asean coal trends: challenges and oppor tuni ties on facing asean economi c communi ty (aec)
TRANSCRIPT
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) i
ASEAN Coal Trend Challenges and Opportunities on Facing
ASEAN Economic Community (AEC)
Asra Virgianita, Ph.D
Santi Hapsari Paramitham, S.Sos
Meliana Lumbantoruan, M.A
ii
ASEAN Coal Trend :
Challenges and Oppor tuni ties on Facing ASEAN Economi c Communi ty (AEC)
ISBN : 978-602-72039-2-1
Writer
Asra Virgianita,Ph.D.
Lecturer, Department of International Relations,
Faculty of Social and Poli tical Sciences, University of Indonesia
Santi Hapsari Paramitham,S.Sos.
Paperer, ASEAN Study Centre,
Faculty of Social and Poli tical Sciences, University of Indonesia
Meliana Lumbantoruan,M.A.
Research and Knowledge Manager, Publish What You Pay Indonesia
Reviewer
Maryati Abdullah
National Coordin ator, Publish What You Pay Indonesia
Jensi Sartin
Program Development Manager, Publish What You Pay Indonesia
All Right Reserved
First Edition, 2015
This paper was publi shed by Yayasan Transparasi Sumberdaya Ekstraktif-Publish What You Pay
Indonesia, with suppor ted by Natural Resources Governance Institute and United State Agency
for International Development (USAID). The contents are the responsibili ty of Publish What
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Contents
Abstract ............................................................................................................. 3
Introduction ................................................................................................... 4
Coal Trade Pattern and Global Value Chain: An Overview ....................................... 6
ASEAN Economi c Communi ty: The Way towards Integration ............................. 10
Coal Trends and the Readines of ASEAN Coun tries on Facing the AEC ................ 12
Coal Prospects in ASEAN Region .................................................................... 12
ASEAN Energy Policy ...................................................................................... 14
ASEAN Coun tries Strategy ........................................................................... 16
Clean and Eff icient Coal use in ASEAN: The Economi c Benefit ....................... 17
Challenges and Oppor tuni ties of Coal Sector on Facing AEC ................................ 19
Closing ............................................................................................................ 22
Bibliogr aphy ........................................................................................................ 23
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) iii
iv
A
Abstract
SEAN energy consump tion is forecasted to rise because of the
signi ficant gro wt h of economy and popul ation in the region. Coal
use continuou sly increase as a replacement for oil and natural gas.
ASEAN plays signi ficant roles in coal consump tion and produ ction in Asia
Pacific. Using the value chain approach, it is projected that coal produ cer
coun tries in ASEAN will have the chance to maximize the market through
bilateral trade or AEC framework. The AEC can foster market integration
in ASEAN, build s awareness of ASEAN coun tries to develop their
infrastructure in energy suff iciency, as well as develops clean coal
technolog y. Coal produ ction in ASEAN will still leant on Indonesia as the
main expor ter in ASEAN. Energy policy of each coun try in ASEAN has a lot
of things in common , which provides the space of building further regional
coooperation in managing energy features. The future of coal sector in
ASEAN will highl y depends on advancement of technolog y, impro vement
of governance, effeciency of transpor tation, and connectivity between
the coun tries. Strengthening cooperation and coordin ation must be a key
strategy for ASEAN coun tries to ensure readiness in facing AEC.
Keywords: Coal, ASEAN, AEC, energy, value chain, governance
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 1
E
Introduction
conomi c gro wt h and industrial activity
are the tw o strongl y related aspects. In
the era of global and regional market,
coun tries are expected to be competitive to
survive the flow of foreign commodi ties, as
well as compete their domestic commodi ties
into foreign market. This condi tion requires
high quality of infrastructure, including the
technolog y, transpor tation, electricity, and
energy suppli es. Adequate energy suppli es
ensure sustainabili ty of energy consump tion
for transpor tation, electricity, and
technolog y.
Use of coal is continualy rising for produ cing
electricity. Even, coal is forcasted to replace
the use of oil and natural gas due to its
abundance and aff ordabili ty. With its
cheaper price, coal comes out as a ― new
favourable option of energy source‖ in
fulfilling energy demands. This is suppor ted
by volatili ty of oil price, scarcity of world’ s oil
reserves which upli ft s necessity to seek
alternative energy resources such as coal.
Data in figure one shows a general increasing
number of world’ s coal consump tion and
produ ction, which Asia-Pacific region
contribu tes a qui te signi ficant amoun t. This
contribu tion shows a likelihood of gro wt h of
coal produ ction and consump tion in the
regional and global level. In the trading
context, Indonesia listed as the biggest coal
expor t coun try in the world (around 46% of
the world’ s total coal trade), while China is
Figure 1. Coal Production and Consumption by Region
Source: British Petroleum (BP) Statistical Review 2014 of World Energy 2014,
accessed on December 21st 2014, through http://ww w.bp.com/en/glo bal/
corpo rate/about-bp/energy-econom ics/statistical-review-of-worl d-energy/
review-by-energy-type/coal/coal-consumption.html
Coal production/consum ption by region Million tonnes ooil equivalent
Production by region Consump tion by region
Asia Pacific 4000 4000
Africa Middle East
Europe & Eurasia
S & Cent. America
North America
3500 3500
3000 3000
2500 2500
2000 2000
1500 1500
1000 1000
500 500
0 0
88 93 98 03 08 13 88 93 98 03 08 13
BP Statistical Review of World Energy 2014
© BP 2014
6
the coun try with the highest consump tion of
coal in the world.1
According to figure 1, coal has an abundant
resource and has the securi ty aspects in its
supply. World Energy Outlook predicts that
the global coal demand will gro w by 15% in
2040. The coal main produ cers are China,
India, Indonesia, and Australia. In Asia Pacific,
ASEAN plays signi ficant roles in coal
consump tion and produ ction. Nowadays, in
ASEAN coun tries, with the implementation of
AEC-which will be in place in 2015-, the
economi c gro wt h will stimulates industrial
activities. Then this stimulu s will affects
ASEAN energy consump tion. Furthermore,
ASEAN energy consump tion is forecasted to
rise continously because of the signi ficant
gro wt h of economy and popul ation. These
trajectory will place ASEAN as a key player in
global energy system for now and the
future.2 Although , ASEAN has plenty of
natural resources, ASEAN coun tries are still
relying on energy impor ts. Also, each coun try
individually have different pattern of energy
use.
This paper aims to look on challenges and
oppor tuni ties of coal sector on facing AEC.
This paper will use value chain approach,
good governance, ASEAN framework and
cooperation which is strengh tened through
each coun tries member strategies.
