In the most ambitious future scenario, two-thirds of the increase in energy needs can be met by renewable energy," said Arifin at the Joint Opening of the 41st ASEAN Energy Ministers' Meeting (AMEM-41) and the ASEAN Business Energy Forum (AEBF) in Bali Nusa Two Convention Centers(BNDCC), Bandung, Thursday(24/8).
Then, in the ASEAN energy sector, the Chairmanship highlighted the main goal of achieving sustainable energy security through interconnectivity. “ASEAN's energy tagline rests on three energy pillars :sustainability, security and interconnectivity. "These pillars represent our mainchallengesinacceleratingenergyconnectivitytoachievesustainableASEANgrowth,"headded.
To realize this, according to Arifin, ASEAN will increase interconnectivity through the Trans-ASEAN Gas Pipeline (TAGP) and ASEAN Power Grid (APG), as well as commitments between other parties. "These platforms will support the path towards sustainable energy and energy security ,so that safe and sustainable ASEAN growth can be achieved," said Arifin.
On this occasion, Arifin also mentioned that ASEAN welcomed the arrival of Timor Leste as a new member. Through meeting sand related programs, "It is hoped that Timor Leste can learn about the progress and implementation of energy cooperation in ASEAN," he said.
At the end of his speech, Arifin hoped that AMEM-41 and AEBF could contribute to investment and cooperation in the three pillars of ASEAN Energy - Sustainability, Security and Interconnectivity. "Our success in these two important events is an effort to fulfill the second phase of the ASEAN Plan for Energy Cooperation and the Net Zero Emissions (NZE) targets of each country," he said.
The ASEAN Energy Ministers' Meeting (AMEM-41) will take place in Bali on 24-25 August 2023. The ASEAN Energy Ministers' Meeting aims to establish intensive cooperation in developing energy resource potential in the ASEAN region, thereby attracting the interest of the private sector. participation and investment in the ASEAN energy sector.
AMEM-41 also aims to encourage further development of cross-border energy infrastructure projects in ASEAN member countries to achieve sustainable energy security through interconnectivity. Apart from that, this event will also reaffirm ASEAN's commitment to reducing carbon emission sand accelerating a just and inclusive energy transition in the ASEAN region.
Topic 4
JOINT DECLARATION OF THE 41ST ASEAN MINISTERS ON ENERGY MEETINGON SUSTAINABLE ENERGYSECURITY THROUGH INTERCONNECTIVITY
The Forty-First ASEAN Ministers on Energy Meeting(AMEM) gathered in Bali, Indonesian 24 August 2023.
ACKNOWLEDGING the energy security and resiliency challenges faced by the region amidst global supply constraints, global geopolitical tensions, and the requirement for economic recovery;
GUIDED by the purposes and principles in the ASEAN Charter, the ASEAN Community Vision 2025, the ASEAN Economic Community Blueprint 2025, Master Plan on ASEAN Connectivity 2025, and the ASEAN Plan of Action for Energy Cooperation (APAEC)2016 – 2025;
HIGHLIGHTING Indonesia’s 2023 Chairmanship’s theme “ASEAN Matters: Epicentrum of Growth”, which underscores ASEAN’s commitment to ensure that ASEAN remains resilient, effective, and responsive to future regional and global challenges, while at the same time exerting efforts to strengthen ASEAN’s capability as the center of economic growth in the region, in which energy security is paramount;
ACKNOWLEDGING the ASEAN Leaders’ Statement on the Development of the ASEAN Community’s Post-2025 Vision which encouraged the advancement of a visionary, inspirational, robust, comprehensive, inclusive, and forward-looking vision to address current and future challenges and trends inside and beyond the region within a 20-yeartimeframe;
RECOGNIZING the crucial role of ASEAN energy interconnectivity in pursuing the United Nations (UN) 2030 Agenda for Sustainable Development, especially to achieve the UN Sustainable Development Goal No. 7 (SDG 7), including enhancing international cooperation to expand infrastructure and upgrade the technology for supplying modern and sustainable energy services for all;
COGNISANT that energy interconnectivity and market integration in ASEAN are key enablers for ASEAN energy cooperation to address energy security challenges and FINAL 2 accelerate just and inclusive energy transition in the region, especially to ensure the resiliency and stability of the power grid and energy supply chains;
FURTHER PROGRESSING the Bandar Seri Begawan Joint Declaration of the 39th AMEM on Energy Security and Energy Transition to take concrete actions to develop robust policies and measures, and strengthen national, bilateral and multilateral energy programes and projects that enhance energy resilience and improve energy security which form the foundation of an inclusive and just energy transition while taking into consideration respective national circumstances, capabilities, and priorities;
NOTING the progress and advancements in the ASEAN Power Grid (APG), especially on the ’Lao PDR-Thailand-Malaysia-Singapore Power Integration Project’(LTMS-PIP), which has been a monumental achievement in advancing the APG, as well as the various bilateral interconnections making some cross-border power transfer possible for eight (8) AMS;
EMPHASIZING the importance of the continuing role of natural gas in a well-balanced and just energy transition, including the need to enhance the connectivity and accessibility of gas and Liquefied Natural.
