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  • Author: Stephen Naimoli, Jane Nakano
  • Publication Date: 06-2018
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: This report provides a summary of the discussion from a CSIS roundtable held on April 13, 2018, as part of the CSIS-Pertamina Energy Initiative. The discussion brought together government, industry, and policy experts to explore the outlook for the region’s energy mix out to 2040, the state of renewable energy in Southeast Asia, and its role in the region’s energy priorities. This was the first in a series of events that will be convened this year to examine the role of renewable energy in Southeast Asia and its security, economic, and political importance in the Indo-Pacific. Southeast Asia is one of the fastest-growing regions in the world. The region’s gross domestic product (GDP) grew 66 percent from 2006 to 2015, and if all 10 countries were one economy, it would be the seventh-largest in the world. This growth is projected to increase, averaging just over 5 percent annually from 2018 to 2022. With economic growth comes demand for energy. From 2000 to 2016, economic growth in Southeast Asia drove a 70 percent increase in primary energy demand. Governments in Southeast Asia have implemented a range of policies and incentives to ensure they meet their energy demand. Renewable energy (wind, solar, geothermal, and sometimes hydro and biomass) is capturing an increasing, although not dominant, amount of attention from policymakers, investors, and the private sector as an important part of meeting this demand. Renewable energy’s share of the electric power mix is driven by a range of factors—the economics of power generation, efforts to reduce greenhouse gas emissions, energy security concerns, and concerns over local air pollution. While renewable energy is set to grow as a share of the region’s energy mix, there are indications that its potential contribution is much higher than is currently on track to be realized. Renewable energy increasingly competes on an economic basis in many countries against all fuels except coal, but sometimes political and socioeconomic factors stand in the way of improving their competitiveness in specific markets. The region is also attracting a great deal of outside investor interest. Countries from around the region and ever farther afield are investing in Southeast Asia’s energy sector because of the rapid growth experienced over the last decade and half, and their investment priorities, along with economics, shape their investment decisions in Southeast Asia. Energy policy and investment decisions are also being driven by the shifting nature of supply-and-demand balances in each country and the shifting domestic realities that come from becoming a net importer of specific fuels, such as in Indonesia. Many Southeast Asian countries have integrated low- or zero-carbon renewable energy into their energy planning efforts, and this report examines the dynamics of the power sector in Southeast Asia and how renewable energy competes with fossil fuel sources of electricity.
  • Topic: Security, Energy Policy, Oil, Governance, Gas, Electricity, Renewable Energy, Industry
  • Political Geography: Indonesia, Asia, Southeast Asia, Indo-Pacific
  • Author: Brian Harding, Andreyka Natalegawa
  • Publication Date: 07-2018
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The United States and Indonesia are natural partners. Despite our geographic distance, we have striking similarities. We are large, diverse, and democratic societies. We both seek an international order in the Indo-Pacific region based on rules that enable all countries to have a voice. Our shores each span two oceans, imbuing our countries with a deep maritime heritage and culture that shapes how we approach the world. When each plays its natural role as a leader in regional affairs, both parties benefit. In recognition of the great mutual benefit that a close U.S.-Indonesia partnership could bring, Presidents Barack Obama and Susilo Bambang Yudhoyono launched a comprehensive partnership in 2010 to build closer government-government, economic, and people-people ties between our two countries. Critically, the agreement created a framework for collaboration across a multitude of government departments and ministries under a joint commission co-chaired by the U.S. secretary of state and the Indonesian minister of foreign affairs. In 2016, under President Joko Widodo (Jokowi), the comprehensive partnership was elevated into a strategic partnership, further signaling the relationship’s importance to both countries. Yet despite having many common interests and recent high-level efforts to push the relationship forward, U.S.-Indonesia relations are not meeting their potential. Bilateral economic interaction is limited compared to the size of our economies. Official interaction is often bureaucratic and rarely strategic. And people-people relations, including of education exchanges, are minuscule considering that Indonesia and the United States are the third- and fourth-most-populated countries in the world. President Donald Trump’s political ascent has also created additional headwinds for U.S.-Indonesia relations. Candidate-Trump’s statements regarding the Muslim world caused unease in Indonesia and his policies as president toward Israel and Palestine have damaged Indonesian views of the United States. In Asia, the Trump administration’s framing of great-power competition with China and the administration’s nontraditional economic statecraft have created uncertainty in Jakarta. From Washington’s perspective, the Jokowi administration’s relative disinterest in playing a leading role in the Association of Southeast Asian Nations (ASEAN) and in the broader Indo-Pacific region has dampened enthusiasm in some quarters for investing in the relationship. Recognizing the importance of both the U.S.-Indonesia relationship and its continued underperformance, on May 3, 2018, the CSIS Southeast Asia Program convened a first annual bilateral, track 1.5 strategic dialogue in Washington, D.C., to inject new momentum into the relationship and to begin building deeper connectivity between policy experts in the two countries. This report outlines conclusions and recommendations that surfaced during the dialogue. However, the report reflects the opinions of the authors, and does not necessarily reflect those of the dialogue participants.