1 BP Statictical Review of World Energy 2014, accessed on
December 21st, 2014 through http://ww w.bp.com/en/
glo bal/corpo rate/about-bp/energy-econom ics/statistical-
review-of- worl d-energy/review-by-energy-type/coal/
coal-consumption.html
2 Maria van der Hoeven, Southeast Asia Energy Outlook,
accessed on December 20th 2014 through htt p://www .
iea. org / publi cat ion s/ f reepubli cat ion s/ publi cat ion /
southeastasiaenergyoutlook_weo2013specialrepor t.pdf
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 3
V
Coal Trade Pattern and Global Value Chain:
An Overview
alue chain explains set of activities of different produ ction
phases, including the combin ation of physical
transformation and service inpu t from produ cers, the
process of delivering the produ ct to the consumers, and the waste
of using.3 Value chain puts attention to the dynamics of inter-
linkages between produ ction activities which takes further to the
traditional modes of economi cs and social analysis. Moreover, the
full value of a produ ct is regulated in this value chain.
In the case of coal, value chain can be illu strated through the set of
activities of preparation, exploration, management and logistic,
marketing, upgrading and investment. From this set of activities,
exploration, produ ction, management (including governance) and
logistic are the key elements in assuring the value of coal. Next are
marketing, investment, and guarantee towards the sustainable
development of coal and mining usage. This process describes that
investment for the infrastructure impro vement, including rail and
por ts are crucial to deliver and distribu te the end-produ cts. The
simple value chain is shown at Figure 2.
Thus, it is impor tant to determine pattern of current coal trade in
regard to the value chain. It is found that there is no signi ficant
change in the pattern of trade, both in expor ts and impor ts. The
steam coal expor ts is more favourable, compared to cooking and
ligni te. However, the coun tries which produ ce steam coal are still
limi ted.
Figure 2. Value Chain of Coal
Source: Modi fied from various sources
3 Raphael Kaplinsky and Mike Morris, A Handbook for Value Chain Paper, 4.
• Host Coun try:
ASEAN Coun
tries
Preparation: Infrastructure,
Policy,
technolog y
Exploration and
Development
of Product
• Direct Use
• Conversion
• High Quality of
Coal and Mining
(Upgrading)
Management/ Governance
and Logistic
Marketing Investing
• Ensuring Revenue
Transparancy
• Energy Securi ty
• Transpor tation/
delivery/distribu tion
• Intra Trade
ASEAN (based on
AEC)
• Outside ASEAN/
Global Market
• CCTs
• Energy Eff iciency
• Sustainable
development
4
Furthermore, the global steam coal trade
value in 2013, was abou t 1028 Mt, which
pattern of trade is led by the expor ts of coal
steam produ ct from Indonesia (432 Mt),
Australia (182 Mt) and Russia (118 Mt).4 At
the same time, the biggest impor ters come
from China, Japan, India, South Korea,
Chinese Taipei, and Germany. This proves
that the coal trade center is currently heading
to Asia. In 2013, China produ ced 3034 Mt of
coal which assembled it to the 1st position of
coal produ cer coun try, above US (756 Mt),
India (486 Mt), and Indonesia (486 Mt). This
condi tion puts an interesting fact that China
takes both roles as the biggest coal impor ter
Indonesia leads the pattern of coal trade.
Indonesian coal is mostly expor ted to
Philippin es, Myanmar, and Singapore. The
detail of coal and mining trade intra ASEAN is
described in the table 2
The data in the table 2, shows that coal and
mining trade intra ASEAN is potential to be
explored. Producer coun tries will have the
chance to maximize the intra ASEAN market
through bilateral trade or AEC framework.
For instance, Thailand is repor ted to produ ce
approximately 1,372 Million Ton coal per year
(2009). However, the produ ced coal is
categorized as ligni te to sub bituminou s coal,
as well as the biggest coal produ cer. which is a low quality coal.5 This situation
Meanwhile, in ASEAN, Indonesia has the
largest coal reserves with 22,5 billion tonnes,
follo wed by Vietnam with 3.4 billion tonnes
and Thailand with 1,1 billion tonnes.
However, in term of coal resources, Vietnam
ranks first with 203.4 billion tonnes, while
Indonesia has only 92,3 billion tonnes.
opens the oppor tuni ty for trading with other
ASEAN coun tries to get the expected coal
quality. In addi tion, coal trade becomes
potentially beneficial in intra ASEAN, because
they are in the same phase on enhancing
their industrial capacity on facing AEC.
Tabel 1 Coal Reserve and Resources by Country and Type, 2011 (billion tonnes)
Hard Coal Brown Coal Total
Reserves Resources Reserves Resources Reserves Resources
Indonesia 13.5 73.3 9 19 22.5 92.3
Vietnam 3.1 3.5 0.2 199.9 1.4 203.4
rest of ASEAN 0.4 2.4 1.7 2.2 2.1 4
Total ASEAN 17 79.2 11 221.1 27.9 300.3
Share of the World 2.30% 0.50% 3.90% 5.30% 2.70% 1.40%
Source: Table is adop ted from Maria van der Hoeven, Southeast Asia Energy Outlook, accessed
on December 20, 2014 through http://ww w.iea.org/publ ications/freepubl ications/publ ication/
southeastasiaenergyoutloo k_weo2013specialreport.pdf
Although , the usage in domestic level is still
low due to the high dependency on gas and
oil supply, in the context of trading in ASEAN,
4 World Coal Association, “Coal Fact 2014”, International
Energy Agency , Coal Information 2014, BP Statistical
Review of World Energy 2014.
