The world has encountered a crisis several times. In facing a crisis, every nation’s leader will need to strive to prevent the existing disaster from having a major impact on the country’s economy. This is because the economic crisis can have consequences for the reputation and the stability of the political regime itself.
Unlike the crises caused by unregulated economic practices such as during the Great Depression in 1929 or the Global Financial Crisis in 2008, the catastrophe that the world currently confronting today is prompted by the COVID-19 virus. This new type of disease has eventually sparked into the global pandemic and already created tremendous negative disruption toward economics and businesses around the world.
Of course, the panacea for this problem is not easy since it takes the extraordinary capability of the state to bear with a load of health costs and prevailing economic burden to its society.
Most of the countries having a really hard time coping with this ‘black swan’ event. While, for some emerging economies with weak public health capacity, and slow policy process has already struggled with the socio-economic impact of the virus.
In this backdrop, although countries in Southeast Asian (SEA) regions have already made an impressive economic achievement post-Asian Financial Crisis in 1997, they have to swallow the bitter pill again as their economy agonized from this significant blow.
The countries within the ASEAN have suffered a great economic loss due to the pandemic. According to the latest forecasting report by the Asian Development Bank (ADB),the GDP growth rate of Indonesia and Laos has been contracted to minus 1 percent and 2.5 percent respectively. Other nations such as Cambodia, Malaysia, and Singapore have been predicted to befall averagely under minus 4 percent. While the Philippines and Thailand have even major severe shocks as their economy sharply contracting in excess of minus 7 percent. Only several states such as Vietnam, Brunei Darussalam, and Myanmar have performed slightly better.
This phenomenon is indeed very upsetting, especially because these countries are highly dependent on foreign investment, trade, and the tourism sector as the main engine to drive economic growth respectively.
The tricky part comes when the state cannot provide its citizen with adequate support and accountability. Apart from the debate about which ideological system is best in dealing with a pandemic, we need to understand well that political turmoil is often triggered by the inability of the state to meet the needs of its people. The public health emergency coupled with the economic crisis, and problematic policy selection can swiftly turn into unrest since the society vigorously looking for justice and protection over their wellbeing.
Compared to other ASEAN member states, Vietnam and Singapore are effectively tolerate the impact of turbulence because of their impressive management of public health systems. While other nations in the region seem to have different stories.
In Indonesia, regime stability has been affected by COVID-19. From the beginning of the outbreak, among other ASEAN member states, Indonesia was the latest one who got struck by the virus. But it turns out that Indonesia becomes a country with the largest infected cases in the region. The lack of government coordination and assistance in tackling the pandemic has made the economic condition of the country worsen. In addition, the most recent enactment of the omnibus law of job creation that predominantly in favor of businessmen and investors has triggered the wide-spread protest toward the government across the archipelago since early October.
Likewise, the Philippines also has to face the fatal economic damage caused by the pandemic as the unemployment number and poverty rates have significantly risen. Despite the government’s extreme militaristic measures to contain the pandemic, the number of infected cases and death ratio still upsurging, second only to Indonesia. Yet, this has sparked both national and international criticism on President Duterte’s repressive approach.
In Malaysia, the government must engage with the second wave of the pandemic. After generally succeed in the first attempt to tackling the outbreak, the infected rate has steadily increased particularly in Sabah, after holding local elections on 26 September. Apparently, the political upheaval began to appear when Prime Minister Muhyiddin Yassin insist to put the country under a state of emergency. Although in the end the proposal was later rejected by Malaysia’s King Sultan Abdullah, the declaration to suspend the parliament was roundly condemned by opposition figures in the country and also mounted concern among Malaysians.
Amongst other countries in the SEA region, Thailand currently in the state of a serious political crisis mode provoked by a series of anti-government demonstrations. The Thai people demanding to reform the Thai constitutional monarchy and removal of Prime Minister Prayuth Chan-ocha from his office. This situation has made Thai authorities announced the country to entered the emergency decree. Though the protester vigorously attacked the government solely for the political reform motives, the issue of the economy has virtually played a quite larger part. Previously, the country’s strategy in responding to the outbreak of the disease domestically had relatively efficacious. However, the long period of the lock-down policy has brought down deep frustration on the government since the economic inequality, poverty rate, and desperateness for the job among the young generations have ominously increased.
