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The Star
26-05-2025
- Business
- The Star
Indonesian energy deregulation vow draws global giants
JAKARTA: Global oil and gas giants appear to be taking a renewed interest in Indonesia's upstream oil and gas sector amid the government's push for energy security and promise of deregulation. Putra Adhiguna, managing director at the Energy Shift Institute, told The Jakarta Post on Friday (May 23) that some increase in upstream oil and gas investment had been observed in South-East Asia, driven partly by declining domestic gas production and the looming risk of higher liquefied natural gas (LNG) imports. In Indonesia, this trend is reflected in the anticipated return of major players like Shell, Chevron and TotalEnergies. South Korea's Daewoo Engineering & Construction (ENC) is also reportedly looking to invest around US$1 billion across various industries, including oil and gas. 'The region is responding to the pressure of falling output and rising demand, which could make reliance on imported LNG a costly and risky proposition,' said Putra. The country has been struggling to increase domestic production of ready-to-sell oil and gas, also known as lifting, despite its importance in achieving energy security and self-sufficiency, as envisioned by multiple administrations to cut costly energy imports. This was partly due to aging fields, limited new discoveries, regulatory uncertainties and infrastructure constraints that have hindered production growth in spite of ongoing efforts. During the International Petroleum Association Convention & Exhibition (IPA Convex) on Wednesday, President Prabowo Subianto personally asked his aides to simplify upstream regulations to boost oil and gas output, followed by a threat that he would remove officials who refused to do so. 'It remains to be seen how the President's call for regulatory simplification will translate into action in a sector where clarity and consistency are critical for long-term investment,' Putra said. For nearly a decade, authorities have been formulating clearer and more competitive tax incentives in the oil and gas sector, most notably since the gross split production sharing contract was introduced in 2017. The gross split scheme initially drew criticism for its complexity and unclear tax terms, which dampened investor interest, so the government began revising the framework. In September 2023, the Energy and Mineral Resources Ministry announced it was finalising an updated tax regulation to boost competitiveness and attract upstream investment, but no revision has been introduced since. Amid renewed urgency, upstream oil and gas regulator SKK Migas stated on May 20 that the tax revision would be completed 'soon', with SKK Migas head Djoko Siswanto saying that United States oil major Chevron was interested in exploring and developing sizable oil and gas reserves in Indonesia. According to Djoko, Chevron was seeking to develop blocks with potential reserves of 15 trillion cubic feet (425 billion cubic metres) of gas. He added that the company was in the early exploration stage of evaluating several identified assets, and that the government planned offer blocks in Bali or other eastern regions. He also said around 25 other oil and gas companies had shown interest in investing in the upstream oil and gas sector, some of which had completed joint studies and were preparing to move forward to the next stage. Chevron's Asia-Pacific exploration arm said it engaged regularly with SKK Migas, but according to spokesperson Cameron Van Ast, it was unable to disclose any related details in line with its long-standing policy, Reuters reported on May 20. IPA president Carole Gall said given Indonesia's potential, she was 'not surprised' to see an uptrend in oil and gas investments. 'The collaboration between the government and industry over the past few years has been excellent, and that helps,' she told a press briefing on May 14 during IPA Convex in Jakarta, about global energy companies' reportedly renewed interest in the country. Gall added that the major challenge for 2025 was strategy on maximising oil and gas output to strengthen the energy resilience. 'Given that upstream investments are long-term by nature, increasing output isn't something that can happen overnight. The focus, therefore, isn't just on boosting near-term production, but on ensuring the country reaches the right production levels in the years ahead,' she said. Prateek Pandey, head of APAC oil and gas research at Rystad Energy, said on Saturday that the recent re-engagement of key oil and gas companies signaled a promising future in the sector. While near-term investments are expected to be modest, as they will still be in the exploration phase, the long-term potential will be significant. This year could see South-East Asia welcome the highest number of final investment decisions on gas projects in a decade for a potential increase in output of 18 per cent, according to a report published on April 29 by US-based nonprofit Global Energy Monitor (GEM). According to the report, 2025 could see as many as 13 new gas projects financed in the region: five projects in Indonesia, two in Malaysia, four in Vietnam, one in Brunei and one in Myanmar. Annual production capacity could expand by more than 20 billion cbm if all projects were approved, GEM said, signaling a strategic regional pivot toward accelerating gas development. It noted, however, 'These FIDs have faced a history of delays, so the likelihood of these projects moving forward remains unclear.' - The Jakarta Post/ANN
Japan Today
12-05-2025
- Business
- Japan Today
U.S. solar tariffs could drive Asia transition boom