Gas (LNG) supplies for the region to tap on its indigenous energy resources and implement measures to ensure gas supply resiliency, through the implementation of the Trans ASEAN Gas Pipeline (TAGP), complemented by initiatives to expand the region’s LNG infrastructure including regasification terminals, LNG bunkering and small-scale LNG distribution networks;
UNDERSCORING the importance of the Memorandum of Understanding for the ASEAN Power Grid (APG MOU), the Memorandum of Understanding for the Trans-ASEAN Gas Pipeline (TAGP MOU), and the ASEAN Petroleum Security Agreement (APSA) and the continuation of existing mechanisms of cooperation in regional connectivity and emergency response;
RECOGNIZING that multilateral energy trading and a more resilient and integrated supply chain within the region would significantly increase the utilization of renewable energy sources and enhance efficiency and conservation;
RECALLING the findings and recommendations of the ASEAN Interconnection Master Plan Study III (AIMS III) and the Gas Advocacy White Paper, which have shown the feasibility and potential of energy interconnection in the region;
REAFFIRMING our shared commitment and collective responsibility in ensuring sustainable energy security in the region through interconnectivity.
DO HEREBY DECLARE TO: 1. Enhance energy interconnectivity, among others through the expanded implementation of APG and TAGP, by building on the success of existing interconnection projects, to achieve sustainable energy security; 2. Accelerate energy transition in accordance with respective national and regional circumstances and capabilities towards just and inclusive energy transitions while ensuring energy security, reliability, accessibility, sustainability, resiliency, and affordability; 3. Intensify measures to pursue regional aspirational targets as agreed in the APAEC, by expanding regional and multilateral electricity trading, strengthening grid resiliency and modernization, increasing utilization of renewable energy, deploying other advanced, cleaner, and low-carbon energy technologies, and enhancing energy efficiency and conservation cooperation for power systems and end-users; 4. Pursue aspirational regional target for interconnection of AMS through APG and TAGP, including LNG infrastructure, towards 2045, in line with the 20-year timeframe of the ASEAN Community’s Post-2025 Vision; 5. Support the extension and renewal of the APG MOU, TAGP MOU, and APSA, or their successor agreements; 6. Encourage the development of detailed studies to support the realization of ASEAN energy interconnectivity, such as feasibility studies on specific power integration projects, including in-land transmission and sub-sea cables, and the update of the TAGP Master Plan;
7. Welcome the initiative to pursue the establishment of the Brunei Darussalam Indonesia-Malaysia-Philippines Power Integration Project(BIMP-PIP), as a potential multilateral power trading project under the APG, in addition to the LTMS PIP, and
call for more AMS to initiate new multilateral power trading projects and bridge the gap by connecting the north, south, and east sub-regions based on the recommendations under AIMS III;
8. Encourage the possibility of establishing sustainable regional supply chains for solar, wind, geothermal, hydro, bioenergy, waste-to-energy, marine renewable energy, and energy storage systems to accelerate the energy transition in the region;
9. Further enhance cross-pillar cooperation under the ASEAN Community, ASEAN Dialogue Partners, International Organisations, as well as external partners, to address challenges in pursuing energy interconnectivity to support ASEAN’s long term energy security, while ensuring energy resilience and accessibility, and a just and inclusive energy transition agenda;
10. Deepen cooperation with the private sector, international financial institutions and donors, as wellas standards-setting bodies, to facilitate and support the deployment and financing of innovative energy technologies in fostering energy interconnectivity;
11. Emphasize the importance of addressing ASEAN long-term energy security and interconnectivity in the development of the APAEC 2026–2035and ASEAN Community’s Post-2025 Vision;
12. Task the ASEAN Senior Officials on Energy, in close consultation with the Heads of ASEAN Power Utilities/Authorities and the ASEAN Council on Petroleum, to take coordinated action to implement this Declaration.
ADOPTED in Bali, Indonesia, on this Day of August Twenty Fourth in the Year Two Thousand and Twenty-Three.