5 Viroj Sivavong , Electricity Generating Authority
Thailand, Coal Demand/Supply Outlook in Thailand,
2009, 2, accessed on November 10th 2014 through htt p://
www.kier.re.kr/upload/2009APEC-EGCFE/%28Session3-
B%29Coal%20Demand-Suppl y%20Outlook %20in %20
Thailand.pdf
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 5
Table 2 Export-Import on Mine & Coal Intra ASEAN 2013 (in USD)
Country Brunei
Darussalam
Cambodi a
Indonesia
Lao PDR
Malaysia
Myanmar
Phillippin es
Singapore
Thailand
Vietnam
Brunei Mining 531.195.045 370.727.641 - 73.860.279 378.122.631 466.747.623 593.266.643
Coal Cambodia Mining 522.537 1.184 16 1.004 749.477 2.673.466 42.336.525
Coal 19.006.068 1.246.633.530 - 802.148.711 28.934.970 962.556.934 117.701.068
Indonesia Mining 10.946.750 22.177.064 15.434 5.279.104.587 84.376.438 1.609.142.244 6.788.530.765 2.303.483.460 368.384.679
Coal 21.511.813 1.136.928.627 1.546.249 1.007.207.109 19.608.561.066 834.864.654 130.606.674 755.000
Lao PDR Mining 3.122.743 733.697 - - 704.231.954 102.806.500
Coal - - - 497.580 16.497.799 876.926 Malaysia Mining 249.025.497 10.399.660 4.837.167.607 153.689 226.842.937 461.976.182 10.650.869.362 2.800.851.009 751.037.765
Coal 173.109 504.999 - 25.945.558 5.518.537 Myanmar Mining 15.136.482 - 733.482 727.253 117.896.275 3.765.764.484 49.120
Coal - - 799.200 Philippin es Mining 1.412.272 183.223 189.796.451 5.141 303.945.904 1.521.561 444.319.340 178.005.850 32.408.726
Coal 2.362 13.201.200 66.278.084 31.747 361.236 2.262.000 16.794.594 263.395.991 89.653.832
Singapore Mining 103.048.201 580.590.615 15.955.904.738 104.223 20.418.909.369 780.488.527 1.140.933.034 1.086.288.936 2.559.611.766
Coal 3.506 264.704 206.286 112.869 32.933 Thailand Mining 21.037.629 997.766.847 979.352.633 1.345.661.415 2.702.160.901 740.171.772 671.166.580 3.856.884.031 973.621.382
Coal 1.742 81.497 6.684 474.358 232.001 14.062 21.961 Vietnam Mining 621.687 1.363.956.350 464.294.156 244.760.576 1.231.615.244 66.125.090 239.662.441 383.614.651 460.642.517 Coal 750 4.147.504 10.963.990 23.836.954 12.326.804 835.221.845 16.160.492
Source : ASEAN Stats Database based on the ASEAN coun tries’ repor t, accessed by request to the ASEAN
Stats Database Off icer in 2014
Nevertheless, several ASEAN coun tries only place coal as minor
commodi ty on their whole intra ASEAN expor t. Reserving the coal
for their own purpo se is the essential factor of their acts, because
they already have high domestic energy demands for industries and
electricity, such as Laos and Vietnam. That’s why then some other
coun tries with limi ted coal resource needs to impor t from other
coun tries, while based on its proximi ty, neighbouring impor ter
from ASEAN is an att ractive option. Malaysia is one sample of coal
produ cer in ASEAN which produ ces coal, but still needs coal supply
from impor ts. It happens since Malaysia can only produ ce 1 million
tons per year, while its coal demand is abou t 30 million tons per
year.6 Thus, Malaysia should impor ts coal from ASEAN coun tries,
especially from Indonesia which is now recognized as reliable
source of Malaysian primary energy.7
6 IEA Clean Coal Centre, htt p://www .iea-coal.org/documents/82373/7605/Prospects-for-
coal-and-clean-coal-technologi es-in-Malaysia-%28CCC/171%29
7 Ibid.
6
Table 3. ASEAN Mine and Coal Trade 2010 – 2013 (USD)8
Year 2010 2011 2012 2013
Coun try E I E I E I E I
Brunei Darussalam 818.450.727 287.302.215 1.429.178.511 413.557.339 1.248.681.128 551.270.625 2.413.919.861 407.612.209
Cambodi a 6.477.649 1.736.181.566 1.272.968 2.532.482.403 4.999.898 2.747.191.945 3.223.265.489 2.992.941.773
Indonesia 15.622.651.672 18.544.618.722 15.317.893.317 20.552.598.175 21.621.354.440 21.328.473.993 39.208.142.614 23.073.252.218
Lao PDR 889.808.661 863.559.029 712.239.553 1.129.360.367 620.958.285 1.445.296.146 8.282.767.199 2.752.178.450
Malaysia 12.729.699.087 22.158.194.175 14.535.309.602 28.935.047.677 17.728.160.664 31.122.993.454 20.020.465.911 31.556.817.894
Myanmar 2.963.400.096 2.008.252.380 2.945.464.591 1.001.307.797 2.268.839.598 1.358.840.844 3.901.106.297 2.921.336.316
Phillippin es 972.203.554 5.476.287.895 1.298.606.006 5.276.410.303 828.685.216 5.082.631.287 1.796.276.353 25.662.595.508
Singapore 36.900.984.567 15.162.277.865 44.605.001.469 16.814.626.185 44.769.653.129 23.887.909.044 42.626.499.706 23.535.038.241
Thailand 7.804.496.361 10.465.497.274 11.307.853.909 11.973.504.100 12.299.508.276 11.849.134.052 12.288.800.705 13.131.789.570
Vietnam 3.662.483.628 5.668.484.811 4.279.796.783 7.696.818.404 4.686.403.623 6.703.502.867 5.357.951.051 5.631.633.006
Source : ASEAN Stats Database based on the ASEAN
coun tries’ repor t, accessed by request to the ASEAN
Stats Database Off icer in 2014
The table 3 above explains that since 2010
until 2013, during the period when 3rd APAEC
Plan is implemented, the expor ts of coal and
mining rise signi ficantly on some ASEAN
coun tries. It further provides the evidence
that the impor t also faces some gains. This
phenomena suggest that the upcoming
ASEAN Economi c Communi ty fosters the
integrated market of ASEAN, as well as
building awareness of ASEAN coun tries to
develop their infrastructure in energy
suff iciency for electricity and industrial
activities.
The impact of ASEAN market integration
opens the door for foreign companies to
invest and conduct the coal and mining
exploration in ASEAN coun tries. In 2013, the
Government of Cambodi a repor ted that the
company which has licensed to do the
exploration activities was 91, consisted of
domestic and foreign companies.9 The
companies contribu ted in exploration in
Cambodi a were from Australia, China,
Thailand, and Vietnam.
Nevertheless, it should be noted that foreign
investment is one of impor tant factors not
only for the development of coal and mining
industry, but also for the development of
eco-friendly coal and mining industry. It
corresponds with the usage of clean coal
technolog y which also needs the investment
for the technolog y installation and other
related process. Thus, the international
cooperation has to be realized equally in
investment, technolog y, and human
resources.
8 This data is measured on follo wing kinds of resource :
Mining (iron and steel; articles of iron and steel; ores,
slag, and ash; copper and articles thereof; alumunium
and articles thereof; lead and articles thereof; zinc
and articles thereof; tin and articles thereof) and Coal
(anthracite coal not agglom erated; bituminou s coal not
agglom erated; other coal not agglom erated; briqu ettes,
ovoids, similar solid fuels from coal).