Conclusively, the pandemics of COVID-19 have become an interesting setting for testing the stability of the political regime in ASEAN. The virus has considerably contributed as a catalyst for the economic crisis. Clearly, the pattern of political turmoil and civil disobedience has gradually begun to appear as the countries started to be overwhelmed by the collision of the crisis.
It’s no doubt that Indonesia and the Philippines will deeply fall into another economic recession which can potentially ignite another massive civil unrest toward the regime. Malaysia similarly could face another heated political situation. Yet, the country’s capacity to handle the crisis still can make the regime to be relatively stable. While Thailand on another hand will face difficult circumstances. As the public has already tired of their flawed constitutional system, civil unrest will most likely continue to take the place. Consequently, the future political-economic outlook of Thailand in the near future will somewhat look worrisome.
Indonesia’s Leadership in ASEAN 2023: Young Generation as Game Changers in Echoing Regional Peace Narratives
‘ASEAN Matters: Epicentrum of Growth’ was announced by President Joko Widodo as the theme for the one-year relay of Indonesia’s leadership in ASEAN at the ASEAN Summit agenda on 13 November 2022 in Cambodia. As can be seen, Indonesia has received a lot of trusts and a progressive image from the international order, as evidenced by its success at the G20 multilateral economic cooperation forum in 2022, and this year Indonesia is preparing to become the leader of the regional organization agenda of The Association of Southeast Asian Nations (ASEAN) (Setkab, 2022). Indonesia openly gets many opportunities to introduce its identity to be more vocal regionally and multilaterally, one of which is introducing basic Indonesian principles such as Pancasila and Bhinneka Tunggal Ika (different but still one), which are compact or following the principles of international organizations which Indonesia chairs. As a reflection, ASEAN is indeed thick with diversity, so solidarity is one of the principles upheld. Archipelagically, Indonesia is a country composed of tracks of reconciliation with differences. So, in terms of harmonizing the differences that occur, Indonesia has vital ammunition for that.
The effort and enthusiasm of innovative and creative youth in various fields is a potent ammunition from Indonesia. According to the Central Statistics Agency (BPS), in 2021, the youth in Indonesia will be around 64.92 million people, or around 23.90% of Indonesia’s total population (Mahdi, 2021). What about the number of youths within the scope of ASEAN? ASEAN estimates that the total population of the younger generation will be around 220 million in 2038, which has yet to be accumulated with the estimated calculation of Timor Leste’s inclusion as the 11th member of ASEAN (CNN, 2022). So, the total population explosion must be utilized as the epicenter of progressive growth for all ASEAN countries. Referring to article 32 of the ASEAN charter, ASEAN leaders have three main tasks: spokesperson, chief executive, and tabling new initiatives. Also, in carrying out this leadership, the ASEAN chairperson must pay attention to several things: actively advancing and enhancing the interests of ASEAN members, guaranteeing ASEAN centrality, representing ASEAN, ensuring an adequate response, and carrying out its duties, principles, and functions to the fullest (ASEAN, 2008). There are three main pillars in the topic of ASEAN discussion; the first is the economic sector which is discussed in the ASEAN Economic Community (AEC), politics in the ASEAN Political-Security Community (APSC), and socio-culture in the ASEAN Socio-Cultural Community (ASCC). A topic that is interesting to young people and has a variety of uniqueness due to the diversity of ASEAN is ASCC-based so socio-cultural terminology will be the main focus of writing. The heart of ASCC is to ensure the quality of life (QOL); quality of life of the ASEAN people through cooperative activities with the concept of being people-oriented, people-centered, environmentally friendly, and promoting sustainable development (ASEAN, 2016). Therefore, when Indonesia chaired ASEAN, he had a significant role in maintaining regional and domestic stability. When the quality of life and regional stability are met, the situation is safe and free from threats, and the obstacles to achieving ASEAN’s vision can be reduced in tension. Regarding peace, the young generation of ASEAN, especially in Indonesia, must be introduced and well-educated as a game-changer to create peace in the Southeast Asian region. So, this article simultaneously proves the question, how can Indonesian youth be actively involved in regional peace through the momentum of Indonesia’s chairmanship in ASEAN in 2023?