  • Topic: International Cooperation, Culture, Maritime, Economic Cooperation
  • Political Geography: United States, Indonesia, North America, Indo-Pacific
  • Author: Prashanth Parameswaran
  • Publication Date: 09-2014
  • Content Type: Journal Article
  • Journal: The Washington Quarterly
  • Institution: Center for Strategic and International Studies
  • Abstract: On October 20, 2014, Indonesia—the world's fourth - largest nation, third - largest democracy, and largest Muslim - majority country—after a decade of stable leadership under Susilo Bambang Yudhoyono, inaugurated former Jakarta governor Joko Widodo as its new president. Jokowi, as he is popularly known in Indonesia, will face the daunting task of addressing the country's myriad domestic problems, while also maintaining its role abroad as a regional leader in Southeast Asia as well as a global player in important international fora like the G20 and the United Nations. Indonesian foreign policy will likely display significant continuity with the Yudhoyono years. But in translating Indonesia's foreign policy aspirations into reality, Jokowi will confront major challenges ranging from nagging resource constraints at home to incomplete political transitions and rising nationalism among Indonesia's neighbors abroad. These challenges have profound implications for U.S. policy toward Indonesia, given the closer ties between the two countries over the past few years. U.S. policymakers should factor in these realities as they fashion next steps for U.S.-Indonesia relations.
  • Topic: Foreign Policy
  • Political Geography: Indonesia, United Nations
  • Author: Robert Sutter, Chin-hao Huang
  • Publication Date: 10-2013
  • Content Type: Journal Article
  • Journal: Comparative Connections
  • Institution: Center for Strategic and International Studies
  • Abstract: China's tough stand on maritime territorial disputes evident first in 2012 confrontations with the Philippines in the South China Sea and Japan in the East China Sea has endured into 2013. Leaders' statements, supporting commentary, military and paramilitary activity, economic developments, and administrative advances all point to determined support of an important shift in China's foreign policy with serious implications for China's neighbors and concerned powers, including the US. China's success in advancing its control of disputed areas in the South China Sea and its overall assertiveness in support of China's broad territorial claims along its maritime rim head the list of reasons why the new Chinese policy is likely to continue and intensify. Few governments are prepared to resist.
  • Topic: Foreign Policy
  • Political Geography: China, Indonesia, Asia
  • Author: Murray Hiebert, Gregory B. Poling, Ted Osius
  • Publication Date: 09-2013
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The U.S.- Indonesia relationship is critical to the national interests of both nations, and will only grow more so in the years to come. The catch words are now well- known. Indonesia is the world's fourth largest country and third largest democracy. It is the largest Muslim- majority nation, one of the most pluralistic societies on the planet. Its political system provides proof that democratic norms and values are not dependent on culture, history, or religion.