The share of solar cell exports to the US from Cambodia, Malaysia, Thailand and Vietnam By Sara HUSSEIN Massive planned U.S. duties on solar panels made in Southeast Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say. Washington has announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia. The levies follow an investigation, launched before U.S. President Donald Trump took office, into "unfair practices" in the countries, particularly by Chinese-headquartered firms. If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10-percent levies for most countries, and 145 percent on Chinese-made goods. For the U.S. market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80 percent of every stage of the manufacturing process. The new tariffs "will practically make solar exports to U.S. impossible commercially", said Putra Adhiguna, managing director at the Energy Shift Institute think tank. Southeast Asia accounted for nearly 80 percent of U.S. solar panel imports in 2024. And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components. For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news. Many shifted operations to Southeast Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries. The proposed new duties range from around 40 percent for some Malaysian exports to an eye-watering 3,521 percent for some Cambodia-based manufacturers. But there may be a silver lining for the region, explained Ben McCarron, managing director at Asia Research & Engagement. "The tariffs and trade war are likely to accelerate the energy transition in Southeast Asia," he said. China will "supercharge efforts" in regional markets and push for policy and implementation plans to "enable fast adoption of green energy across the region", driven by its exporters. Analysts have long warned that countries in the region are moving too slowly to transition from planet-warming fossil fuels like coal. "At the current pace, it (Southeast Asia) risks missing out on the opportunities provided by the declining costs of wind and solar, now cheaper than fossil fuels," said energy think tank Ember in a report last year. For example, Malaysia relied on fossil fuels for over 80 percent of its electricity generation last year. It aims to generate 24 percent from renewables by 2030, a target that has been criticised as out of step with global climate goals. The tariff regime represents a double opportunity for the region, explained Muyi Yang, senior energy analyst at Ember. So far, the local solar industry has been "largely opportunistic, focused on leveraging domestic resources or labour advantages for export gains", he told AFP. Cut off from the U.S. market, it could instead focus on local energy transitions, speeding green energy uptake locally and driving a new market that "could serve as a natural hedge against external volatility". Still, replacing the US market will not be easy, given its size and the relatively nascent state of renewables in the region. "Success hinges on turning this export-led momentum into a homegrown cleantech revolution," said Yang. "Clearance prices" may be attractive to some, but countries in the region and beyond may also be cautious about a flood of solar, said Adhiguna. Major markets like Indonesia and India already have measures in place intended to favor domestic solar production. "Many will hesitate to import massively, prioritising trade balance and aims to create local green jobs," he said. © 2025 AFP
eNCA
05-05-2025
- Business
- eNCA
US solar tariffs could drive Asia transition boom
BEIJING - Massive planned US duties on solar panels made in Southeast Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say. Earlier this month, Washington announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia. The levies follow an investigation, launched before US President Donald Trump took office, into "unfair practices" in the countries, particularly by Chinese-headquartered firms. If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10-percent levies for most countries, and 145 percent on Chinese-made goods. For the US market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80 percent of every stage of the manufacturing process. The new tariffs "will practically make solar exports to US impossible commercially", said Putra Adhiguna, managing director at the Energy Shift Institute think tank. Southeast Asia accounted for nearly 80 percent of US solar panel imports in 2024. And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components. For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news. Many shifted operations to Southeast Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries. The proposed new duties range from around 40 percent for some Malaysian exports to an eye-watering 3,521 percent for some Cambodia-based manufacturers. - Tariffs 'accelerate' transition - But there may be a silver lining for the region, explained Ben McCarron, managing director at Asia Research & Engagement. AFP | Nicholas SHEARMAN "The tariffs and trade war are likely to accelerate the energy transition in Southeast Asia," he said. China will "supercharge efforts" in regional markets and push for policy and implementation plans to "enable fast adoption of green energy across the region", driven by its exporters. Analysts have long warned that countries in the region are moving too slowly to transition from planet-warming fossil fuels like coal. "At the current pace, it (Southeast Asia) risks missing out on the opportunities provided by the declining costs of wind and solar, now cheaper than fossil fuels," said energy think tank Ember in a report last year. For example, Malaysia relied on fossil fuels for over 80 percent of its electricity generation last year. It aims to generate 24 percent from renewables by 2030, a target that has been criticised as out of step with global climate goals. The tariff regime represents a double opportunity for the region, explained Muyi Yang, senior energy analyst at Ember. So far, the local solar industry has been "largely opportunistic, focused on leveraging domestic resources or labour advantages for export gains", he told AFP. Cut off from the US market, it could instead focus on local energy transitions, speeding green energy uptake locally and driving a new market that "could serve as a natural hedge against external volatility". Still, replacing the US market will not be easy, given its size and the relatively nascent state of renewables in the region. "Success hinges on turning this export-led momentum into a homegrown cleantech revolution," said Yang. "Clearance prices" may be attractive to some, but countries in the region and beyond may also be cautious about a flood of solar, said Adhiguna. Major markets like Indonesia and India already have measures in place intended to favour domestic solar production. "Many will hesitate to import massively, prioritising trade balance and aims to create local green jobs," he said.