Looking back on youth involvement in ASEAN, for the first time in 2022, ASEAN held a Youth Dialogue under the chairmanship of Cambodia in ASEAN in 2022. This Youth Dialogue is being held jointly with the Republic of Korea (ROK) and resulted in policy recommendations as a form of commitment from the younger generation in preparing for the industrial revolution 4.0 in the era of recovery from the COVID-19 pandemic (ASEAN, 2022). In other forums still under ASEAN’s attention, the younger generation has only made and submitted policy recommendations that have yet to be contributively and actively involved in the ASEAN process. Indicators or parameters of the younger generation’s influence in ASEAN regional forums still need to be determined because the younger generation still plays a passive role in ASEAN. On the other hand, many youth-based organizations, forums, communities, and start-ups in Indonesia exist. Until now, there are 2,346 start-ups in Indonesia, making Indonesia the first-ranked country with the most significant number of start-ups beating Singapore in second (Annur, 2022). Start-ups indicate the development of the young generation’s innovation and are a model and proof that Indonesia’s young generation already has the ammunition to put a ‘sense of influence’ among Southeast Asia’s younger generation. Indonesia’s momentum as chair of ASEAN in 2023 should further facilitate and provide opportunities for Indonesia’s young generation to become the epicenter of creation and innovation for the younger generation in the Southeast Asian region. The government must open up space for collaboration and cooperation between the younger generation of Indonesia and other young people in the ASEAN region so that the benefits generated are not only for the younger generation who will continue ASEAN in the future.
Citing the vital role of an ASEAN chairman, Indonesia has full power, for example, in recognizing the existence of a strategic and applicable youth regional forum according to the needs of the younger generation, for example, in cybercrime case studies. Events regarding cyber warfare and its derivatives are exciting and essential for the younger generation who live in an era of digital transformation where war, political weapons, the economy, and various aspects that can weaken national security are carried out through cyberspace. The point of cyber security at the ASEAN level must be a shared concern and mission. This mission can be focused on the younger generation, firstly through policy recommendations, secondly also through meetings or gatherings under the pillars of ASEAN in which the younger generation has not been a representative so far to listen to and interpret debates which also ultimately have an impact on their welfare, the younger generation can become observers in meetings involving high-ranking state officials, even though at the closing ceremony or summit, in the end, the younger generation can feel the atmosphere of meetings in ASEAN. In another form of involvement, the younger generation in Southeast Asia should have a common interest or shared goals, especially in viewing the centrality of ASEAN, and in this case, shared goals are formulated through meetings at the youth level which will ultimately position ASEAN to have a youth-way. The existence of multilateral forums such as dialogues and conferences will further increase awareness and a sense of solidarity with each other, so that common interests arise. The younger generation must promote, innovate, and integrate ASEAN in the focus of any issues that ASEAN will implement in the ASEAN leadership under Indonesia as its chairperson in 2023.
This analogy can describe the relationship of involvement and interrelationship between peace, the younger generation, and Indonesia’s leadership. Peace is a goal to be achieved, while the younger generation is a tool (game-changer) in achieving this goal, and Indonesia’s chairmanship of ASEAN in 2023 is the time or momentum. Through the younger generation, the concept of peace regarding fairness in opinion and innovation, the right to be protected from threats, and the right to be free to make choices these values will be reflected when the younger generation knows their position and what is the urgency and justification for their existence in this context. Indonesia’s leadership in several forums has been left from regional to multilateral. The low failure rate in these leadership positions indicates that peace as a form of embodiment of ASEAN’s vision and solidarity in its journey is possible, primarily through the younger generation’s involvement. Harmonization between the values upheld in each country in ASEAN, under the umbrella of ASEAN centrality, is expected not to become an obstacle to the unity of these ASEAN countries. Because the main actors are the younger generation, and the younger generation tends to have a character that likes to work together and produce new ideas exclusive to their field, the tendency to distort one another is rated low. Moreover, ASEAN is the driving force for the movement of the younger generation. A package that complements and fulfills one another.