  • Topic: Foreign Policy, Development, Diplomacy, Economics, Science and Technology, Bilateral Relations, Foreign Aid
  • Political Geography: United States, Indonesia, Southeast Asia
  • Author: Leszek Buszynski
  • Publication Date: 03-2012
  • Content Type: Journal Article
  • Journal: The Washington Quarterly
  • Institution: Center for Strategic and International Studies
  • Abstract: The risk of conflict escalating from relatively minor events has increased in the South China Sea over the past two years with disputes now less open to negotiation or resolution. Originally, the disputes arose after World War II when the littoral states—China and three countries of the Association of Southeast Asian Nations (ASEAN), Indonesia, Malaysia, and the Philippines, as well as Vietnam which joined later—scrambled to occupy the islands there. Had the issue remained strictly a territorial one, it could have been resolved through Chinese efforts to reach out to ASEAN and forge stronger ties with the region.
  • Political Geography: United States, China, Indonesia, Malaysia, Philippines, Island
  • Author: Murray Hiebert, Ernest Z. Bower, David Pumphrey, Gregory B. Poling, Molly A. Walton
  • Publication Date: 12-2012
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: Southeast Asia will be the next big growth engine in Asia. Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, with a population of 525 million and a combined GDP of $2.8 trillion (when measured by purchasing power parity), are expected to grow almost 6 percent between now and 2030, according to the Asian Development Bank. For years, they have been eclipsed by China and India, but now their combined GDP is catching up with India and they could overtake Japan in less than two decades. For U.S. firms, these five members of the Association of South East Asian Nations—hereafter the ASEAN-5—are a trade, energy, and environment story.
  • Topic: Development, Economics, Energy Policy, International Trade and Finance, Oil
  • Political Geography: Indonesia, Malaysia, Asia, Vietnam, Philippines, Thailand, Southeast Asia
  • Author: Sheldon W. Simon
  • Publication Date: 01-2011
  • Content Type: Journal Article
  • Journal: Comparative Connections
  • Institution: Center for Strategic and International Studies
  • Abstract: High -level visits to Southeast Asia this quarter found President Obama in Indonesia to inaugurate a Comprehensive Partnership, Secretary of Defense Gates in Malaysia and Vietnam, and Secretary of State Clinton in several Southeast Asian states, a trip that was highlighted by her acceptance of US membership in the East Asian Summit and attendance at the Lower Mekong Initiative meeting. Obama praised Jakarta‟s democratic politics and insisted that the multifaceted relations with Jakarta demonstrate that Washington is concerned with much more than counterterrorism in its relations with the Muslim world. In Vietnam, both Clinton and Gates reiterated the US position from the July ASEAN Regional Forum that the South China Sea disputes be resolved peacefully through multilateral diplomacy led by ASEAN. Clinton expressed Washington‟s appreciation that China had entered discussions with ASEAN on formalizing a Code of Conduct on the South China Sea. In all her Southeast Asian stops, she e mphasized the importance of human rights. While deploring the faulty election in Burma, the US welcomed Aung San Suu Kyi‟s release from house arrest and the prospect for more openness in Burmese politics.
  • Political Geography: United States, Indonesia, Southeast Asia
  • Author: Sheldon W. Simon
  • Publication Date: 04-2011
  • Content Type: Journal Article
  • Journal: Comparative Connections
  • Institution: Center for Strategic and International Studies
  • Abstract: Both the US and ASEAN expressed dismay at border skirmishes between Thailand and Cambodia around the Preah Vihear temple and two other ancient temples about 160 km to the west. Artillery exchanges and small arms fire call into question the two countries' commitment to the ASEAN rule of the peaceful settlement of disputes among its members. Washington has promised to aid Philippine maritime capabilities to patrol both its South China and Sulu Seas' territorial waters as part of a larger US goal of keeping Asian sea lanes open. New ships and radar installations as well as navy and coast guard training are being provided by the US. In Indonesia, the US embassy inaugurated a new public diplomacy program, @america, an interactive information technology site designed to demonstrate the breadth of American life to Indonesia's tech-savvy young people. Wikileaks releases of US embassy cables published in the Australian press critical of President Yudhoyono caused some tension between Jakarta and Washington. As the current ASEAN chair, Indonesia seemed to follow Secretary of State Clinton's call for an ASEAN role in resolving the South China Sea islands dispute. US relations with Vietnam and Cambodia continue to be strained over human rights concerns. While ASEAN has called for the lifting of economic sanctions on Burma since its recent national election and the release of Aung San Suu Kyi from house arrest, Washington seems in no hurry to follow suit, labeling the election as fatally flawed and noting that political prisoners remain in jail. Finally, the US promised high-level participation in ASEAN-led regional organizations, including the ARF, the ADMM+, APEC, and the EAS.