9 Chrea Vichett, Current Situation of Mining Industry in
Cambodia, General Department of Mineral Resources of
Cambodi a, 2013.
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 7
A
ASEAN Economic Community:
The Way towards Integration
SEAN Economi c Communi ty (AEC) is one of three pillars
that designed to implement the establishment of ASEAN
Communi ty by 2015. The idea of ASEAN Communi ty 2015
formation was made through the Summi t in Kuala Lumpur ,
Malaysia, in 1997 which agreed upon the ASEAN Vision 2020,
aimed to create a stable and competitive region, and balanced
economi c development. Nevertheless, during the Summi t in 2003,
ASEAN Vision 2020 was accelerated to 2015. There are tw o main
reasons why the establishment of ASEAN Communi ty is fast-
tracked. 10 First, the increasing influence and competition of China
towards the region. Second, the rise of economi c integration in
various regions in the world withou t ASEAN participation.
AEC is expected to work in cooperation with ASEAN Socio-Cultural
Communi ty and ASEAN Poli tical Securi ty Communi ty in succeeding
the ASEAN Communi ty.11 The aims of AEC itself is to achieve higher
level of economi c dynamism, sustained prosperity, inclusive
gro wt h, and integrated development of ASEAN by realizing the
increasing interdependence amidst ASEAN coun tries. Three key
characteristics of AEC are as follo w, (1) Single Market and
Production Base; (2) Competitive Economi c Region; and (3)
Equi table Economi c Development. These poin ts, highligh t the
implementation of agreement in which the signatories will be able
to trade and invest optimally with the intra region partner.
However, there are pros and cons toward the AEC. The pros often
view that AEC can stimulate the intra ASEAN trade, in which
provide the strengthening integrated market of ASEAN. On the
other hand, like every classic cons toward market integration, the
concern revolves around , the ― wide-opened door ‖ of market
which may result the tigh t competition and put the domestic
commodi ties into danger.
Despite debates on postitive and negative view towards AEC, the
suppor ts for AEC can be indicated using the AEC Scorecard
achievements. Based on AEC Scorecard data in 2011, from 277 sizes
10 Justyna Szczudlik -Tatar, ― Regionalism in East Asia: A Bumpy Road to Asia Integration,‖
Policy Paper No. 16, (2013), 3.
11 ASEAN Economi c Communi ty Blueprin t, (ASEAN Secretariat, 2008), 5, accessed on
November 20th 2014 through http://ww w.asean.org/archive/5187-10.pdf
8
of expected liberalisation, ASEAN has done
187 or abou t 67,9% of them. In 2014, that
percentage gro ws to 82,1%.12 Clearly, it
describes the common eff orts of ASEAN
coun tries in realizing ASEAN liberalization
and integration through AEC.13
The AEC implementation not only elimin ates
tariffs on trade and free flow of investment,
but also discusses the agremeent upon the
energy and mining . Exclusively in poin t B4,
the energy aspect is mentioned, as part of
AEC to-do list to promo te the infastructure
development, involving the completion of
energy and mining cooperation.14 The energy
cooperation, including the coal and mining is
regulated in AEC Blueprin t Article 53-56
which explicitly put the energy securi ty and
strengthening trade and investment in
energy as the common goals.15 Meanwhile,
the framework of trade coal and mining
trade cooperation appeares on the formation
of ASEAN Forum on Coal (AFOC) in 1999
which is a transformation of Coal Sub-Sector
Netw ork, previously buil t under the ASEAN
Energy Cooperation Program.
It is agreed that the regional energy policy
which enables the fulfillment of those goals,
is required. This is to ensure implementation
of the AEC goals as a single market and
produ ction base, a highl y competitive
economi c region, a region of equi table
economi c development, and a region fully
integrated into the global economy by 2015.
APAEC 2010-2015 mentions that the energy
policy agenda of the AEC is targeted to
acquire these follo wing ultimate objectives:16
1) to ensure a secure and reliable supply of
energy including , bio-fuel, which is crucial to
suppor t and sustain economi c and industrial
activities; 2) to expedite the development of
ASEAN Power Grid (APG) and the Trans-
ASEAN Gas Pipeline (TAGP) which allo w the
optimization of the region’ s energy resources
for greater securi ty and provide oppor tuni ties
for private sector involvement in terms of
investment, including financing and
technolog y transfer. Integrated netw orks of
electricity and gas pipelines offer signi ficant
benefits both in terms of securi ty, flexibili ty,
and quality of energy supply; 3) to ensure
sustainable energy development, through
mitigating greenhouse gas emission by means
of effective policies and measures, among
others; and 4) to strengthen renewable
energy development, such as, bio-fuels, as
well as to promo te open trade, facili tation
and cooperation in the renewable energy
sector and related industries as well as
investment in the requisite infrastructure for
renewable energy development.
12 The 12th AEC Council Meeting, August 26, 2014 accessed
on December 28th , 2014, through http://ditjenkp i.
kemendag.go.id/website_kpi/index.php?modu le=news_
detail& news_content_id=1501&detail=true
13 ASEAN Economi c Communi ty Scorecard: Charting
Progress Toward Regional Economi c Integration Phase
1 (2008-2009) and Phase II (2010-2011) accessed on
November 23rd 2014, through http://ww w10.iadb.org/
intal/intalcdi/PE/2012/10132.pdf
14 Ibid., 20
15 ASEAN Economi c Commnui ty Blueprin t, ASEAN
Secretariat, 2008. Accessed on November 23rd 2014,
through http://ww w.asean.org/archive/5187-10.pdf
16 ASEAN Plan of Action for Energy Cooperation, 2, accessed
on November 10th 2014, through http://aseanenergy.