The game-changer idiom construction in the title refers to the player context, which can bring about change very effectively. When the younger generation already has a portion of involvement, then the younger generation should make the most of this position. The more optimal the role of the younger generation, the more ASCC points will be achieved and creating ASEAN as the epicenter of growth, meaning that the full significance of change is approaching the final goal, then the young generation’s point as a game-changer will be realized. In the track record of making peace with differences, the young generation sparks significant peace (volcanically) in voicing an issue. It means that Indonesia’s ammunition through the younger generation as a game-changer is no longer wishful thinking, but a reality based on factual evidence.
ASEAN “We Care, We Prepare, We Prosper” this slogan reminds us to be ready for various opportunities and challenges and ignites the spirit of achieving shared prosperity. Indonesia’s chairmanship in ASEAN is one of the venues for strengthening Indonesian identity globally; Indonesia can realize the noble values of Pancasila, which are not rigid but adapt to the urgency of ASEAN in the next year. By involving the younger generation in a comprehensive and participatory manner, there is a strategic relationship between Indonesia’s leadership as momentum, the younger generation as a game-changer or tool, and peace that is trying to be vocalized and echoed because ASEAN matters. In the end, after the common goals are achieved, mutual benefits can be added value for Indonesia and ASEAN itself.
The impact of AUKUS against China and Russia on the security of Asia and the world
The United States, the United Kingdom and Australia revealed the details of a joint plan aimed at establishing a new fleet of nuclear-powered submarines, in order to counter China’s growing influence in the Indo-Pacific region, within the framework of the (Aukus) agreement of a defensive nuclear nature between the United States of America, Britain and Australia, which It was announced in December 2021. Here the question remains, about: Does the Aukus agreement qualify the world for a nuclear war between China, America and the countries allied with them? Whereas, under this agreement known as the “Aukus” agreement, Australia will receive the first nuclear-powered submarines, among at least three by the United States of America. The allies will also work to form a new fleet that will use the latest advanced technologies, including British-made Rolls-Royce reactors.
For its part, the United States of America strengthened its alliance with NATO countries in Europe, Japan and South Korea. In the Asia-Pacific region, or the Indo-Pacific in the American sense, Washington strengthened the Quadruple Security Dialogue Alliance, which also includes Australia, India and Japan, and then the Aukus Nuclear Alliance with the participation of Australia and the United Kingdom. These two steps are uncomfortable for Beijing and Moscow, which warn that such moves threaten to ignite a new cold war between all parties. This is what was stated in the report of the Chinese state broadcaster, CCTV, quoting one of the speeches of Chinese President “Xi Jinping”, assuring that:
“China and Russia need to take more joint measures to protect our security and interests more effectively, and that there is no formal alliance between the two countries.” However, Chinese President “Xi Jinping” confirmed to his Russian counterpart, Putin, that “this relationship goes beyond even the alliance between the two parties”. Accordingly, the Chinese and Russian presidents began to form an “independent financial infrastructure”, to reduce their heavy dependence on Western banks and their exposure to punitive measures from the West. Through their proposal to hold a possible tripartite summit with India, it began with the visit of Russian President “Putin” to the capital, New Delhi, and his meeting with Indian Prime Minister “Narendra Modi”, and then the two parties’ agreement for India to obtain the S-500 missile system. All of these Russian and Chinese moves are to obstruct US influence in response to its existing alliances against them.
Here, China denounced the massive cooperation program, warning that the (Aukus nuclear defense agreement) between Washington, Australia and Britain represented “a wrong path and a threat to regional and international security. China’s mission to the United Nations also accused the western allies, led by the United States, of obstructing efforts to curb the spread of nuclear weapons. Certainly, building a number of security and defense blocs of a nuclear nature, such as the Okus agreement to develop NATO’s infrastructure in the Asian region, will inevitably lead to a confrontation that will last for many years. This was stated in the International Atomic Energy Agency’s warning of the dangers of nuclear proliferation with the nuclear propulsion submarine program launched by the United States, Australia and Britain.