DEFA (Digital Economy Framework Agreement) on MAM KTT ASEAN 2023
According to the Coordinating Minister for Economic Affairs, Airlan Hartanto, cooperation in the digital sector will increase economic value
by up to IDR 2 trillion. Discussions on the ASEAN Digital Economic Framework Agreement (DEFA) are targeted for completion in 2025.
The ASEAN Digital Economy Framework Agreement (DEFA) was officially launched at a Ministerial level meeting, namely The 23rd ASEAN Economic Community Council (AECC) Meeting, Sunday (3/9/2023).
Coordinating Minister for Economic Affairs, Airlangga Hartarto as chair, said that when DEFA is
implemented in 2025, ASEAN's digital economic potential will potentially double within five years after it is implemented.
"Indonesia's launch of DEFA, if DEFA is implemented in 2025, it will increase ASEAN's digital economic potential, which is business as usual, US$ 1 trillion. But with the implementation of DEFA, it could increase to US$ 2 trillion in 2030," explained Airlangga in a press conference, Sunday. (3/9/2023).
Some important results of the 43rd ASEAN Summit are realizing the ASEAN electric vehicle ecosystem, Digital Economy Framework Agreement (DEFA), energy security, implementation of the Chiang Mai Initiatives and Local Currency Transaction (LCT), food security, ASEAN Outlook on Indo-Pacific, and related investment in the ASEAN Indo-Pacific Forum
The ASEAN Digital Economy Framework Agreement (DEFA) was officially launched at a Ministerial level meeting, namely The 23rd ASEAN Economic Community Council (AECC)Meeting, Sunday (3/9/2023).
Coordinating Minister for Economic Affairs, Airlangga Hartarto as chair, said that when DEFA is implemented in 2025, ASEAN's digital economic potential will potentially double within five years after it is implemented.
"Indonesia's launch of DEFA, if DEFA is implemented in 2025, it will increase ASEAN's digital economic potential, which is business as usual, US$ 1 trillion. But with the implementation of DEFA, it could increase to US$ 2 trillion in 2030," explained Airlangga in a press conference, Sunday. (3/9/2023).
IRENA Reveals Energy Transition in ASEAN Requires Funds of 29.4 Trillion US Dollars
The International Renewable Energy Agency (IRENA) revealed that a financial injection of 29.4 trillion US dollars is needed until 2050 to implement the energy transition in ASEAN (Association of Southeast Asian Nations) with a 1.5 degree Celsius scenario with a 100 percent renewable energy scheme.
"According to the IRENA Renewable Energy Outlook for ASEAN report, to implement the energy transition, ASEAN needs funding of 29.4 trillion US dollars until 2050 in a 1.5 degree Celsius scenario with 100 percent renewable energy," said the Minister of Energy and Mineral Resources ( ESDM) Arifin Tasrif when opening the Sustainable Energy Financing and Mobilization of Energy Investments to Ensure Energy Security and Achieve NDCs In ASEAN event in Bali, Wednesday (23/8/2023).
In his statement in Jakarta, Thursday24 August
2023, the Minister of Energy and Mineral Resources said ASEAN member countries had realized the importance of developing sustainable energy, energy security and handling climate change.
To achieve this goal, several strategies are being implemented, including developing clear concepts for financing a sustainable energy transition, establishing a long-term renewable energy roadmap, and implementing environmentally friendly technologies.
Arifin said the need for such large funds was aimed at developing renewable energy generation, transmission (national and international), distribution and storage, biofuel supply, electrification (EV cars and EV chargers), as well as considering a broader cost perspective which includes material costs. fuel, operation and maintenance.
"To finance these steps, sustainable energy financing is urgently needed. This can be achieved through various means, including, mixed financing which can take various forms, such as grants, soft loans with favorable terms, and joint investment. Second, "public-private partnerships (PPP) and international funding by accessing international climate funds, such as the Green Climate Fund, can provide additional resources for clean energy initiatives," he explained.
Arifin also revealed that apart from funding a conducive environment for investors, it is also important to mobilize investment in environmentally friendly energy and this can be created through providing incentives, a clear and supportive policy framework, including long-term energy plans and regulations that can build investor confidence, and finally, transparent investment procedures.
Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Yudo Dwinanda Priaadi, also said that implementing the transition requires funding and investment, both of which are big challenges that must be overcome. "Getting funding from developed countries such as Just Energy Transition Partnerships (JETP), Asia Zero Emission Communities (AZEC), and Energy Transition Mechanism (ETM) is very important. In addition, innovative environmentally friendly financing such as environmentally friendly bonds, service companies energy (ESCO),and other financing schemes are encouraged to be explored and implemented," said Yudo. ***
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