org/media/filemanager/2012/10/11/f/i/file_1.pdf
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 9
Coal Trends and the Readines of ASEAN Countries on Facing the AEC
Coal Prospects in ASEAN Region
ASEAN can be recognized as a region with adequate energy
sources, especially in coal produ ction. Geographically, ASEAN
coun tries remains in the land inherited with coal and mining
resources. This is proven by the latest repor t which shows that
almost every coun try in ASEAN has the self-capacity to supply its
energy demands, where the government of each coun try takes the
biggest part. Like what Vietnam does by optimizing the role of
Vinacom, the state-owned enterprise, to operate the coal
extraction 100%.17 Vinacom also responsibles to control the coal
produ ction, with the aims to secure the coal reserve. In 2001-2005,
Vietnam faced a fast gro wing coal produ ction which was
considerable as a threat to domestic reserve. However, this fast
gro wt h were sucessfully managed by the authori ty of the
government for the domestic reserve reason.18
Chart 1. Percentage of Growth Averages of Primary Energy Demand in
Selected ASEAN Countries by fuel (Mtoe) 2011-2035
Source: Data are based on Maria van der Hoeven, Southeast Asia Energy Outlook,
accessed on December 20th 2014 through http://ww w.iea.org/publ ications/
freepubl ications/publ ication/southeastasiaenergyoutloo k_weo2013specialreport.pdf
17 Global Methane Ini tiative accessed on December 12, 2014 through htt ps://www .
globalmethane.org/documents/toolsres_coal_overview_ch37.pdf
18 Ibid.
60
50
40
30
20
10
Coal
Oil
Gas
Hydro
Bio Energy
Other RE 0
Indonesia Thailand Phillipin es Malaysia -10
10
In the case of Indonesia, the coal prospect is
high and predicted to sustain until 2035.19
Indonesian coal produ ction takes 85% of
produ ction in ASEAN which places Indonesia
as the biggest coal expor ter in the world. The
value of Indonesian coal resource is 120,53
Billion Ton and the reserve is 31,36 Billion
Ton, contribu tes only 6% of the world’ s total
coal reserve.20
Indonesia is also repor ted as the largest
energy consumer in ASEAN, follo wed by
Thailand and Malaysia on the second and
third place. Nonetheless, its domestic
consump tion is lower than Indonesian coal
expor t. This situation leads to the
dependency and the mul tiply oil impor t value
of Indonesia, even the whole ASEAN.
In other hand, the gro wt h averages of energy
demand including coal of four of the larger
ASEAN coun tries in 2011-2035 are very
diversified. The gro wt h of demand for coal
will occur in each coun try with percentage
around 5.5% to 3.9% (Chart 1).21 In
meantime, the highest gro wt h of demand for
oil and gas will occur in Philipin es , while for
hydro, bio-energy and other renewable
energy, Malaysia will positioned as the
coun try with the highest gro wt h of demand
for these kind of energy.
Coal prospects in ASEAN seems to be qui te
high, as electricity in ASEAN still uses coal as
the source, and electricity plays an impor tant
role not only in daily uses but also in
succeeding the industrial activities. It’s
suppor ted by the fact that though some
coun tries have the abundant resources of
coal and mining , the quality of the
commodi ties are somehow distinct from one
place to another.
The current condi tions above indicates tw o
impor tant things. First, the coal produ ction in
ASEAN will still be leant on Indonesia as the
main expor ter in ASEAN. Second, the
alternative way to use coal as the fuel of
choice gives the prospect upon the coal trade
value both intra ASEAN, and outside the
region.
19 Maria van der Hoeven, Op.Cit.
20 BP Statistical Review of Energy 2013.
21 Maria van der Hoeven, Op.Cit.
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 11
T
ASEAN Energy Policy
Strategy Action
1. Development of Energy Eff iciency
Policy and Build Capacity
1. Develop a clear policy and plan to promo te energy eff iciency.
2. Sett ing national energy eff iciency target and develop a plan to moni tor the
results.
3. Strengthen human capacity and enhance infrastructure to facili tate the EE
policy and plan.
2. Awareness raising and
dissemination of information
1. Develop and run EE&C campaigns to raise awareness, emphasizing on global
environm ental issues
2. Disseminate information using all appropri ate medias (including energy
labels) to help energy consumers make a righ t decision
3. Demonstrate best energy practices and successful cases, e.g, publi c-private
sector collaboration on EE&C
3. Promo ting good energy
management practices, especially
for industrial and commercial
sectors
1. Develop regulation and / or provide incentives to encourage good energy
management practices in facili ties
2. Build up capacity for all stakeholders to implement good energy
management
4. Facili tation of Energy Eff iciency
Financing
1. Develop mechanism (s) to enhance financing for energy eff iciency and
conservation project implementation
2. Increase involvement of banking sector and financial institutes both domestic
and international agencies in financing energy eff iciency projects
he upcoming AEC cause the economi c
gro wt h of ASEAN coun tries as the intra
ASEAN trade opens the oppor tuni ty of
all commodi ties to pass through the other
coun tries in region with no bound aries. This
economi c gro wt h is follo wed by the massive
industrial activities in ASEAN coun tries which
is undeniably increasing. In purpo se to fulfil
the market demand, the suff icient energy
sources (such as oil, coal, and gas) are
needed, so that the industrial activities are
conducted properly.
Regarding the huge energy needs, ASEAN
creates the common ini tiation for energy,
called ASEAN Centre for Energy (ACE) to
deepen the energy cooperation among
ASEAN coun tries. A factual plan of ACE is
ASEAN Plan of Action for Energy Cooperation
(APAEC). APAEC aims to achieve the energy
securi ty and the sustainable of ASEAN in
health and environm ent through the further
utilization of Clean Coal Technolog y. Not
limi ted to that, APAEC also poin ts to facili tate
the coal trade in ASEAN within the advance
regional energy securi ty. APAEC has been
done in 3 periods, which is 1999-2004, 2005-
2009, 2010-2015. The tw o latest plans are
made to accompli sh the ASEAN’s energy
needs which is forecasted to doubl e from
2005 to 2030 along with the implementation
of AEC.22
In terms of coal, the existence of APAEC is
expected to promo te coal and clean coal
technolog y, also foster the intra-ASEAN coal
trade an investment for the regional energy
securi ty. These plans are implemented
through the ownership of AFOC under the
ACE supervision as the secretariat, which
involves the off icials of Ministry of Energy
from ASEAN coun tries. Each year, AFOC holds
a meeting to receive each ASEAN coun try’s
repor t on the mining and coal reserve and
22 Ibid.
12
trade. This kind of meeting is advantageous
to picture the challenges of mining and coal
trade intra ASEAN, share abou t the energy
needs, and suspect the potential partner for
trade.
On this stage, the existence of ACE
acommod ate the grand framework for the
ASEAN coun tries, related to the aspects that
are impor tant to be done, such us the use of
clean coal technolog y and building of coal
power plant. The cooperation made under
the ACE gives the guidance for each coun try
to formul ate the national energy policy
which is harmoni zed with the regional goal.