The Star
05-05-2025
- Business
- The Star
US tariffs drive solar boom
MASSIVE planned US duties on solar panels made in South-East Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say. Earlier this month, Washington announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia. The levies follow an investigation, launched before US President Donald Trump took office, into 'unfair practices' in the countries, particularly by Chinese-headquartered firms. If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10% levies for most countries, and 145% on Chinese-made goods. For the US market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80% of every stage of the manufacturing process. The new tariffs 'will practically make solar exports to US impossible commercially', said Putra Adhiguna, managing director at the Energy Shift Institute think tank. South-East Asia accounted for nearly 80% of US solar panel imports in 2024. And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components. For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news. Many shifted operations to South-East Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries. The proposed new duties range from around 40% for some Malaysian exports to an eye-watering 3,521% for some Cambodia-based manufacturers. But there may be a silver lining for the region, explained Ben McCarron, managing director at Asia Research & Engagement. 'The trade war is likely to accelerate the energy transition in South-East Asia,' he said. China will 'supercharge efforts' in regional markets and push for policy and implementation plans to 'enable fast adoption of green energy across the region', driven by its exporters. Analysts have long warned that the region is moving too slowly to transition from planet-warming fossil fuels like coal. 'At the current pace, it (South-East Asia) risks missing out on the opportunities provided by the declining costs of wind and solar, now cheaper than fossil fuels,' said energy think tank Ember in a report last year. The tariff regime represents a double opportunity for the region, explained Muyi Yang, senior energy analyst at Ember. So far, the local solar industry has been 'largely opportunistic, focused on leveraging domestic resources or labour advantages for export gains', he said. Cut off from the US market, it could instead focus on local energy transitions, speeding green energy uptake locally and driving a new market that 'could serve as a natural hedge against external volatility'. Still, replacing the US market will not be easy, given its size and the relatively nascent state of renewables in the region. 'Success hinges on turning this export-led momentum into a homegrown cleantech revolution,' said Yang. Major markets like Indonesia and India already have measures in place intended to favour domestic solar production. — AFP
Qatar Tribune
04-05-2025
- Business
- Qatar Tribune
Massive US solar tariffs could drive Asia transition boom
Agencies Massive planned US duties on solar panels made in Southeast Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say. Earlier this month, Washington announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia. The levies follow an investigation, launched before US President Donald Trump took office, into 'unfair practices' in the countries, particularly by Chinese-headquartered firms. If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10-percent levies for most countries, and 145 percent on Chinese-made goods. For the US market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80 percent of every stage of the manufacturing process. The new tariffs 'will practically make solar exports to US impossible commercially', said Putra Adhiguna, managing director at the Energy Shift Institute think tank. Southeast Asia accounted for nearly 80 percent of US solar panel imports in 2024. And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components. For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news. Many shifted operations to Southeast Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries. The proposed new duties range from around 40 percent for some Malaysian exports to an eye-watering 3,521 percent for some Cambodia-based manufacturers.