The danger of the Aukus nuclear agreement for China comes that it will be the first time ever around the world, in which three fleets sail together and in full coordination, namely the American, British and Australian fleets, across the Atlantic and Indian oceans in the Indo-Pacific region in the American concept or Asia Pacific in the Chinese concept under the slogan of preserving freedom of navigation. It certainly raises China’s anger and fears and threatens regional security in areas of direct influence of China. The biggest Chinese fear comes from the Okus defense nuclear agreement between the United States, Australia and Britain, given that, starting in 2027, the United States and the United Kingdom will establish a base that includes a small number of nuclear submarines in the Perth region of Western Australia, before the Australian capital, Canberra, buys three American Virginia-class submarines, with other options offered to Australia by Washington to buy two more submarines. This threatens long and continuous confrontations between China and the signatories to the Aukus nuclear agreement, due to its impact on the safety and security of China and its immediate regional surroundings.
Therefore, the Chinese warning came that the “Aukus Agreement” may lead to igniting an arms race in the region, with the three countries being accused of causing a setback in efforts to prevent nuclear proliferation. China looks with resentment, especially at the rapprochement that began in the past years in the Indo-Pacific region between the authorities of Taiwan and the United States of America, because of its decades-old military support for the island in the face of Beijing. Chinese President “Xi Jinping” accused the United States of leading Western efforts towards “containing, encircling, and completely suppressing China”. Here came the American response to China, with reference to Beijing’s raising the concerns of several countries in the Asia-Pacific region, through its threats to invade Taiwan, which enjoys democratic rule, according to Washington, in addition to the American emphasis on the need to protect the region surrounding China, given the threat posed by nuclear-armed North Korea in the face of its Japanese and South Korean neighbors and the security of the region.
The Aukus defense nuclear agreement represents a major leap for Australia, as this step for Australia, an ally of the United States, is a major development of its military capabilities. It became the second country after the United Kingdom to acquire Washington’s nuclear technology. The submarines are characterized by their ability to operate more and faster compared to the current fleet of diesel-powered submarines, and Australia will be able, for the first time, to launch long-range strikes against its enemies, according to the Australian perception. The Aukus agreement includes sending a group of Australian Navy personnel, starting from the current year 2023, to the American and British submarine bases for training on how to use the new nuclear submarines. This is a major step within the “Aukus” tripartite partnership agreement signed by the three countries, “USA, Britain and Australia” in 2021.
However, US President “Joe Biden” denied these Chinese and international accusations, stressing that the agreement aims to promote peace in the region from the American point of view, and that submarines will operate with nuclear energy and are not armed with nuclear weapons. During his meeting with UK and Australian ministers, “Rishi Sunak and Anthony Albanese” in San Diego, California, he said the agreement would not jeopardize Australia’s commitment to being a nuclear-weapon-free country.
The last analysis remains for analysts and foreign policy makers with regard to China and Russia after Washington concluded the Aukus nuclear defense agreement with Britain and Australia in the face of China and Russia mainly, that the United States of America, with its reckless behavior in the foreign arena, has brought the situation to the point that the world is about to enter into a global military and nuclear conflict between America itself on the one hand and China and Russia on the other hand through its alliances directed against them globally, such as the Aukus nuclear alliance with Britain and Australia and the Quadruple Alliance with Japan, South Korea, India and Australia.
Indonesia’s ASEAN chairmanship 2023 plays a pivotal roles on ASEAN Power Grid repercussions
Authors: I Dewa Made Raditya Margenta; Hidayatul Mustafidah Rohmawati*
Indonesia’s presidency at the next ASEAN Chairmanship may hold the key to unlocking the region’s most ambitious and promising energy project, the ASEAN Power Grid (APG) project.
This year, Indonesia will chair a multilateral meeting (again) called the 2023 ASEAN Chairmanship, with the theme of “ASEAN Matters: Epicentrum of Growth.” This meeting will hone in on enhancing ASEAN’s institutional capacity and effectiveness to be a fast-growing, inclusive, and sustainable economic region. This chairmanship will also further strengthen Indonesia’s diplomatic influence following the success of the G20 Presidency in 2022.
