Indonesia, being one of the largest economies in Southeast Asia, is taking a leadership role in promoting sustainable energy security in the region through interconnectivity efforts. With the increasing demand for energy and the need to mitigate the negative impact of climate change, Indonesia recognizes that interconnecting electricity grids and diversifying energy sources can help achieve sustainable energy security. In this article, we explore how Indonesia is encouraging the development of interconnectivity in the region and the benefits it can bring for the environment and the economy.
Indonesia is all set to take over the chairmanship of the Association of Southeast Asian Nations (ASEAN) in 2023, with a focus on achieving sustainable energy security through connectivity. The Secretary General of the Ministry of Energy and Mineral Resources, Rida Mulyana, has highlighted that energy security will drive the economic growth of ASEAN countries. The region is already a leading hub for global economic development and is expected to grow further in the next five years. Hence, it is essential to utilise and synergise the various abundant energy sources of ASEAN to cater to the increasing demands of the region.
Rida further explains that interconnectivity among ASEAN countries is necessary to utilise new energy sources efficiently, curtail the dependence on fossil fuels, and create a sustainable and reliable low-carbon energy system. This interconnectivity will accelerate the clean energy transition and fulfil climate change mitigation action commitments in the ASEAN countries.
Addressing the ASEAN Event Series: Preparation to Advance Multilateral Electricity Trading in The ASEAN Power Grid (APG) in Supporting Sustainable Energy Security Through Interconnectivity in Jakarta, Rida emphasized Indonesia’s focus on the issue of interconnectivity among ASEAN countries as the key driver to achieve sustainable energy security. To realise this, he calls for active collaboration and preparation to advance multilateral energy trade among the ASEAN countries. The ASEAN Power Grid (APG) and the Trans ASEAN Gas Pipeline are two initiatives that Indonesia is proactively carrying out to achieve this mission.
The APG Memorandum of Understanding (MoU) was signed in the early 2000s, and since then, it has been established that all ASEAN member countries will benefit from a connected power grid. Indonesia has requested an extension of this MoU even after 2024. In 2022, Laos, Thailand, Malaysia, and Singapore have already implemented the landmark Lao PDR, Thailand, Malaysia, Singapore Power Integration Project (LTMS-PIP), resulting in increased utilisation of renewable energy sources, and increased network resilience and stability of electricity in the sub-region.
The Head of ASEAN Power Utilities/Authorities (HAPUA) plays a crucial role as a link in achieving interconnectivity in ASEAN. HAPUA is key to the flagship program of ASEAN, namely the ASEAN Power Grid (APG). With the enthusiasm of the ASEAN countries to utilise interconnectivity, Indonesia encourages the initiation of new interconnections in the Brunei, Indonesia, Malaysia, and the Philippines (BIMP) sub-region. Indonesia also expects continuous support from BIMP and HAPUA countries in implementing the new Intergovernmental Agreement on Multilateral Electricity Trade in the BIMP region.
Through this chairmanship, Indonesia aims to promote a Joint Declaration of Sustainable Energy Security through Interconnectivity, highlighting the consensus between the ASEAN member countries. This will further boost collaboration and preparedness to advance multilateral energy trade to achieve sustainable energy security through connectivity.
Indonesia’s efforts in achieving sustainable energy security through connectivity are highly significant for the ASEAN region’s growth and can set an example for other global regions to follow. The interconnectivity among ASEAN countries will lead to a smooth, reliable, sustainable, and affordable low-carbon energy system, igniting the economic engine of the ASEAN countries.
