Indonesian Ministry Of Energy And Mineral Resources Calls For Collaboration To Accelerate Energy Transition In Southeast Asia

The Government of Indonesia through the Ministry of Energy and Mineral Resources (EMR) encourages continuous support and collaboration to ensure innovative partnership, sustainable and inclusive financing as well as access to necessary and effective technologies to accelerate energy transition, especially in the Southeast Asia region.

Minister of EMR, Arifin Tasrif, raised these points at the kick-off of the 41st Senior Officials Meeting on Energy ASEAN (41st ASEAN SOME) at the ASEAN Secretariat, in Jakarta. According to Arifin, there is a need to strengthen collaboration, not only between ASEAN Member States but also with international organizations and stakeholders

“Global energy landscape is urged to transition sustainably from fossil-dependent economy towards a low-carbon economy, in an inclusive and just manner, while taking into consideration respected national circumstances, capabilities, and priorities,” added Arifin.

At the moment, energy security is just as important as energy transition. For this reason, Arifin said this year’s Indonesia Chairmanship of ASEAN addresses the importance of sustainable energy security through interconnectivity in ASEAN, the so-called “epicentrum of growth”.

On the same occasion, Arifin pointed out that platforms such as the Trans-ASEAN Gas Pipeline (TAGP) and the ASEAN Power Grid will accelerate the clean energy transition and improve energy security. Arifin also emphasized that critical minerals are needed to support energy transition.

For the record, critical raw materials or minerals are minerals that can be used in clean and renewable energy-based technological innovations. The global demands for critical minerals in the development of clean energy technologies are increasing significantly.

According to International Energy Agency (IEA), an electric car needs mineral inputs six times higher than a conventional car, while a wind power plant requires mineral resources 13 times more than a natural gas-fired power plant of a similar size.

“Noting that several ASEAN countries such as Indonesia, Malaysia, Myanmar, Philippines and Vietnam are endowed by large amounts of mineral resources among others nickel, tin, bauxite and rare earth elements, ASEAN could play a great role in the global supply chain of critical minerals,” Arifin noted.

The minister added that there is a need to develop mineral processing and refining units as well as mineral-based manufacturing industries, especially those manufacturing clean energy technologies. Arifin named Malaysia, Vietnam, Thailand, and Indonesia as key players in renewable energy manufacturing industries such as battery, solar PV, and electric vehicles.

“The 2023 ASEAN Summit agreed on electric vehicle use to reduce greenhouse gas emissions and decarbonize the land transportation sector in the region in order to achieve Net Zero Emissions (NZE),” commented Arifin.

He stated that ASEAN states are committed to developing a regional ecosystem of electric vehicles with the involvement of all ASEAN Member States and upscaling the electric vehicle industries to make ASEAN the center of global production.

Arifin highlighted that technology is the key to the transition to carbon neutrality; for this reason, there is a need to expand the widest variety of technologies. In addition, the use of technologies should be made more inclusive, while access to affordable technologies and financing must be explored more thoroughly.

“ASEAN member states should upgrade the technologies as well as new skills, capacities, and expertise to support our country’s respective energy transitions target as well as ASEAN Plan of Action of Energy Cooperation (APAEC) target,” Ujar Arifin.

Arifin also expressed his appreciation to the ASEAN Member States for their commitments to meet the Net Zero Emission (NZE) target in the next few years. The commitment will serve as a foundation for the global NZE roadmap.

“Such a roadmap is significant as our tools to analyse and allocate the support needed for each country, such as the need of technology, finance, infrastructure, and many others,” stated Arifin.

Arifin expected ASEAN Member States will use the 41st ASEAN SOME to further discuss and settle current strategic issues, such as carbon trade and decarbonization of the oil and gas industry through CCS/CCUS.

“This will accelerate greener shares of energy supply in ensuring long-term energy security in the ASEAN region to meet the NZE target. In the midterm, we also need to realize our commitment to achieve the Nationally Determined Contributions (NDC) target by 2030 according to the greenhouse gas emission reduction targets of each ASEAN country,” said Arifin.

On this occasion, apart from appreciating all ASEAN Member States (AMS), Dialogue Partners and International Organizations for their continuous support and cooperation in the implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC), Arifin also welcomed Timor Leste as the newest family in ASEAN, particularly in the Forty-First SOME, to observe the progress and implementation of energy cooperation in ASEAN.

“I hope that ASEAN could further involve Timor Leste in our next meetings and activities,” stated Arifin.

The 41st ASEAN SOME will be held from 19 June to 23 June 2023 in Jakarta. Indonesia acts as the host country and Chair of the event. As many as 10 ASEAN Member States, 8 dialogue partners, and a number of international organizations participate in the meeting to support ASEAN energy cooperation.