The policy in regional level agreed in 2009 for
example, elaborates tw o impor tant aspects:
the pursue of reducing regional intensity of
at least 8% by 2015, based on 2005 level
(under Program Area No. 4 Energy Eff iciency
and Cooperation); and the eff ort to achieve a
collective target of 15% for regional
renewable energy in total power installed
capacity by 2015 (under Program Area No.6
Renewable Energy).23
The ultimate progr ams in regional level are :
buiding of an ASEAN coal image,
development of ASEAN Coal Price Index,
sett ing up coal laboratory and standards,
promo te intra ASEAN coal trade by
facili tating bilateral and mul tilateral long
term coal supply agreement, formul ater an
MOU similar to ASEAN Petroleum Securi ty
Agreement to enhance regional and securi ty
of coal supply, and developemnt of strategy/
action towards harmoni zation of local
practices to encourage coal trading and
sharing of resources and facili ties.24 These
progr ams aff irms the ASEAN attempt to build
a commi tment in undertaking energy
probl em.
23 Energy Management Policy in Indonesia and ASEAN,
presentation for Workshop for ASEAN Coal Database
and Information System 9-12 July 2012, accessed on
December 10th 2014 through http://ww w.aseanenergy.
org/media/documents/2012/08/03/f/i/file_2.pdf
24 ASEAN Plan of Action for Energy Cooperation (APAEC
2010-2015), Op.Cit.
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 13
A
ASEAN Countries Strategy
SEAN coun tries highligh t aseveral
impor tant things related to energy,
such as suff icient domestic energy
fulfillment, fair and stable energy pricing, the
exploration of sources within the terri tory,
energy eff iciency and conservation, and the
environm ental impacts. In general, it can be
said that the energy policy of each coun try in
ASEAN has a lot of things in common , which
provides the space of building further
regional coooperation in managing energy
features.
Specifically in coal aspects, intra trade coal
has been regulated in the Programme Area
No.3 through the establishment of AFOC.
Along with AEC, AFOC works to create the
guidelines of coal specifications, produ cers,
and consumers in ASEAN, as well as organise
a netw ork of coal laboratories in ASEAN to
harmoni se standards of coal analysis, to
enhance the intra trade coal.25 Nevertheless,
with regard to different capacity of coal
produ ction, each coun try in ASEAN
implements different kind of policy related to
its domestic needs and goals. The different
kind of policy is sometimes also affected by
the resource reserve and resource capacity
constraint. Coun tries with the abundant
resources of coal and mining , such as
Indonesia and Malaysia relatively trade their
coal resource with other coun tries in the
region more than coun tries which resource is
less. In addi tion, the different energy policy is
reflected on the energy trade decision. For
example, the energy policy of Laos to not
expor t its coal produ ction and reserve all
types of coal for supplying its high domestic
consump tion.
On the other hand, Singapore as the coun try
with insuff icient energi resources, is highl y
dependent to the impor t of energy. It puts
Singapore in the fragile position under the
dynamic of energy suppli es. In purpo se to
face this condi tion, one of the implemented
policy is by enhancing the enegy eff iciency
within Energy Conservation Act 2013.26 This
agenda meets the energy policy in ASEAN
which considers the eff icient and clean
energy as a crucial issue to ensure the energy
reserve and sustainabili ty in ASEAN. On the
other hand, similar with Singapore,
Philippin es also concerns abou t impro ving the
energy eff iciency consump tion. Although it’s
recorder as the second biggest geothermal
produ cer in the world, Philippin es is still
dependent on the impor t of energy. This
makes a ground for Philippin es to focus in
eff iciency energy and domestic energy access
assurance.
The different natural resources ownership
which causes to the various policies, becomes
the justification to maximize the energy
policy in ASEAN. This accompli shment foster
the energy supply and sustainabili ty, as well
the domestic energy policy of each ASEAN
coun try.
25 ― Programme Area No.3 ‖ , accessed on December 10th
2014 through ASEAN Secretariat Website http://ww w.
asean.org/news/item/prog ramme-area-no-3-coal
26 ― Singapore: Energy Eff iciency in the Industry‖, accessed
on accessed on December 23rd, 2014 through http://ww w.
sgc.org.sg/f ileadmi n/ahk_singapur/DEinternational/IR/
diffIR/Energy_Efficiency_in_the_Industry_June_2014.pdf
14
T
Clean and Efficient Coal use in ASEAN:
The Economic Benefit
he abundant resource and competitive
price of coal, put coal as the
considerable energy option. It’s
forecasted that the use of coal will steadily
rise and reach to 58% in 2035, in business as
usual scheme. On the other hand, coal is one
of the primary environm ental pollu ters. Large
number of coal requires a good arrangement
as the environm ental responsibili ty and the
eff ort in maximizing sustainable economi c
benefit. ASEAN needs to create clean and
eff icient coal technolog y which costs much
and capable human resources to operate the
technolog y optimally. With regard to coal as
a future energy alternative, it demands not
only the ASEAN coun tries interests to secure
the coal reserve, development, and
sustainabili ty, but also the contribu tion of
developed coun tries to assist the funding and
impro ving ASEAN human resources which
orientation is up to clean and coal technolog y
development.
A technolog y which is introduced to be the
solu tion upon the environ tmetal effect of
coal usage is Clean Coal Technologi es (CCTs).
According to Shi and Jacobs,
― CCTs cover technologi es ranging from the
perspectives of coal through combustion
and the clean up of waste gases to carbon
capture and storage (CCS), will reduce the
pollu tion emission intensity of coal and
make coal cleaner.‖ 27
27 Xunpeng Shi and Brett Jacobs, Clean Coal Technologies in
Developing Countries, accessed on December 23rd 2014,
through http://ww w.eastasiaforu m.org/2012/09/25/
clean-coal-technolog ies-in-developin g-countries/ Details
see also, Xunpeng Shi,China’s Attempts to Minimize non-
CO2 Emissions from Coal: Evidence of Declining
Emission Intensity, Environment and Development
Economics 16. (2011): 573-590.
They also argue that the development and
application of clean coal technologi es (CCTs)
are believed not only as the key to reconciling
the tensions between coal use and the
environm ent, but also the economi c benefit,
as they noted,
― While CCTs typically incur addi tional costs,
they can also pr ovide econom ic benefits in
addi tion to environm ental ones. For
example, Integrated coal Gasification
Combin ed Cycle power plant technolog y
can increase eff iciencies by 20–30 per cent
compared with conventional coal-fired
power plants; the captured carbon dioxide
from CCS power plants can be injected into
oil fields to increase the oil recovery rate by
4–18 per cent; and carbon storage
technologi es, such as the creation of bio-
charcoal, can impro ve soil fertili ty,
agricultural produ ctivity and water quality.
CCTs can also bring new expor t
oppor tuni ties for developing coun tries.