In this year’s chairmanship, Indonesia raises three priority issues in the economic sector: recovery and rebuilding, digital economy, and sustainability. These priorities implementation is translated into 16 Priority Economic Deliverables for 2023. One of the priorities focuses on building sustainable energy security through interconnectivity and market obligation. Therefore, this is a gate opener for a more substantial commitment to the long-awaited ASEAN energy project, ASEAN Power Grid.
Quo Vadis of the ASEAN Power Grid.
The ASEAN Power Grid project is the flagship program mandated in 1997 by the ASEAN Heads of State/Governments under the ASEAN Vision 2020. The project intends to boost grid modernisation and resilience, promote clean and renewable energy integration, and increase regional multilateral electricity trading between ASEAN member states. It could also provide an electricity solution for remote or undeveloped areas inaccessible by national transmission lines.
The ASEAN Power Grid could also assist the ASEAN member states in shifting their fossil fuel dependency by optimising renewable energy sources. ASEAN is projected to need an additional 479 GW of electricity by 2040 to fuel its economy. However, all ASEAN member states have a firm reliance on fossil fuels. Currently, fossil energy is still the primary electricity source in ASEAN, around 75% of the electricity production mix.
At the same time, the electricity generated from renewable energy sources also grows annually. Besides, ASEAN has abundant renewable energy potential; 8,119GW Gross Capacity of solar and 342GW of wind. Optimising renewable energy in the project could contribute up to 112,267 million tons of CO2e and 64 thousand tons of N2O of emission reduction by 2040. It could also significantly reduce the dependence on fossil fuels around 259 million tons of coal, 11.2 million tons of oil and 77 million m3 of natural gas. The ASEAN Power Grid project, therefore, could heavily rely on renewable energy and, ultimately, intertwine the economic development and climate mitigation in the ASEAN region.
Economically, the ASEAN Power Grid can reduce the annual operational costs of the ASEAN power sector by USD 1 billion. It corresponds to a supply cost reduction of around USD 1 per MWh. Increasing the cross-border interconnection infrastructure in ASEAN has further economic advantages and can support higher percentages of renewable energy use. The annual operations costs can be cut by 4-5 billion USD.
Other benefits also include potential green jobs. It is estimated that 100,000 – 200,000 green jobs could be created in 2040 and grow up to 700,000 in a more ambitious scenario.
(De)bottleneck the problem through multilateral cooperation
However, realising the ASEAN Power Grid has to deal with numerous challenges, primarily political mistrust towards the project. Some ASEAN members highly value the ideas of nationalism and sovereignty. Besides, the concept of self-sufficiency also becomes the bottleneck of cross-border electricity trade. For instance, exporting renewable energy is prohibited in Malaysia and Indonesia. Consequently, only half of the key cross-border ASEAN Power Grid interconnections were in operation from the first announcement.
Governments often need to be made aware of the potential of regional electricity connectivity. This connectivity could close the gap between electricity supply and demand, potentially widening in the next two decades. Furthermore, the uneven distribution of natural resources endowments within regions also prohibits the accomplishment of self-sufficiency, and it needs multilateral collaboration to realise energy security.
Therefore, Indonesia’s presidency on ASEAN Chairmanship 2023 must be the perfect timing to strengthen the ASEAN’s political will on the ASEAN Power Grid. As the natural leader within ASEAN, Indonesia could optimise their influence to enhance the political trust between members. Indonesia may not want to lose the political momentum when the G20 presidency was successfully held amid unprecedented circumstances, such as the Russia-Ukraine war.
As the leader, Indonesia might encourage the development of a consistent yet adaptive intergovernmental collaboration framework in the energy sector. This commitment is crucial for risk sharing and providing a clear line in the planning and permitting. This commitment is also vital as a certainty for the multilateral or private financiers to support the project financing.
In light of the significance of the ASEAN Power Grid for the regional economy and efforts to mitigate climate risk, it will be interesting to examine Indonesia’s viewpoint and political decision in the 2023 ASEAN Chairmanship.
*Hidayatul Mustafidah Rohmawati is a research staff of Purnomo Yusgiantoro Center (PYC). She has research interest in biobased energy and green industry sectors. She completed her degree from Universitas Brawijaya, Indonesia.
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