The green deal & geoeconomics in Southeast Asia

ANU Southeast Asia Institute Research Seminar Series

This seminar will feature two presentations.

Behind the green deal: The geoeconomics of coal-exporting countries’ alliances by Cahyani Widi Larasakti

This paper will explore the seemingly contradictory behaviour of Indonesia and Australia, both coal-exporting nations, which are stigmatised as climate laggards while simultaneously working to green their energy sectors through bilateral alliances. It will examine the drivers and development of strategic partnerships in the green energy transition, underpinned by an emerging interdependence in renewable energy technologies and resources. Rather than relying solely on multilateral schemes, the potential for partnership is increasingly facilitated by existing regional and bilateral institutional architecture. The critical mineral endowments of Indonesia and Australia, coupled with the electric vehicle (EV) and battery boom, are broadening their trade and investment agendas, leading them to aim for markets beyond their traditional commodities and diversify their trading partners, illustrating the geoeconomic nature of the energy transition amid the fracture of globalisation. However, despite the strong potential for collaboration, barriers and challenges are profound, hindering the progression of the partnership.

Why is there no geoeconomics in Southeast Asia? Institutional constraints of weaponising economy in the region by Arrizal Jaknanihan

Geoeconomics—the use of economic instruments to advance geopolitical interests—has become a prominent feature of interstate competition after the Cold War. This study analyses why Southeast Asian countries largely refrain from weaponising their economies, making the conventional practice of geoeconomics rarely taking place in the region. It argues that the conventional geoeconomics. where economic policies aimed at coercing and harming other countries, runs against the notion of security that is uniquely comprehensive in the Southeast Asia region. Analysis of this study focuses on the conjunction at the regional and domestic levels. Regional security norms and integration into the global production network make Southeast Asian countries refrain from disrupting sustained economic engagement with international partners. On the domestic level, conventional geoeconomics poses threats to the security of the state that is intrinsically linked to its economic security and regime security. Market disruption from conventional geoeconomics poses risks for political leaders whose legitimacy and ruling coalition rely on the ability to maintain economic performance in the country. The finding of this study challenges the prevailing understanding of the study of geoeconomics that portrays Southeast Asian countries as passive actors and receiving end of geoeconomic exercises by major powers. Instead, Southeast Asian countries achieve security by actively avoiding the use of conventional geoeconomic practices in the region.

About the speakers:

Cahyani Widi Larasakti is a PhD candidate in the School of Social and Political Science at the University of Melbourne. She is researching the geo-economics of the Carbon Club’s energy transition partnerships. She is particularly interested in how Australia and Indonesia are establishing strategic alliances in the energy sector amidst the ongoing fracture in globalisation.

Arrizal Jaknanihan is a Master of International Relations candidate at the Coral Bell School of Asia Pacific Affairs, the Australian National University. He formerly served as an analytics partnership officer at Indonesia’s Ministry of National Development Planning (Bappenas). Arrizal’s research centred around geoeconomics and the intersection of security and trade in Southeast Asia, with a particular focus on Indonesia and ASEAN. His analysis on the topic is featured in several outlets, including East Asia Forum, The Jakarta Post, New Mandala, The Interpreter, The Diplomat, and RSIS Commentaries.

Chair: Dr Eve Warburton, ANU

Image: Cahyani Widi Larasakti and Arrizal Jaknanihan

The ANU Southeast Asia Institute Research Seminar Series is a recurring seminar series that showcases the work of scholars working on political, social, and cultural issues in Southeast Asia.

Contact the ANU Southeast Asia Institute Research Seminar Series Conveners:

Deepak Nair at deepak.nair@anu.edu.au
Nicholas Chan at waiyeap.chan@anu.edu.au

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