  • Topic: Security, Human Rights
  • Political Geography: United States, Washington, Indonesia, Vietnam, Philippines, Cambodia, Thailand, South China
  • Author: Sheldon W. Simon
  • Publication Date: 09-2011
  • Content Type: Journal Article
  • Journal: Comparative Connections
  • Institution: Center for Strategic and International Studies
  • Abstract: Diplomacy related to the South China Sea disputes dominated US actions at the May ASEAN Summit, the June Shangri-La Dialogue, and the July ARF meeting. Washington endorsed ASEAN consultations before the Association's meetings with China on the territorial disputes as well as an independent ASEAN role in the South China Sea negotiations separate from the bilateral negotiations preferred by the PRC. Related to US support for ASEAN is Washington's assistance to the Philippines in gradually building its archipelagic security capability by funding Coast Watch South radars and promising more military hardware to the ill-equipped and underfunded Philippine armed forces. Manila also maintained its efforts to obtain a specific defense commitment from the US in the event of a military conflict with China over South China Sea islands. The Cambodia-Thai border dispute continues to flare periodically. ASEAN mediation efforts have established a timetable for military disengagement but, as yet, no implementation. Washington has endorsed the ASEAN efforts. In Indonesia, radical Jemaah Islamiyah, al Qaeda-affiliated cleric Abu Bakar Bashir was sentenced to 15 years in jail for aiding the formation of a new terrorist affiliate in Aceh. As in his previous trials, Bashir blamed his arrest and sentence on US and Jewish machinations. Although the Obama administration has appointed a new envoy, Derek Mitchell, as special ambassador to coordinate international approaches to Burma, this enhanced engagement runs parallel to increased US economic sanctions, suggesting little has changed with the new “civilianized” government.
  • Topic: Diplomacy
  • Political Geography: United States, Indonesia, Philippines, Burma, Cambodia, Thailand, South China
  • Author: Sheldon W. Simon
  • Publication Date: 09-2011
  • Content Type: Journal Article
  • Journal: Comparative Connections
  • Institution: Center for Strategic and International Studies
  • Abstract: With visits to Hawaii, Indonesia, Australia, the Philippines, and Burma, President Obama and Secretaries Clinton and Panetta demonstrated a renewed US commitment to Southeast Asia despite concern over a projected steep decline in the US defense budget. Southeast Asian reactions to the announcement of an increased rotation of US military assets to Australia range from ambivalence in Indonesia to enthusiastic endorsement in the Philippines and Singapore. Generally, the additional US forces are seen as evidence of Washington's decision to remain involved in regional security. At the East Asia Summit (EAS), Obama outlined his hope that it could serve as a high-level security conclave whose agreements would be implemented through other multilateral organizations. In visits to the Philippines and Indonesia, Clinton and Obama promised naval and air force upgrades to each, including two squadrons (24 aircraft) of refurbished F-16C/Ds for Jakarta. Hoping for a breakthrough in US-Burma relations, Obama sent Clinton to see whether the situation warranted the easing of US economic sanctions and if Naypyidaw was moving to meet US conditions for the restoration of full diplomatic relations.
  • Political Geography: United States, Washington, Indonesia, Philippines, Australia, Singapore, Southeast Asia, Hawaii