Upgraded low-rank coal — such as bro wn
coal in Indonesia, which has had no
previous market — may develop expor t
oppor tuni ties clean and eff icient coal
technolog y. ‖ 28
In addi tion, the World Energy Repor t 2013
explains that energy eff iciency through the
oil impor t reduction and the alternative to
coal and natural gas will provide economi c
gains to ASEAN. This will increase the ASEAN
coun tries’ impor t cost savings that eventually
contribu te to the rise of Regional GDP of
abou t 2% (chart 2). 29 The same
argumentation will also justify the necessity
of coal usage eff iciency to give the
sustainable economi c gains in the future.
28 Ibid.
29 Maria van der Hoeven, Op.Cit
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 15
Chart 2 Economic Gains on Energy Efficiency
Source: Chart is adop ted from Xunpeng Shi and Brett Jacobs, Clean Coal Technologies
in Developing Countries, accessed on December 23rd 2014, through http://ww w.
eastasiaforu m.org/2012/09/25/clean-coal-technolog ies-in-developin g-countries/
In ASEAN, the implementation of CCTs was
arranged during the Ministerial Statement
(JMS) at the 32nd ASEAN Energy Meeting
(AMEM) on September 23rd, 2014 in
Vientiane, Lao People’s Democratic Republi c.
In the attempt of CCTs implementation, the
cooperation with dialogue partners (Japan,
China, and Korea) is fostered, especially in
the technolog y development and funding .
The implementation of APAEC shows its
contribu tion to coun try’s awareness abou t
the energy reserve, like what Indonesia
experienced in 2010 to 2013. Indonesia
gained its coal reserve from 21,13 in 2010 to
31,36 Billion Ton in 2013.30 Indonesia is also
affected by the APAEC plan in realizing the
clean coal technolog y as Indonesia’s coal long
term strategy.
30 ― Coun try Repor ts Updates of Indonesia‖, Ministry of
Energy and Mineral Resources, delivered in 12th AFOC
Meeting, Thailand, 21-22 May 2014.
Gains in fossil-fuel trade balances Increase in GDP
35 200 2.5%
30 160 2.0%
25
20 120 1.5%
15 80 1.0%
10
40 0.5% 5
Coal Gas Oil
Addi tional Impor t cost expor trevenue savings
2020
Change
in GDP
2025 2030 2035
Percentage change in GDP (righ t axis)
Billio
n d
oll
ars
(20
12)
Billio
n d
oll
ars
(20
12)
16
A
Challenges and Opportunities of Coal Sector on Facing AEC
ccording to the value chain and
overview explanation above, to arrive
at the answer of prospect of coal
value chain of mining and coal trade in
ASEAN, the paper should be determined to
several factors which affected the flow of
produ ction and trade, such as the trend of
trade, the technolog y, governance,
transpor tation and connectivity, and
defini tely the ASEAN energy policy. These
factors are examined with the consideration
of upcoming ASEAN Economi c Communi ty.
First, the trend of trade. Oil used to be the
major resource consumed by the ASEAN
coun tries. However, as the reserve of oil in
ASEAN is being depleted, coal appears as
another possible resource to explore. Based
on the data of ASEAN energy outlook during
the 1999 to 2007, the coal is an energy source
that has the fastest gro wt h. The high demand
of coal is the result of the larger number of
coal-fired power plant installation all over
ASEAN coun tries. The consump tion of coal is
projected to increase approximately 7.7% per
year from 2007 to 2030, due to the power
plant installment and industries. The trend of
coal and mining is further explained by the
increasing amoun t of intra ASEAN Trade31 on
coal and mining sector in 2010 that doubl ed
in 2013 and reached more than 11 billion US
Dollar in balance.
This situation proves that the energy
consump tion in ASEAN is gett ing higher as
well as the demand of coal in the region,
when the time is gett ing closer to the AEC
implementation. It also guarantees the
continuation of value chain in terms of supply
31 Both in expor t and impor t
and demand, because while the coal and
mining are continuou sly produ ced, the
demand is coming again and again.
Second, the technolog y, governance,
transpor tation, and connectivity. This four
aspects are interlink ed to the success of
produ ction, since the value chain stresses on
the flow of produ ction, which involves the
easy access of modern technolog y and
distribu tion. The modern technolog y
development is needed by the coun tries to
cultivate the energy produ ction. The more
sophisticated the technolog y, the produ ction
will be more eff icient and resulting the high
quality. However it’s buil t widely vary across
the coun tries, as Myanmar and Cambodi a still
has limi ted access to modern technolog y
while Singapore has reached 100 percent of
access.32 This triggers some coun tries in
ASEAN, which Government and state-owned
company unable to build high-technolog y to
manufacture the coal and mining materials,
to open the oppor tuni ty for foreign
companies to explore the mining and coal
within their land under specific regulations
and permission.
Since coal is claimed as the preferable energy
source than oil for its cheaper price and
flexibili ty to be distribu ted, the probl em no
longer spins around the coal as a material.
The challenge occurs on how fast and how
easy the coal is carried from the produ cer to
the consumer, for example from Indonesia to
Cambodi a. According to the nature of market
integration, the border restraint gradually
32 Hanan Nugroho , ― ASEAN Energy Cooperation: Facts and
Challenges‖, Jakarta Post May 19th 2011, accessed on
December 11th 2014 through http://ww w.thejakartapost.
com/news/2011/05/19/asean-energy-cooperation-facts-
and-challenges.html
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 17
perishes as the AEC is appro aching , which
means the less cost for coal trade intra region.
Governance is the inseparable key element of
value chain. Regarding the attempt to build a
global and regional value chain, domestic
policy (including the added-value of coal and
mining process) becomes so essential. The
governance issue is also related to the
revenue transpor tation which is collected
from the coal and mining industry. Resources
Governance Index (RGI) which measures the
quality of governance in the oil, gas and
mining sector of 58 coun tries by looking at
four key areas of transparency and
accoun tabili ty such as institutional and legal
sett ing, repor ting practices of government
disclosure of information, the presence and
quality of checks and oversigh t mechanisms
that encourage integri ty and guard against
conflicts of interest, the broader governance
environm ent, based on more than 30 external
measures of accoun tabili ty, government
effectiveness, rule of law, corrup tion and
democracy. Chart of RGI below, showing that
most ASEAN coun tries still perforrm poorl y
on the index.33
Main finding of RGI repor t showing that
ASEAN coun tries still lack laws and
institutions that encourage integri ty and
openness, leading to poor performance, lack
effective moni toring of licensing decisions,
and poor government effectiveness, control
of corrup tion and the rule of law, and
Cambodi a, Myanmar and Vietnam publi sh
very li tt le information on resource revenues.34
From this condi tions, impor tant to push
coun tries on ensuring revenue from oil, gas
and mining sector used for society welfare.
For the future value chain, integrated
connection between each coun tries in ASEAN
needs to be realized. The realization of
integrated connection in ASEAN enhances
Chart 3: East Asia and Pacific Index scores and ranking
Source:Resources Governance index, 2013, Asia Pacific Index Revenue
Watch Institute (Coun try by coun try repor t : http://ww w.
resourcegovernance.org/rgi)
33 Resources Governance Index: A measure of transparency
and accoun tabili ty in the oil, gas and mine sector,
Revenue Watch Institute: 2013
34 Ibid
18
the eff iciency of distribu tion in ASEAN.
Singapore, with its strategic location and
modern technolog y is ideal to be placed as a
hub to connect the coal and mining trade of
the entire coun tries in region. Singapore has
been well-kno wn as a key hub for oil and
maritime commerce for a long time, as it
covers the activities of the entire valuechain
from exploration management, refinery, and
marketing and trading for energy produ cts.35
Consequently the plan will also work for the
coal and mining trade.
Third, ASEAN energy policy. The continuation
of ASEAN Centre for Energy, especially the
APAEC Plan, gives the guidance for each
coun try in ASEAN to compose the national
energy policy that meets the standard of
regional purpo se, for example the power
plant building , the agreement to reduce the
carbon emissions, and the use of clean coal
technolog y. An agenda to foster the intra-
ASEAN coal and mining trade also signs that
ASEAN is moving forward to achieve the
regional self-suff iciency. The reason why it is
impor tant, as explained previously, because
the energy self-suff iciency leads to the
gro wt h of economy and industrial activity,
which is crucial in facing the ASEAN Economi c
Communi ty. In precise, harmoni zed policy
will make unprobl ematic produ ction and
distribu tion in the region, so that each
coun try has the abili ty to expor t and impor t
the commodi ty thoroughl y, which directly
affects the fulfillment of national demand of
energy.
Closing
Besides, the proli feration of modern
technolog y is also necessary to cultivated for
the coun tries with limi ted access. It helps the
coun tries to manage and conduct the coal
and mining produ ction properly and produ ce
the high quality produ cts. With the abili ty to
reach the demand and standard of good coal
and mining those coun tries will then actively
suppor t the intra ASEAN coal and mining
trade. Addi tionally, to tackle the challenge of
coal as energy source which contribu tes to
the environm ental pollu tant, an advanced
technolog y is also required. In this context,
strengthening regional cooperation on both
intra ASEAN and ASEAN with its dialogue
partners will be an alternative to acquire a
coal and mining trade which economi cally
and environm entally advantageous.
Moreover, the readiness of ASEAN coun tries
in the face of the AEC , especially in coal and
mining trade, not only rely on domestic
strategy of each coun try , but cooperation
and coordin ation on energy issues Including
coal and mining sectors in ASEAN level should
be maximized. Potential cooperation for
development and trade of mining and coal
must also be a key strategy of ASEAN
coun tries. The good common framework in
the management, development, and trade
should be buil t, as withou t it, the AEC will
become merely an ASEAN’s rhetoric.
35 Mark Hong, ― Overview of Singapore’s Energy Situation ‖ ,
Energy Perspectives on Singapore and the Region,
(Singapore: ISEAS, 2007), 2-3.
ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 19
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ASEAN Coal Trend Challenges and Opportunities on Facing ASEAN Economic Community (AEC) 21
Short Biography of Authors
Asra Virginianita, lecturer at Depertment of International Relations at Faculty of
Social and Poli tical Sciences, University Indonesia. Got her Ph.d. from Meiji
gakuin University, Japan in 2014. She is research manager at Japan study
centre University of Indonesia, lead researcher in DIKTI on ― Perception and
Local Government Policy on facing ASEAN Economi c Communi ty (AEC)‖.
She ever become speaker in some seminars abou t AEC in Makasar, Jambi,
International Seminar that held by Centre for International Relations
Studies (CIRes)- FISIP UI. She also active writing opinion in Media and journ al
such as Jakarta Post, Global and Strategies Journal Airlangga University.
Santi H Paramitha was born on March, 11st, 1992 in Surabaya,
East Java. She graduated from Department of International
Relations - University of Indonesia in 2014. She actively
engage as contribu tor and research assistant in ASEAN Study
Centre, Faculty of Social and Poli tical Sciences, University of
Indonesia. She concern in ASEAN China free trade agreement
and Asean Economi c Communi ty (AEC) issues.
Meliana Lumbantoruan was born on July, 5th, 1987 in Indrapura-North
Sumatera. She got her Master degree from Department of International
Relations - Gadjah Mada University in 2013. She manage research and
kno wledge management division and also manage progr amme of Southeast
Partnership for Extractive Reform in Publish What You Pay. She interested
on Value chain, Asean Economi c Communi ty, extractive industry
governance, communi ty advocacy and sustainable development issues.
ASEAN energy consump tion is forecasted to rise because of the signi ficant
gro wt h of economy and popul ation in the region. Coal use continuou sly increase
as a replacement for oil and natural gas. ASEAN plays signi ficant roles in coal
consump tion and produ ction in Asia Pacific. Using the value chain approach, it
is projected that coal produ cer coun tries in ASEAN will have the chance to
maximize the market through bilateral trade or AEC framework. The AEC can
foster market integration in ASEAN, build s awareness of ASEAN coun tries to
develop their infrastructure in energy suff iciency, as well as develops clean coal
technolog y. Coal produ ction in ASEAN will still leant on Indonesia as the main
expor ter in ASEAN. Energy policy of each coun try in ASEAN has a lot of things in
common , which provides the space of building further regional coooperation in
managing energy features. The future of coal sector in ASEAN will highl y
depends on advancement of technolog y, impro vement of governance, effeciency
of transpor tation, and connectivity between the coun tries. Strengthening
cooperation and coordin ation must be a key strategy for ASEAN coun tries to
ensure readiness in facing AEC.
PWYP Indonesia is a coalition of civil societies for transparency and accountability
of extractive resources governance in Indonesia. PWYP Indonesia was established in
2007, legalised under Indonesia’s law in 2012 as Yayasan Transparansi Sumberdaya
Ekstraktif , and affiliates to the network of PWYP global campaign. PWYP Indonesia
works in transparency and accountability along the chain of extractive resource, from
development phase of contract and mining operation (publish why you pay and how
you extract), production phase and revenue from industries (publish what you pay), to
the spending phase of revenue for sustainable development and social welfare (publish
what you earn and how you spent).
Website: www.pwyp-indonesia.org Email: [email protected] Facebook Fanpage: Publish What You Pay Indonesia Twitter: @PWYP_Indonesia